JA20-114 Mod 01 DISN Tech Refresh Turnkey Bridge - Redacted.pdf

JUSTIFICATION & APPROVAL (J&A) FOR FEDERAL ACQUISITION

REGULATION (FAR) SUBPART 16.5 ACQUISITIONS

EXCEPTION TO FAIR OPPORTUNITY

Multiple Award Schedule/Multiple Award Contract (MAC)

Orders under MAC/ Fair Opportunity – FAR 16.505, Department of Defense FAR Supplement (DFARS) 216.505-70, Procedures, Guidance and Information (PGI) 216.505-70

Tracking Number: 832016283 Contract Number: HC1028-18-D-0018 Task/Delivery Order Number: HC1028-20-F-6340 Procurement Title: Defense Information System Network (DISN) Technology Refresh Turnkey Project Support Estimated Value:

Statutory and Regulatory Authority: 10 U.S.C. 2304c(b) and FAR 16.505(b)(2)(i)(C)

MODIFIED JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

Number: JA20-114 MOD 01

Upon the basis of the following justification, I, as the Head of the Contracting Activity, hereby approve this exception to fair opportunity pursuant to the Statutory Authority of 10 U.S.C.

2304c(b) and Regulatory Authority of FAR 16.505(b)(2)(i)(C).

1. REQUIRING AGENCY AND CONTRACTING OFFICE:

Requesting Agency: Defense Information Systems Agency (DISA) Mission Support Division (IE6) 6910 Cooper Avenue Fort Meade, MD 20755-7088

Contracting Activity: DISA/Defense Information Technology Contracting Organization

(DITCO), PL8313

2300 East Drive, Building 3600 Scott AFB, IL 62225

2. NATURE/DESCRIPTION OF ACTION(S):

The nature of this action is to procure a new task order for Technology Refresh Turnkey Project Support (current task order HC1028-13-D-0011 HC1028-18-F-0795) until the re-compete effort is awarded. The period of performance (PoP) for the bridge is a one-year base period (July 30, 2020 – July 29, 2021) with one, six-month option period (July 30, 2021 – January 29, 2022). The estimated lifecycle value of the cost plus fixed fee (CPFF) task order is and will utilize a variety of appropriated and non-appropriated (i.e., Defense Working Capital Funds) funding sources from DISA and other mission partners.

MOD 01: The task order bridge was awarded later than originally anticipated. The

DISN Technology Refresh Turnkey Project Support-JA20-114 Mod 01

Page 2 of 8 Pages bridge was awarded August 26, 2020 with a one-year base period (August 26, 2020 – August 25, 2021) with one, six-month option period (August 26, 2021 – February 25, 2022).

This modification is for a bridge continuation period extending from February 26, 2022 through October 31, 2022 for DISN Technology Refresh Turnkey Project Support Task Order (TO) HC1028-20-F-6340, which is currently set to expire on February 25, 2022. The estimated value of this bridge continuation is .

This extension will ensure continued support during the protest period of the follow-on Technologies Refreshment and Implementation (TRI)-Global Solutions Management (GSM) Indefinite Delivery Indefinite Quantity (IDIQ) contract. This extension will allow adequate time to resolve the protest, lift the stop-work order, and allow for the necessary 60-day transition period. Fiscal Year 2022 funding will be used.

3. DESCRIPTION OF SUPPLIES/SERVICES:

This action is for the procurement of Technology Refresh Turnkey Project Support, which provides turnkey solutions for the technology refresh implementations in the Continental U.S. (CONUS) and Outside CONUS (OCONUS) and includes the implementation of several technologies in the DISN in order to provide mission-critical voice, video, and data services worldwide. This bridge will ensure continuity of Technology Refresh Turnkey Project Support.

MOD 01: The current task order expires on February 25, 2022. The follow-on effort was awarded as task order HC1028-22-D-0001/HC1028-22-F-0070, issued against the TRI-GSM IDIQ contract. TRI-GSM was competed under solicitation number HC1028-20-R-0060 as a small business set-aside acquisition. On December 13, 2021, the TRI-GSM IDIQ contract (HC1028-22-D-0001) was awarded. Debriefings concluded on January 03, 2022. On January 6, 2022, task order HC1028-22-D- 0001/HC1028-22-F-0070 (DISN Technology Refresh Turnkey Project Support Secret Internet Protocol Router Network (SIPR) Router Refresh (SRR)) was awarded. The bid protest was submitted in a timely manner to trigger an automatic suspension of performance of the follow-on contract pending resolution of the protest in accordance with FAR 33.104(c)(1). The extension of the current task order will allow for continued support of this vital program during the protest period, while retaining the ability to provide a consistent level of effort for DISA and its stakeholders without a break in service.

The estimated value of the support for this extension is which includes all labor categories, travel, and other direct costs (ODCs) for the existing contract/order (HC1028-20-F-6340) for the extension period of February 26, 2022 through October 31, 2022.

4. SUPPORTING RATIONALE, INCLUDING A DEMONSTRATION THAT THE

PROPOSED CONTRACTOR’S UNIQUE QUALIFICATIONS OR THE NATURE OF THE

ACQUISITION REQUIRES USE OF AN EXCEPTION TO FAIR OPPORTUNITY:

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(a) Exception to Fair Opportunity.

In accordance with FAR 16.505(b)(2)(i)(C), the follow-on task order must be issued on a sole-source basis in the interest of economy and efficiency because it is a logical follow-on to an order already issued under the Global Solutions Management-Engineering, Transition, and Implementation (GSM-ETI) multiple award Indefinite Delivery, Indefinite Quantity (IDIQ) contract. All GSM-ETI awardees were given a fair opportunity to be considered for the original order.

(b) Description of the Justification.

This justification is for services that were previously awarded on a competitive basis to By Light Professional IT Services, Inc (By Light). The current task order was competitively awarded as small business set-aside under the GSM-ETI multiple award IDIQ contract;

however, the GSM-ETI contract ordering period ended December 31, 2019, and task orders may not go beyond December 31, 2020. As such, the bridge will result in a new task order award rather than extension of the existing task order. The follow-on effort is projected to be awarded to Phacil, LLC (a By Light wholly owned subsidiary) via the ENCORE III Full and Open (F&O) multiple award IDIQ contract.

Efforts are currently ongoing to pursue a single award IDIQ contract for Technologies Refreshment and Implementation (TRI)-GSM requirements. TRI-GSM will provide the support necessary to carry out the implementation and integration activities to support technologies refreshment, optimization, and expansion of customer capabilities for the Department of Defense Information Network (DODIN)/DISN and related services.

Additionally, the new TRI-GSM contract will provide all necessary, critical logistics activities to support global DODIN implementation efforts, thus efficiently aligning requirements in support of DISA. The bridge will allow requirements to be added until the follow-on (TRI-GSM) contract is available (projected award date is April 18, 2021).

Historically, the technology refresh projects are completed within a one year period of performance. A bridge of one-year plus a six-month option will provide the necessary flexibility given the project-based nature of these requirements and allows DISA and non- DISA mission partners to add new projects and ensure the necessary period of performance to complete the non-severable projects. Failure to maintain the contractor support provided by Phacil, LLC (a By Light wholly owned subsidiary) until the follow-on procurement can be awarded will result in a loss of continuity of services and will be detrimental as it will negatively impact mission-critical functionality and services to DISA. Phacil, LLC understands the requirements and currently possesses the requisite expertise and relevant experience to continue performance.

MOD 01: HC1028-20-F-6340 was re-competed under solicitation number HC1028- 20-R-0060. Award of HC1028-22-D-0001 was made on December 13, 2021 and this award was protested. Thereafter, a stop-work order was issued.

NOTE: Modification P00032 to task order HC1028-18-D-0018/HC1028-20-F-6340 was issued on November 18, 2021, executing the Novation Agreement pursuant to FAR 42.12, recognizing By Light Professional IT Services LLC (By Light) as the

Page 4 of 8 Pages successor in interest of Phacil, LLC of the ENCORE III task order HC1028-18-D- 0018/HC1028-20-F-6340. Reference will be made to By Light for all modification 01 portions of this justification.

(c) Justification.

(1) Minimum Government requirements.

DISA and non-DISA mission partners all depend on the support to perform installation, configuration, upgrade, relocation, and removal of network hardware devices and supporting equipment and the activation, transition, and decommissioning of network circuits as required to fulfill DISN customer requirements. Additionally, this task order will provide services necessary to implement, maintain, design and augment the DISA security posture through the implementation of DISN-based Joint Regional Security Stack as provided by the Government. This support is critical to maintain acceptable levels of performance in support of DISA and its mission partners to implement major projects. The DISN Network is the crucial backbone to the worldwide telecommunications infrastructure that provides a full range of information products and services in support of the Department of Defense (DoD) and other authorized users.

The DISN is managed by DISA to satisfy DoD global requirements for survivable, secure, reliable, and available telecommunication services. The DISN currently comprises a number of interrelated crucial networks that has evolved over the years in response to emerging requirements and availability of new technologies. These networks provide access to DISN common user services and long haul transport for DISA customers. The DISN currently has approximately 400 service delivery nodes located at geographically diverse locations worldwide. Failure to support mission partners and other stakeholders will negatively impact the mission critical support functions that ensure the timely deployment and continuation of telecommunication services for DISA and is stakeholders. A gap in service would be devastating to the warfighter and have worldwide ramifications as this effort allows the vital components of the DISN infrastructure to be deployed to other military forces around the globe.

(2) Proposed sole source contractor.

Phacil, LLC (a By Light wholly owned subsidiary) is the only source that can continue to fulfill this requirement within the necessary time frame and without risk of a substantial break in service/support to DISA and its mission partners.

MOD 01: Due to the bid protest, By Light is the only source that can fulfill this requirement without risk of a substantial break in service/support to DISA IE and its stakeholders. Again, due to the bid protest filed, By Light is the only source that can supply the needed services during this period without a break in service.

(3) Discussion regarding cause of the sole source situation.

This effort will be consolidated with implementation efforts under the new TRI-GSM IDIQ contract vehicle; as explained above, the anticipated award date for TRI-GSM is currently April 18, 2021. Historically, the projects are completed within a period of performance of one year. With this bridge DISA will be able to add new projects to the task order and ensure that any new projects have the necessary period of performance

Page 5 of 8 Pages to complete the projects. A gap in the critical technology refresh support that By Light currently provides is unacceptable, as it will negatively impact mission-critical functionality. To transition the bridge task order to another contractor is not in the interest of economy and efficiency and would result in a break in service. This is not feasible, as it could result in multiple project transition periods in a short time period.

This would jeopardize performance of this highly specialized service. Therefore, a task order sole source bridge is being requested, which will allow runway for projects as well allow adequate time for the award of TRI-GSM, handle potential protests, and transition efforts to the TRI-GSM contract.

MOD 01: A sole-source action is necessary due to a protest filed in response to the award of the follow-on contract, HC1028-22-D-0001. If a bid protest had not been received, this extension would not be necessary.

(4) Demonstration of unique source.

Phacil, LLC (a By Light wholly owned subsidiary) is uniquely postured to support DISA without loss of time and work stoppage. Phacil, LLC understands the requirements and currently possesses the requisite expertise and relevant experience as By Light is the incumbent on the existing task order and currently provides required experts with in-depth knowledge of the DODIN. The highly specialized skillsets in support of the DODIN are required to respond to immediate/emergent requirements when there is compromise to the DODIN (or potential compromise); however, these specialized services are not readily available in the marketplace in the timeframe necessary.

(5) Procurement discussion.

This effort is included in the scope of the TRI-GSM single-award IDIQ contract, which is currently in the acquisition planning stage. The projected award date for TRI-GSM is April 18, 2021.

MOD 01: The TRI-GSM IDIQ was awarded later than originally anticipated. On December 13, 2021, the TRI-GSM IDIQ contract (HC1028-22-D-0001) was awarded.

(6) Impact.

Failure to maintain the contractor support continuity that will be provided by Phacil, LLC until the follow-on procurement can be awarded and transitioned will result in a loss of continuity of services and cause detrimental effects as it will negatively impact mission-critical functionality and services to military operations. The current contractor, By Light, provides highly specialized and critical support to DISA and DISA’s mission partners, and a gap in service would cause a decline in quality of services to DISA and its mission partners.

5. COST/PRICE FAIR AND REASONABLE DETERMINATION:

Determination of fair and reasonable price for this bridge task order will be based on the independent government cost estimate, comparison to the competitively awarded GSM-ETI

Page 6 of 8 Pages task order labor rates, and comparison to Phacil’s ENCORE III labor rates. The contracting officer will determine if the price is fair and reasonable by comparing past rates and labor categories on the current task order and requirements of the performance work statement being performed. The final cost/price will be determined fair and reasonable upon completion of negotiations.

MOD 01: Determination of fair and reasonable pricing for this extension modification will be based on the independent government cost estimate, and comparison to the previously negotiated HC1028-20-F-6340 task order labor rates at the time of initial bridge award. The contracting officer will determine if the price is fair and reasonable by comparing past rates and labor categories to this TO for current work and requirements of the performance work statement being performed. The final cost/price will be determined fair and reasonable upon completion of negotiations.

6. MARKET RESEARCH:

Phacil, LLC is the only contractor at this time with the intimate knowledge and technical personnel capabilities to support the requirement in the timeframe necessary for uninterrupted support. Market Research was conducted, and it was determined that follow-on efforts would be fulfilled under the competed TRI-GSM IDIQ, when awarded. Based on the results of market research, the Government has determined that the current level of support can only be provided by the incumbent. Phacil, LLC (a By Light wholly owned subsidiary) is the only source that can continue providing the level of support required without risk of a substantial break in support.

MOD 01: This is an extension to the existing task order bridge HC1028-20-F-6340 to ensure continued support until the protest and transition period of the TRI-GSM IDIQ contract, HC1028-22-D-0001, is complete. Market research was conducted for the follow-on contract. The market research identified potential sources, which enabled the follow-on contract to be conducted as an open market small business set-aside.

7. ANY OTHER SUPPORTING FACTS: N/A

8. ACTIONS THE AGENCY MAY TAKE TO REMOVE OR OVERCOME BARRIERS

THAT LED TO THE EXCEPTION TO FAIR OPPORTUNITY:

(a) Procurement History.

Contract/TO Number: HC1028-13-D-0011/HC1028-18-F-0795 Brief Description: DISN Technology Refresh Turnkey Project

Support (GSMETI00034.00) Contractor: By Light Professional IT Services, Inc.

Business Type: Awarded as a small business set-aside Life Cycle Contract Value: $58,231,458 Period of Performance (including all options):

August 27, 2018 - August 26, 2020

Contract Type: CPFF

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Basis of Award: Competitively awarded small business set-aside via the GSM-ETI multiple award IDIQ

Contract/TO Number: HC1028-13-D-0011-0005 Brief Description: DISN Technology Refresh Support

(GSMETI00021.00)

Contractor: By Light Professional IT Services, Inc.

Business Type: Awarded as a small business set-aside Life Cycle Contract Value: $32,867,367 Period of Performance (including all options):

January 6, 2014 – January 5, 2018

Contract Type: Firm fixed price (FFP) and CPFF Basis of Award: Competitively awarded small business set-aside via the GSM-ETI multiple award IDIQ

(b) An exception to fair opportunity or full and open competition has not been accomplished for any prior procurement for this requirement. The requirements covered under this task order for purposes of this bridge will be issued under the ENCORE III F&O multiple award IDIQ contract.

MOD 01: This modification is a bridge extension of the existing task order bridge HC1028-20-F-6340 until the protest of the follow-on contract can be resolved. The current task order is set to expire on February 25, 2022. Solicitation HC1028-20-R- 0060 for the follow-on contract was posted on sam.gov on September 14, 2020 as a small business set-aside. Five proposals were received. Award was made on December 13, 2021. A stop-work order was issued on January 11, 2022 due to a timely bid protest.

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TECHNICAL CERTIFICATION: I certify that the supporting data under my cognizance which are included in the J&A are accurate and complete to the best of my knowledge and belief.

NAME:

TITLE/ORGANIZATION: COR/IE61

PHONE:

REQUIREMENTS CERTIFICATION: I certify that the supporting data under my cognizance which are included in the J&A are accurate and complete to the best of my knowledge and belief.

NAME:

TITLE/ORGANIZATION: COR/IE61

CONTRACTING OFFICER CERTIFICATION: I certify that this justification is accurate and complete to the best of my knowledge and belief.

NAME: Bryttanie M. Colletta SIGNATURE: See separate signature page

TITLE/ORGANIZATION: Contracting Officer, DISA/DITCO/PL8313

PHONE: 618-418-6959 DATE:

HEAD OF THE CONTRACTING ACTIVITY (HCA) APPROVAL: I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief.

Since this justification does not exceed $100M, this review serves as approval.

NAME:

TITLE/ORGANIZATION: Head of the Contracting Activity

ALL QUESTIONS REGARDING THIS JUSTIFICATION ARE TO BE REFERRED TO

Victoria Arentsen, victoria.l.arentsen.civ@mail.mil, 618-418-6098 and Bryttanie Colletta, bryttanie.m.colletta.civ@mail.mil, 618-418-6959.