Justification and Approval (Redact)_Redacted.pdf

DEPARTMENT OF THE NAVY

NAVSUP FLEET LOGISTICS CENTER NORFOLK

1968 GILBERT STREET SUITE 600

NORFOLK VA 23511-3392

IN REPLY REFER TO

J&A: 22-047

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Identification of Agency and Contracting Activity.

Requiring Activity: Naval Computer and Telephone Area Master Station (NCTAMS) Atlantic (LANT) 9625 Moffett Avenue Norfolk, VA 23511

Contracting Activity: Naval Supply Systems Command (NAVSUP) Fleet Logistics Center (FLC) Contracting Department, Code 200 1968 Gilbert Street, Suite 600 Norfolk, VA 23511-3392

2. Description of the Action Being Approved.

This is a sole source action to be awarded as a new Indefinite Delivery Indefinite Quantity (IDIQ) Firm Fixed Price (FFP) contract to Verizon Federal, Inc. (Verizon). The contractor will be required to provide on-site technician services required to support the integrated, switched voice and data telecommunications services via Central Office-based facilities to defense activities’ Rate Demarcation Points day-to-day operations and maintenance of the services ordered herein at the Philadelphia Naval Business Center and NSA Mechanicsburg. Voice and data communications services are provided to NSA Philadelphia, NBC Philadelphia, NSA Mechanicsburg, and tenant commands by the Naval Computer and Telecommunications Area Master Station, Atlantic (NCTAMS LANT).

The instant requirement is a follow on action to contract number N0018917DZ049, currently performed by Verizon, a large business, which was solicited under full and open competition and resulted in receipt of one (1) proposal. The current contract expires on 30 September 2022. This requirement will be awarded in accordance with FAR Part 12 – Acquisition of Commercial Items and FAR Part 15 – Contracting by Negotiation.

3. Description of Supplies/Services.

Department of the Navy (DON) provides and maintains the telecommunication outside plant (OSP) network infrastructure delivering services from the RDP to tenant command buildings at NSA Philadelphia, NBC Philadelphia, and NSA Mechanicsburg. The existing network infrastructure (copper pairs) do not support the tenant's mission requirements. As a result, NCTAMS LANT's technical solution was to utilize Centrex ISDN BRI service at the necessary sites. ISDN BRI provides for two (2) simultaneous voice connections over existing copper pairs. ISDN splits the traditional copper telephone line into multiple digital channels. The channels operate concurrently on a single copper line, allowing multiple phones to make and receive calls simultaneously using on physical line. The Contractor must provide ISDN BRI services at each location to support the Governments' mission.

Source Selection Information – See FAR 2.101 and 3.104

Task/Delivery Orders under the prospective IDIQ contract will be funded utilizing Navy Operations & Maintenance (O&MN) of the fiscal year in which each Task/Delivery Order is issued.

4. Statutory Authority Permitting Other Than Full and Open Competition.

The statutory authority permitting other than full and open competition is 10 U.S.C. 2304(c)(1) - the supplies or services needed by the agency are available from only one responsible source and no other type of supplies or services will satisfy agency requirements, as implemented by FAR 6.302-1.

5. Rationale Justifying Use of Cited Statutory Authority.

The required services are provided by a dedicated infrastructure beyond standard commercial demarcation points that was designed and installed by Verizon. The existing network infrastructure (copper pairs) does not support the tenant's mission requirements. As a result, NCTAMS LANT's technical solution was to utilize Centrex ISDN BRI service at the necessary sites. ISDN BRI provides for two (2) simultaneous voice connections over existing copper pairs. ISDN splits the traditional copper telephone line into multiple digital channels. The channels operate concurrently on a single copper line, allowing multiple phones to make and receive calls simultaneously using on physical line.

The contractor must have the capability to provide the required ISDN BRI services at each location to support the Governments' mission.

Additionally, the contractor must have the capability to provide Automated Message Link (AML), also known as Simplified Message Desk Interface (SMDI), features, and associated local channels (including modems) for control and operation of Automated Attendant and Voice Mail systems. Without AML, the Government will not offer voice storage and forward messages to command tenants. Verizon is the only source capable of providing the required follow-on support for these specified services without an unacceptable delay and duplication cost. Verizon, the Local Exchange Carrier (LEC) furnishes exchange telephone services for the location in which services are required.

Verizon currently provides required integrated, switched voice and data telecommunications services via Central Office-based facilities to defense activities RDP at NSA Philadelphia, PA, NBC Philadelphia, PA and NSA Mechanicsburg, PA.

Operational Impact:

It is imperative that the manufacturer who designed and installed the infrastructure currently providing the required services continues to provide these services. If any other contractor attempted to provide the required services, they would have to resell Verizon services as a Competitive Local Exchange Carrier (CLEC) over Verizon infrastructure. Not only would Verizon have to approve of a CLEC, which to date no such agreements have been successfully negotiated, but a CLEC cannot support the required ISDN BRI service, the analog circuit to support the existing Octel Voice Mail Systems, on-site technician, or telephone management system by the required date. Use of any vendor other than Verizon would create the need for two (2) systems, two (2) DSN connections (which DISA will not support), two (2) sets of long-distance trunks, two (2) voice mail systems and create an environment where only like telephones could four-digit dial each other. This duplication of services is not supported by NCTAMS LANT, DIAA or NAVSUP Headquarters and is estimated to cost the Government in excess of an additional that would not be recouped through competition.

The history of the contract action is as follows, contract N00189-15-D-Z002 was solicited and awarded as a sole source action to Verizon Federal Inc. (Verizon). Verizon is the Local Exchange Carrier (LEC) for this area and it was determined that no other contractor’s had access to a Central Office/cable plant with a major switch and the timeline was too short to allow for a contractor to build their own infrastructure. During the pre-award phase of the previous requirement, contract N00189-17-D-Z049, market research was conducted to determine whether the barriers to competition had been removed. The requirement was solicited as full and open competition as the market research indicated that was capable of successfully performing the required services. Communications with the contractor lead the Contracting Officer to believe that the barriers had been removed. The previous acquisition received only one (1) response to the solicitation and the resulting contract was awarded to Verizon Federal Incorporated under contract N0018917DZ049 on 15 March 2017 in the amount of $23,080,816.38. stated that they would be unable to comply with the billing and invoicing procedures as required by the solicitation.

The Government is currently working to improve competition by replacing all of the existing TDM telephony services with Voice Over IP protocol/Unified Communication system within the next three

(3) years. There is insufficient time and resources to install Government owned facilities to replace the network owned and operated by Verizon before the UC system is fielded. Once the Voice Over IP protocol/Unified Communication system is fully realized, the requirements of this contract will be greatly reduced or eliminated.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable, including a Description of Market Research, if applicable, and a List of Interested Sources, if any.

In accordance with PGI 206.302-1(d), a Sources Sought Notice (SSN) was issued on onto SAM.GOV 03 November 2021 and was emailed directly to potential vendors on 09 November 2021 to aid in market research and to determine if any companies were eligible to provide these services. Three (3) timely responses to the sources sought were received via email on 18 November 2021 from

Technical analysis of the information provided in the capability statements submitted by determined that the submission did not provide enough information to demonstrate the vendor’s capability to support the fundamental requirement. ’s capability statement failed to demonstrate any work specific to the Performance Work Statements (PWS). The Technical Point of contact (POC) advised that provides end-to-end management services (i.e., network administration, adding IT, electrical run, and performing radar repair); however, the services are not similar and specialize in a different area. capabilities statement reference wireless & mobile device support, voice installation, video/teleconferencing installation, cable/fiber installation, U.S. Air Force radar towers. Based on the information provided, the Technical POC cannot make a determination that is capable of delivering the required services.

Technical analysis of the information provided in the capability statements submitted by determined that the submission did not provide enough information to demonstrate the vendor’s capability to support the entire requirement. ’s capability statement failed to demonstrate any work specific to the Performance Work Statements. The Technical POC advised that provides telecommunication services;

however, the services are not similar. Per the company, the Centrex services request by NAVSUP is sunset or grandfathers, excluding all providers except the incumbent.

recommends that bidders propose functionally equivalent and future-minded solutions instead of the requested Centrex services. NCTAMS LANT will retain existing services until the Department of the NAVY transition to Voice over IP (VoIP) services. Based on the information provided, the Technical POC cannot make a determination that is capable of providing the required services.

Technical analysis of the information provided in the capability statements submitted by determined that the submission did not provide enough information to demonstrate the vendor’s capability to support the entire requirement. ’ capability statement failed to demonstrate any work specific to the Performance Work Statements. The Technical POC advised that offers a Unified Collaboration environment ( ) for the DoD community; however, the services are not similar and specialize in a different area (Unified Communication infrastructure).

The solution brings together voice, video, instant messaging, presence, and conferencing to let users collaborate. The company also references IP-enabled Call Control (Local Session Controller) with TDM Switch as a solution. Based on the information provided, the Technical POC cannot make a determination that Cisco is capable of providing the required services. Based on these reviews, a determination was made that none of the responders possess the technical capability to perform the required tasks and meet the government’s need.

On 09 November 2021, the SSN was emailed directly to Verizon, the incumbent contractor. On 15 November 2021, Verizon confirmed their interest in the follow on action but would be unable to provide a capabilities statement. Although no capabilities statement was received in response to the sources sought notice, due to Verizon’s status as the only Local Exchange Carrier (LEC) for this area who furnishes exchange telephone services, the incumbent is determined to be capable of supporting the required services. Additionally, there are no authorized reseller agreements between Verizon and other companies; Verizon remains the only company capable of providing these services.

No additional market research was conducted because it is not practicable, for the reasons discussed in paragraph 5 above, for any company other than Verizon to provide the required supplies and services.

The requirement will be synopsized and the solicitation will be posted on the Government Point of Entry (GPE), BetaSAM.gov.

7. Determination of Fair and Reasonable Cost.

The Contracting Officer has determined that the anticipated cost to the Government of the supplies/services covered by this J&A will be fair and reasonable.