JA23-042 NSEP Priority Services 2 Redacted_7.6.2023.pdf

National Security/Emergency Preparedness Priority Service 2

JA23-042

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PoP Estimated Cost Base Period April 1, 2024 through March 31, 2025

OP1 April 1, 2025 through March 31, 2026 OP2 April 1, 2026 through March 31, 2027 OP3 April 1, 2027 through March 31, 2028 OP4 April 1, 2028 through March 31, 2029 OP5 April 1, 2029 through March 31, 2030 OP6 April 1, 2030 through March 31, 2031 OP7 April 1, 2031 through March 31, 2032 OP8 April 1, 2032 through March 31, 2033 OP9 April 1, 2033 through March 31, 2034

Additional Contract Ceiling for Emerging Technologies and Future Anticipated Projects

Total Life Cycle Amount April 1, 2024 through March 31, 2034

Verizon Contract PoP Estimated Cost

Base Period April 1, 2024 through March 31, 2025 OP1 April 1, 2025 through March 31, 2026 OP2 April 1, 2026 through March 31, 2027 OP3 April 1, 2027 through March 31, 2028 OP4 April 1, 2028 through March 31, 2029 OP5 April 1, 2029 through March 31, 2030 OP6 April 1, 2030 through March 31, 2031 OP7 April 1, 2031 through March 31, 2032 OP8 April 1, 2032 through March 31, 2033 OP9 April 1, 2033 through March 31, 2034

Additional Contract Ceiling for Emerging Technologies and Future Anticipated Projects

Total Life Cycle Amount April 1, 2024 through March 31, 2034

The total lifecycle amount for the NS/EP suite of contracts is FAR 52.217-8 will be included in the award and if utilized, would bring the total lifecycle amount to

4. IDENTIFICATION OF STATUTORY AUTHORITY:

Only one responsible source and no other supplies or services will satisfy agency requirements, 10 U.S.C.2304(c)(1). (FAR 6.302-1/DFARS 206.302-1).

5. DEMONSTRATION OF CONTRACTORS’ UNIQUE QUALIFICATIONS:

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(a) Description of events.

In 1994, three separate 10-year contracts were awarded to Microwave Communications, Inc (now Verizon); Sprint Communications Company, LP (now SFO LLC); and AT&T for GETS and SRAS services with follow-on contracts awarded in 2004 to the same contractors. Under an Interagency Agreement with DISA/DITCO, three separate sole-source contracts (HC1013-14-C-0001, HC1013-14- C-0002, and HC1013-14-C-0003) were awarded to AT&T, Verizon, and SFO LLC in 2014 to provide the GETS, WPS and SRAS capabilities. These three carriers have supported the legacy NS/EP requirements since the 1990s and have continuously expanded their networks from qualitative and quantitative perspectives related to NS/EP. They have invested in technology upgrades in their network moving from legacy to public switched telephone network to 5G. These infrastructure improvements have and will support secure priority communication services for all NS/EP users.

(b) Justification:

(1) Minimum Government requirements. The NS/EP program requires American owned business contractors to have nation-wide network coverage, as well as ownership and control of the telecommunications infrastructure on which current and future PS are based. Reuse of third-party owned, operated, and controlled facilities poses too much risk to the Government for mission critical telecommunications during natural and man-made disasters, up to and including nuclear war.

(2) Proposed sole source contractors. Based on market research and past acquisition history, only AT&T, SFO LLC, and Verizon can provide the network coverage, infrastructure, the PTS and NGN PS capabilities, the required continuity of services, and are American owned businesses. Using three sole source contracts with AT&T, SFO LLC, and Verizon, Priority Communication Services (PCS) achieves the highest PS transmission coverage across the United States. Additionally, awarding to three separate carriers ensures redundancy within GETS in support of COOP and Continuity of Government (COG). If congestion or blocking is encountered in one network, the call can be automatically routed through another network. Contracting with multiple nationwide long-distance carriers in the PSN is the only effective approach for providing NS/EP priority telecommunications services.

Through the existing contracts, the Government has made a significant investment to enhance the carrier network infrastructures to support priority NS/EP telecommunications. The NS/EP services leverage contractors' commercial networks, and the NS/EP network enhancements being maintained, operated, developed, and deployed are unique telecommunications services which customize carrier network components to meet the specific telecommunications needs of the NS/EP community.

The Government has invested billions of dollars since 1994. Awarding these services to another contractor would cost the Government additional billions to rebuild an infrastructure. Together, Page 6 of 9 Pages the AT&T, SFO LLC, and Verizon networks comprise the highest coverage of the Interexchange Carriers (IXC) transmission capacity throughout the United States.

Award of a GETS IXC contract to contractors other than AT&T, SFO LLC, and Verizon reduces the transmission coverage to approximately 20% thereby degrading NS/EP telecommunications and reducing the probability of call completion.

It would take a minimum of 5-8 years to enhance the infrastructure of other carriers to obtain NS/EP PS.

(3) Discussion regarding cause of the sole source situation. In the early 1990’s, the need for reliable telecommunications service in support of NS/EP missions was recognized.

The Government has taken steps to evolve the NS/EP program from providing users with additional routing options, through the GETS program to the latest PTS structure.

The need for these PTS services on a nation-wide and robust network led to sole source contracts with AT&T, Sprint, and Verizon to leverage the commercially owned PSN. The combination of AT&T, SFO LLC, and Verizon networks provides end-to-end priority communications on their networks and through interoperability agreements to satisfy NS/EP requirements of survivability and nationwide coverage.

The current NS/EP contracts were awarded as sole-source requirements to three carriers: AT&T, SFO LLC, and Verizon. The follow-on Fiscal Year 2024 NS/EP PS 2 must continue with the same three contractors as no other vendors have the network coverage, infrastructure ownership, and capability required by the NS/EP program.

Market Research demonstrates that no other American owned business communication service providers have nation-wide network coverage, as well as ownership and control of the telecommunication infrastructure on which current PS are based.

(4) Impact. The United States Government relies on NS/EP priority telecommunications to coordinate response and recovery efforts and, in severe conditions, to assist with COOP. This acquisition supports the CISA mission of providing requisite communications for continuing essential Government services in a COOP environment. Awarding the NS/EP services to another contractor would mean loss of these required capabilities and significant costs to the Government to rebuild an infrastructure. Furthermore, service would be degraded due to significant loss of transmission coverage that is currently provided by these three nationwide networks.

Degraded NS/EP telecommunications would cripple national leadership’s ability to communicate, thus severely impacting COOP. The current contracts with AT&T, SFO LLC, and Verizon provide robust, survivable, and resilient nationwide networks that the Government has leveraged by enhancing the infrastructure in fulfillment of NS/EP requirements.

Failure to contract for this support would leave the Government with a major NS/EP telecommunications shortfall as GETS, SRAS, and WPS would cease to operate on the networks. This NS/EP telecommunications shortfall would impact national leadership’s ability to respond to and recover from a terrorist attack or an act of war.

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GETS and SRAS are essential communications services for COOP and COG to allow for coordinating essential Government services, response and recovery efforts, and military situational awareness and response. During the September 11, 2001, terrorist attack, general public calls experienced a 15% call completion rate in certain areas, while GETS calls completed at above 95% in the same areas.

6. SAM.GOV ANNOUNCEMENT/POTENTIAL SOURCES:

A Request for Information (RFI) (822113934) was published in SAM.gov in January 2021 to identify potential sources that could meet the NS/EP requirements. A total of eight responses were received from the RFI, of which only three were qualified. Details of the market research are discussed in section 8 below. A synopsis detailing the intent to award three sole source contracts will be posted to Sam.gov, as required by FAR 5.2.

7. DETERMINATION OF FAIR AND REASONABLE COST:

In accordance with FAR 15.4, the contracting officer will rely upon information other than certified cost and pricing data for price comparisons to ensure that the cost to the Government is fair and reasonable for commercial support. In addition, the contractor’s proposed costs are subject to review by DITCO cost/price analysts, audit by Defense Contract Audit Agency auditors, and proposed subcontract costs are subject to field pricing reviews. Proposed labor hours will be subject to technical evaluation. These methods will provide the contracting officer with adequate information to ensure that the cost to the Government for this acquisition will be fair and reasonable. ECD has historic cost data for similar development services with the carriers and their vendors that provide similar support where those costs can be used as a basis for determination of fair and reasonableness.

8. MARKET RESEARCH:

Market research was conducted from September 2020 through May 2022 through internet searches, internal discussions, communications with contractors, and issuance of a RFI on SAM.gov.

The RFI (822113934) for telecommunication services was published in SAM.gov in January 2021. A total of eight responses were received from the RFI. The PCS program requires American owned business contractors to have nation-wide network coverage, as well as ownership and control of the telecommunication infrastructure on which current and future PS are based. Each response was assessed against baseline PTS components and seven additional capability requirements. Five of the eight responses did not meet the program requirements to control and own nationwide communication infrastructure.

Evaluation of the RFI responses and other market research revealed that three companies (AT&T, SFO LLC, and Verizon) were able to successfully address every RFI question and requirement, including ownership and control of the nationwide telecommunications infrastructure by the contractor on which current and future PS are based. ECD’s on-going

Page 8 of 9 Pages market research verifies that there have been no significant changes in the telecommunications industry since the issuance of the RFI.

Lessons learned have revalidated that the carrier contracts are the only way to leverage the commercially owned PSN to achieve a cost-effective interoperable NS/EP PS capability that is robust and survivable. AT&T, SFO LLC, and Verizon have supported the legacy NS/EP requirements since the 1990s and have continuously expanded their networks from a qualitative and quantitative perspective related to NS/EP. These infrastructure improvements have and will support secure PCS for all NS/EP users.

9. ANY OTHER SUPPORTING FACTS:

None.

10. LISTING OF INTERESTED SOURCES:

AT&T, SFO LLC, and Verizon.

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

THAT LED TO THE EXCEPTION TO FULL AND OPEN COMPETITION:

(a) Procurement History.

Contract Number Contractor Period of Performance Competitive Status HC1013-04-C-5001 MCI (dba

Verizon) 9/29/2004 - 3/31/2014 Sole Source

HC1013-04-C-5002 AT&T 3/1/2004 – 3/31/2014 Sole Source HC1013-04-C-5003 Sprint 4/1/2004 - 3/31/2014 Sole Source HC1013-14-C-0001 Sprint 4/1/2014 - 3/31/2024 Sole Source HC1013-14-C-0002 Verizon 4/1/2014 - 3/31/2024 Sole Source HC1013-14-C-0003 AT&T 4/1/2014 - 3/31/2024 Sole Source

(b) CISA/ECD will continue to monitor telecommunications technology advancements, Government requirements and industry evolutions to discern if future NS/EP PS can be acquired via full and open competition.

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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.

SIGNATURE:

TITLE/ORGANIZATION: ECD/Contracting Officer’s Representative, Program and Acquisition Management Branch

DATE:

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.

TITLE/ORGANIZATION: ECD, Associate Director PTS Subdivision

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

TITLE/ORGANIZATION: Contracting Officer/DITCO PL8231

SENIOR PROCUREMENT EXECUTIVE APPROVAL: I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief.

TITLE/ORGANIZATION: Senior Procurement Executive/DISA

PHONE: DATE:

ALL QUESTIONS REGARDING THIS JUSTIFICATION ARE TO BE REFERRED TO

Jessica D. Penick, 618-418-6377, jessica.d.penick.civ@mail.mil or Thuy Duong Le, 618-418- 6911, thuyduong.t.le.civ@mail.mil