JA21-036 CS30013 Thule_JA _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

Purchase Request Number: CS30013 Contract Number: HC1013-21-F-0114 Procurement Title: Thule Enterprise Commercial Satellite Communications (COMSATCOM) Solution (TECS) Estimated Value:

Statutory Authority: 10 United States Code (U.S.C.) §2304(c)(b) and FAR 16.505(b)(2)(i)(B)

EXCEPTION TO FAIR OPPORTUNITY

Justification for Exception Number: JA21-036

Upon the basis of the following justification, I, as Head of the Contracting Activity, hereby approve the use of other than full and open competition of the proposed contractual action pursuant to the authority of 10 U.S.C. §2304(c)(b), FAR 16.505(b)(2)(i)(B).

1. REQUIRING AGENCY AND CONTRACTING OFFICE:

a. Requesting Agency:

Headquarters United States Space Force (HQ USSF) 6910 Cooper Avenue Fort Meade, Maryland 20755

b. Requiring Agency:

Defense Information Systems Agency (DISA) Infrastructure Executive (IE) 1 6910 Cooper Avenue Fort Meade, Maryland 20755

c. Requiring Agency:

821st Support Squadron Thule Air Base (AB), Greenland

d. Contracting Activity:

DISA/Defense Information Technology Contracting Organization (DITCO)/PL8222 2300 East Drive, Building 3600 Scott Air Force Base, Illinois 62225

2. NATURE/DESCRIPTION OF ACTION(S):

The nature of this action is to issue a sole-source, firm-fixed-price (FFP) contract for COMSATCOM managed services providing one full-duplex 85 Megabit per second (Mbps) link

Thule Enterprise COMSATCOM Solution (TECS)-JA21-036

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(2) Proposed sole source Contractor. SES-GS currently provides the required service via contactor owned antenna and network equipment. SES-GS is the only contractor capable of providing the services required due to the geographic and technical limitations due to inherent restraints from extreme climate, and limited capital investment infrastructure located at Thule AB. Presently, SES-GS is the only commercial contractor with a satellite earth terminal and associated equipment located at Thule AB to support mission critical COMSATCOM.

Market research revealed that no other contractor currently has the new technology or infrastructure to meet the Government's need.

(3) Discussion regarding cause of the sole source situation. This requirement is unique due to the location of Thule AB, a remote arctic location where terrestrial lines are not currently available. Thule AB receives large cargo shipments twice a year, and delivering equipment such as an alternate antenna would take two trips due to limited space and priority on the cargo ship, thus costing at least a full year and up to two years to receive the delivery of the antenna alone. Thule’s environment is cold, and the ground is frozen nine months out of the year, only allowing construction during the three warmer summer months. With construction projects planned out for several years at Thule AB, it could take even longer to get on the construction schedule. And due to the COVID pandemic, Thule AB has felt even further delays in deliveries and construction projects that would further delay any additional planned construction. In addition to the time constraints, the expense of installing an alternate antenna would cost an additional

. The cost to duplicate or replace the antennae would not benefit the Government when a solution currently exists without the additional logistics, construction and install costs. The duplication in costs associated with providing alternative antenna solutions on Thule AB would not be recovered by competing the requirement. Due to these logistics barriers, there is currently no other contractor prepared and available to meet this mission.

(4) Demonstration of unique source. SES-GS is the only contractor with

COMSATCOM equipment in place in Thule AB that can provide service on the required service start date. The geographical and technical challenges service providers face with providing broadband satellite services in the Thule region explains why there are no other sources who can provide this service. The arctic environment, unpredictable weather patterns, and near-horizon location are further challenged by theoretical and persistent orbital mechanics constraints, i.e., satellites moving under the influence of gravity, atmospheric drag, and thrust.

Thus, a new contractor could not prove the sought service without first constructing new facilities and replicating the existing infrastructure at Thule, which is owned and operated by SES-GS. Since 1999, SES-GS has established its unique qualification as the only proven and reliable source of critical telecommunication capabilities at Thule AB.

(5) Procurement Discussion. SES-GS wholly owns the hub equipment, teleport services, and antennas at Thule AB. No other potential contractor currently has

Page 5 of 8 Pages infrastructure in place to provide this service and SES-GS is under no obligation to allow another contractor to provide service and/or perform O&M functions at its facilities. The incumbent, SES-GS, is currently the only commercial provider of high bandwidth satellite service into Thule AB. SES-GS is the only commercial communications company that has a proven capability to deliver the sought service and already has in place all the equipment, facilities, and infrastructure needed to provide, operate, and maintain the requested service. No other source has the necessary infrastructure at Thule AB to meet the requirement.

Moreover, there are no added logistics requirements for SES-GS to provide the service, nor is there a requirement for SES-GS to perform any construction at Thule AB to continue the service. SES-GS would be capable of providing the required service on the necessary start date with no break in current service. Any other contractor would require site visits, shipping of equipment, antenna construction, groundwork architecture, circuit installs for backhaul traffic, testing of configuration and integrations of COMSATCOM systems at Thule AB and at Schriever AFB.

(6) Impact. Should the awarded contractor not make service available immediately upon May 3, 2021, Thule AB would be fully isolated from all outside sources.

Thule AB is the northernmost base and the only installation north of the Arctic Circle. In this scenario, Thule AB would lose DISN connectivity, which severs their communications access to SIPRnet, NIPRnet, Joint Worldwide Intelligence Communication System, Missile Early Warning, and other DoD assets. Thule AB being signal isolated would not only endanger the military and civilian personnel stationed there, but will also reduce the overall protective posture of the United States with the loss of an early warning station. Thule AB personnel provide 24/7 missile warning and space surveillance using high frequency radar. Without the full range of communications support with access to the DISN as provided via this contract, these missions would be left in the dark without option for communications by early warning of missile defense systems, nuclear attack vectors or submarine launch communications. Additionally, without the communications services and maintenance that SES-GS provides, the Government would forfeit by depreciation, any infrastructure investment. In the austere environment, harsh conditions deteriorate infrastructure quickly; any downtime would be detrimental for the DoD’s C4 communications infrastructure at Schriever AFB and Thule AB and would not be recouped by the Government.

5. COST/PRICE FAIR AND REASONABLE DETERMINATION: With the assistance of a Cost and Price Analyst, and in accordance with FAR 15.404-1(b), the Contracting Officer will determine whether SES-GS’ proposed price is fair and reasonable before award. Certified cost or pricing data is not required for this commercial acquisition, in accordance with FAR 15.403- 1(b)(3). Proposal pricing of the sole source provider will be compared to the independent government cost estimate, historical data, published market prices for the service, and other contracts for similar services. Based on this analysis, the Contracting Officer will determine whether the negotiated price is fair and reasonable.

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6. MARKET RESEARCH: In addition to the Sources Sought and the Notice of Intent (NOI), both published on beta.sam.gov within the last twelve months, on-going discussions have been conducted with Thule AB end users and the satellite industry contractors in an effort to find the best possible solution. Industry Day events have been attended by USSF staff, and other Government agencies where business solutions at Thule have been consulted. The results all point to the same solution: there is no other contractor currently operating that can provide the needed service without a significant cost to the Government and within the time available before the new service needs to be in place. However, the market research has revealed that emerging technologies may be available in the next few years with the deployment of new low earth orbit technology that could provide alternative solutions for the Government; these services are expected for operational deployment on or around 2024 and may provide viable options for a competitive solution at Thule AB.

7. ANY OTHER SUPPORTING FACTS: Not Applicable

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

THAT LED TO THE EXCEPTION TO FULL AND OPEN COMPETITION:

(a) Procurement History.

(1) In 1999, the requirement was competed and SES-GS was the only contractor to submit a proposal. After the failed attempt of another contractor in 2010, this requirement has remained a sole source award because no other contractor has been identified that could meet the requirement without a significant and unnecessary investment from the Government. As a result, SES-GS has been the awardee of this requirement since 1999, except for a brief period of time in 2010 when the alternate contractor received the award and was unable to meet the requirement, which caused a subsequent sole source award to SES-GS. The contract (DCA200-00-C-5000 – Thule Tracking Station (TTS) Consolidated Communication Services (CCS) was initially awarded via a full and open competitive solicitation in 1999. The TTS CCS contract was awarded to SES-GS who had the infrastructure in place to support the requirement.

(2) On October 29, 2009, the last of the option periods available under the TTS CCS contract expired. The Government awarded three 6-month extensions following the expiration of the DCA200-00-C-5000. The first extension was required to prepare for a new solicitation in an effort to competitively acquire the required service at Thule. A second extension was required to transition to the new contractor. This effort failed in 2010 after the new contractor failed to successfully deliver the required service at Thule.

The third six-month extension was required to prepare and award the sole source contract to the incumbent, SES-GS.

(3) Prior to the 2011 contract award to SES-GS, DISA explored other options to competitively acquire an alternate technical solution via other contract vehicles.

However, there were no suitable vehicles that could meet all of the requirements. In addition, DISA explored options under the DISN Transmission Services Pacific II (DTS- P II) contract. However, this effort did not result in a solution that provided an

Page 7 of 8 Pages acceptable level of connectivity due to the extremely low look-angles, and the contract was terminated eight months into the effort. Since then, there have been no other systems implemented that present a competitive option to the current satellite communication solution for Thule AB. In 2011, SES-GS was awarded a sole source contract (HC1013- 11-C-0102) to continue providing critical communications between Thule AB and Schriever AFB for five years and upgrade the bandwidth to a Digital Signal Level (DS3)(44.736 Mbps).

(4) A sole source award was made to SES-GS on May 3, 2016 for the same service for another term of five years, concluding May 2, 2021 via contract HC1013-16-C-0006.

(b) DISA conducted market research to assess whether the competitive landscape in the Thule region for wideband satellite communications currently offers other sources for the services sought between Thule AB and Schriever AFB. Market research indicated that the incumbent is the only viable provider of these requirements.

In November 2019, a Sources Sought was released as part of the market research for the re-compete of HC1013-16-C-0006. Four responses were received. All of the responses were determined to not be viable solutions due the antenna construction logistics posing significant time and cost risks.

In September 2020, a NOI was posted on beta.sam.org. Two responses were received and deemed not to be viable, due to the issues of antenna construction, and by the notification of one contractor who identified that as a result of emerging technologies they would presumably be able to propose a viable solution in approximately two years.

The follow-on is not anticipated to be a sole source contract. This requirement will begin the re-compete effort approximately two years before the final period of performance. In order to overcome this sole source environment, the Government will begin re-compete efforts within option year one of the contract lifecycle, which will permit a staged contractor response to this requirement. This will allow a prospective contractor opportunity to propose phased portions of the contract, invoice payment contingent on successful completion of a phase, and will allow for a non-incumbent contractor to begin site surveys, permit processes, and construction without the Government having to pay for additional services. It is also expected that within two years, emerging technologies will provide new alternatives to traditional geostationary satellite services.

The approval of this sole source award will allow the Government opportunity to research additional procurement options as well as emerging technologies in order to then perform a competitive recompete. Additionally, this contract will be structured with a base period of 12-months, followed by three, one-year options. With this construct, should the Government identify any other feasible alternatives to transition sooner, future options may not be exercised.