Justification and Approval - Supply Chain Catalog - Redacted_Redacted.pdf

Federal Communications Commission FAR Subpart 13.5 Justification and Approval

“Source Selection Information – see FAR 2.101 and 3.104”

1. Identification of the agency and contracting activity.

a. Federal agency and contracting activity: FCC/EAC.

• David G. Gottshall, Contracting Officer

• Federal Communications Commission

• 45 L Street, N.E., Washington, D.C. 20554

• david.gottshall@fcc.gov

• (202) 418-1659

b. FCC Requiring Activity. Wireline Competition Bureau

c. Program Office information.

2. Nature and/or description of the action being approved.

a. Acquisition purpose and objectives. This is a new requirement that will be awarded utilizing a Firm Fixed Price (FFP) contract pursuant FAR part 13.5 Simplified Acquisition Procedures. This document justifies the placement of work under a new order of four (4) phases of service.

b. Project background. This work is necessary pursuant to the Commission’s requirement to establish a Secure and Trusted Communications Networks Reimbursement Program to reimburse expenses incurred by advanced communications service providers with two million or fewer customers to permanently remove, replace, and dispose of covered communications equipment or service that poses a national security risk. See Secure and Trusted Communications Networks Act of 2019, Pub. L. No.

116-124, § 4, 134 Stat. 158, 160-66 (2020) (codified at 47 U.S.C. § 1603) (Secure Networks Act.

3. Description of the supplies or services required to meet the agency’s needs (including the estimated value).

a. Project title. Contract to Assist the Federal Communications Commission with Developing a Report and Catalog of Eligible Expenses for the Secure and Trusted Communications Networks Reimbursement Program.

b. Project description.

Background:

On March 12, 2020, the President signed into law the Secure Networks Act, which, among other measures, directs the Commission to establish a reimbursement program for the removal, replacement, and disposal of communications equipment or services posing national security risks, i.e., covered communications equipment or services. Congress expects the initial list of covered equipment and service providers, at a minimum, to include equipment and services provided by Huawei Technologies Co. Limited and Zhongxing Telecommunications Equipment Corporation (ZTE). H. Report No. 116-352, at 13 (2020).

The equipment and services provided by these suppliers relevant to the proposed reimbursement program are typically found, but not limited to, the networks of mobile wireless communications providers. The FCC is currently in the process of considering rules for creating the reimbursement program outlined in the Secure Networks Act, WC Docket No. 18-89.

The Requirement

To help identify reimbursable costs with as much specificity as possible, provide guidance to entities seeking reimbursement, streamline the reimbursement process, and increase accountability, the Commission seeks the services of an outside Contractor with field expertise and relevant experience to produce: (1) a report detailing steps required in transition networks and sources of available replacement equipment and services along with an expected timeline for each step (Report); and (2) a catalog of estimated expenses eligible for reimbursement (Catalog). To produce the Report and Catalog, the Commission expects a contractor would engage, through confidential interviews and other means, radio frequency and structural engineers, suppliers, support companies, manufacturers, attorneys, and network engineers.

The Catalog would be publicly available and need to account for the cost of available replacement equipment and services along with the additional costs associated with transitioning a network, e.g., drive-testing to determine baseline coverage, installing new network cores, modifying or constructing new cell sites, testing and optimizing network performance, migrating traffic, and decommissioning covered equipment and services. The Catalog would need to include predetermined estimates or ranges for reimbursable cost for the commonly incurred categories of expenses. The Catalog would not be a definitive list of all reimbursable expenses but instead a means of facilitating the reimbursement process by identifying the commonly incurred types of expenses eligible for reimbursement. The Contractor will need to provide supporting information to enable the Commission to better understand how the costs in the Catalog were derived and whether systemic and programmatic risks exist with meeting transition deadlines.

The draft Catalog would be due to the Commission by [TBD]. The draft Catalog will be released for public comment, and then finalized. The Contractor would work with the Commission to assess any comments filed and create as final Catalog by [TBD]. The services may be extended for three (3) optional 60-day periods, as necessary, for additional recommendations.

With these considerations in mind, the Contractor shall develop a Catalog capturing all the possible reasonable costs associated with the transition. The following potential costs have been identified by interested parties:

• Drive testing to determine baseline • Evaluate spectrum and backhaul coverage capabilities

• Order new equipment • Install new network cores

• Evaluate existing cell site modifications

• Evaluate need for new backhaul links

• Lease space on or build new towers • Obtain necessary permitting/approvals

• Install Radio Access Network equipment

• Test and optimize network

• Migrate traffic to new network • Decommission old equipment

• Engineering services • Legal services

• Installation services • Labor

• Maintenance service contracts

Incorporation of these items is not meant to be a determination that all these costs are reasonable costs or that these items are all inclusive, but it captures the breadth of costs the Contractor shall consider in developing the cost model under this task. In developing the Catalog, the Contractor shall consider and include both hard costs (e.g., new equipment) and soft costs (e.g., legal and engineering services). The Contractor shall ensure the Catalog includes a robust classification system that will allow the Commission to analyze the costs at various levels of granularity.

• Requirement type.

Research & development (R&D) R & D support services X Support services (non-R&D) Supplies/equipment Information technology (IT) Construction Architect-engineer (A & E) services Design-build Other (specify): ____________________

• Type of action.

X New requirement Follow-on Other (specify): ______________________

• Proposed contract/order type.

X Firm-fixed-price Other fixed-price (specify, e.g., fixed-price award-fee, fixed-price incentive-fee): __________ Cost-plus-fixed-fee Other cost reimbursement (specify, e.g., cost-plus-award-fee, cost-plus-incentive-fee): ___________

Time and materials Indefinite delivery (specify whether indefinite quantity, definite quantity, or requirements): ___________ Other (specify): ___________

• Acquisition identification number. N/A

Total estimated dollar value and performance/delivery period.

The base period for the contract is two months (November 15, 2020 to February 15, 2021), with options to extend the period of performance with three (3) additional two-month periods. The total possible period of performance is nine

(9) months (November 15, 2020 to Aug 15, 2021). The total estimated dollar value for the base period is $ and for the entire period of performance with all option periods exercised is $ .

4. Identification of the statutory authority permitting sole source acquisition.

This acquisition is conducted under the authority of section 4202 of the Clinger-Cohen Act of 1996 (41 U.S.C. 1901).

This acquisition is conducted under the authority of the Services

Acquisition Reform Act of 2003 (41 U.S.C. 1903).

X This acquisition is conducted under the authority of 41 U.S.C. 1901 and employs a rationale comparable to that available under 41.U.S.C. 3304(a)(2)

(FAR 6.302-2).

5. Demonstration that the proposed contractor(s) unique qualifications or the nature of the acquisition requires use of the authority cited.

a. Name and address of the proposed contractor(s).

Widelity, Inc.

4031 University Drive Fairfax, VA 22030

b. Nature of the acquisition and proposed unique qualifications of the contractor(s).

Unusual and Compelling Urgency (FAR 6.302-2) - This is a time-critical acquisition resulting from need to implement a reimbursement program required by Congress as soon as possible. Widelity has demonstrated exceptional adaptability, expertise, longevity, past performance and capability. They are well versed in the development and use of a catalog and the implications of the usage by entities as they navigate the reimbursement process. Widelity wrote the original Widelity Report and the Catalog of Eligible Expenses and Estimated Costs, and the update, for the broadcast repack authorized by the Middle-Class Tax Relief and Job Creation Act of 2012. The report and the catalog successfully served as the basis for over 1,000 Television and MVPDs to plan for and submit budgets and expenses in the repack process.

Additionally, Widelity has supported the FCC as it considered many aspects of the Broadcast Incentive Auction. In addition to their report and catalog, and the catalog updates, Widelity provided ongoing insights and advisory service to the FCC as the agency proceeded with planning and decision-making process.

6. Description of the efforts made to ensure that offers are solicited from as many potential sources as practicable. Indicate whether a FedBizOpps notice was or will be publicized as required by FAR Subpart 5.2 and, if not, which exception under FAR 5.202 applies.

Request For Information (RFI): Pursuant FAR 15.201 (e), an RFI titled “Supply Chain Reimbursement Program Catalog of Eligible Expenses” was issued by the Federal Communications Commission, Enterprise Acquisitions Center, on September 9, 2020 for 13 days. Widelity is the only vendor expressing an interest in this RFI. It is therefore an assumption that only one responsible source is interested in this project, since it is this survey of the marketplace that confirms our assumptions regarding the capability of industry to meet our needs.

7. Determination by the Contracting Officer that the anticipated cost/price to the Government will be fair and reasonable.

The anticipated cost will be considered fair and reasonable based upon the following:

Reflects fair market value or total allowable cost of performance by a well-managed, responsible contractor plus reasonable profit; Realistic in contractor’s ability to satisfy terms. Cost is reasonable based on the historic data of this agency’s procurement of like products and services.

8. Description of the market research conducted (see FAR Part 10) and the results, or a statement of the reasons market research was not conducted.

Market research conducted pursuant to FAR Part 10 via a Request for Information (RFI).

Refer to Item 6 above regarding RFI.

9. Any other facts supporting the use of the sole source procedure.

This is a time-critical acquisition resulting from need to implement a reimbursement program required by Congress as soon as possible. To develop a reimbursement program, it is critical to develop a cost model and cost allocation methodology to ensure the program results in an equitable distribution of costs to programs. The first step when allocating costs is to identify the cost objects for which the organization needs to separately estimate the associated cost. Identifying specific cost objects is important because the organization cannot allocate costs to something that is not yet known.

Widelity has demonstrated exceptional adaptability, expertise, longevity, past performance and capability in developing such models and methods.

10. Listing of sources, if any, that expressed, in writing, an interest in the acquisition.

Refer to Item 6 above regarding RFI.