N0018918PZ336_JA_18-048_-_MDREN.docx

DEPARTMENT OF THE NAVY

NAVSUP FLEET LOGISTICS CENTER NORFOLK

700 ROBBINS AVENUE, BUILDING 2B

PHILADELPHIA, PA 19111-5083

REFER REPLY TO: 270.3B

J&A Number: 18-048

JUSTIFICATION AND APPROVAL

FOR USE OF SOLE SOURCE (BRAND NAME)

1. Identification of Agency and Contracting Activity.

Requiring Activity: United States Naval Academy, ITSD 290 Buchanan Road, Annapolis, MD 21402-5045

Contracting Activity: NAVSUP Fleet Logistics Center (NFLC) Norfolk Contracting Department, Philadelphia Office, 700 Robbins Avenue, Building 2B, Philadelphia, PA 19111-5083.

2. Description of the Action Being Approved.

The U.S. Naval Academy ITSD Department has a sole source requirement for a base year plus two one year options that is to be awarded as a Firm-Fixed-Price (FFP) contract for the purchase of commercial ISP and High Speed Internet2 connection with the Maryland Research and Education Network (MDREN), (CAGE: 1HJR4, DUNS: 003256088) as described in paragraph (3).

3. Description of Supplies/Services (including the estimated value).

The proposed sole source acquisition is to purchase a base year plus two one-year options of commercial ISP and high speed Internet2 internet services at 3 Gigabits plus connectivity to MDREN through the Baltimore hub. Aside from providing faster internet connectivity, MDREN provides networking with other educational institutions and provides direct access to their libraries and databases allowing for a faster, more secure, and enhanced exchange of scientific and educational information which is necessary for research by the U.S. Naval Academy’s faculty and student body. The period of performance is a base period of 1 July 2018 to 30 June 2019 with two one-year option periods. The estimated dollar value is as follows:

Estimated Dollar Value

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

41 USC 1901 (e) (2) - A sole source acquisition under the authority of the test program for certain commercial items, as implemented by FAR 13.501(a).

5. Rationale Justifying Use of Cited Statutory Authority.

Only one source can satisfy this requirement. The proposed vendor, Maryland Research and Education Network (MDREN), is the only source that can provide the necessary fiber optic connection and networking to the USNA. MDREN is one of two providers for Internet2 services in the State of Maryland through its classification as the official Sponsored Education Group Partner (SEGP) for the State of Maryland. As such, MDREN provides advanced telecommunications services to institutions throughout the University System of Maryland and beyond to other colleges and universities throughout the state. MDREN connects University of Maryland members and other Maryland state universities, community colleges, private institutions to each other, the Internet, and Internet2. These services cannot be provided by any other vendor without substantial duplication of cost to the Government that is not expected to be recovered through competition and without an unacceptable level of risk.

The additional costs associated with transitioning to an individual SEGP within the State of Maryland would be in excess of [redacted] per year if the USNA went direct to MAX (Mid Atlantic Crossroads- the connector of services in the State of Maryland). These additional costs involve the USNA acquiring primary connections as well as back up connections which cost well over $[redacted] a year as a SEGP. In addition to all the necessary hardware, connection, and installation costs there are various fees associated with provider services. For example, the savings from MDREN are because they bundle services together. MDREN will provide access to Internet2, the regular Internet, and bring the service to the USNA using fiber optic cable. MDREN also provides two paths out of the USNA so that if the fiber optic cable gets broken, the USNA can go in the other direction and continue working.

The USNA is purchasing 3 Gigabits of Internet2 service, in addition to Internet and other ISP services. Firstly, MAX charges a $[redacted] membership fee before any services can be acquired. For Internet2 access, MAX offers 1 Gigabit service for $[redacted] annually or a 10 Gigabit service for $[redacted] annually. If the USNA wants a second connection just in case the first one fails, the price would double. If the USNA were to buy a 1 Gigabit connection to Internet2 from MAX, with a second connection in case the first one goes down, they would pay $[redacted] (Membership Fee) + $[redacted] (Actual Internet2 Service) + $[redacted] (Back-up Service) + $[redacted] (Estimated Internet service) + [redacted] (Back-up Service) = $[redacted], but since they USNA is purchasing 3 Gigabit service the $[redacted] (10 Gigabit) option is better, therefore they would pay $[redacted]. This is a third of the level of service being offered by MDREN.

Second and more importantly is MDREN is the only Interent2 provider in a 20+ mile radius offering the required fiber optic connections as well as on-site maintenance; MAX does not have fiber optic cable going to the USNA, therefore MAX would have to buy it and pass the cost along to USNA.

In addition to the duplication of costs, procuring these services from MAX would risk unacceptable delays in fulfilling the agency’s requirements due to downtime and outages while fiber optic connections are run and installed. The USNA currently receives MDREN IT services in a timely and acceptable manner. This minimizes unacceptable cost, technical, and schedule risks associated with an alternative source.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable.

The requiring activity was contacted by the Contract Specialist and there were discussions about other potential contractors that might provide this service; the USNA advised there are no other sources. The USNA advised not only does the service need to be serviceable by a local provider but more importantly the USNA required Internet2 service is provided on a state by state basis and is subscribed to and accessed within your organizations state. The results, as indicated in paragraph (5) show that no other provider can fulfill the requirement without unacceptable consequences and risk to USNA IT services.

Since this is a follow-on to N00189-16-P-Z315 that was awarded on 31 May 2016 a Sources Sought Synopsis was posted on NECO on 3 May 2018 and ended on 8 May 2018. At the end of the NECO posting two interested parties had responded. The information was submitted was reviewed by USNA who responded that neither source was able to provide the services required. Neither firm could provide all of the services needed to satisfy this requirement.

In accordance with FAR 5.201, a combined synopsis/solicitation will be posted to the GPE: http://www.neco.navy.mil/.

7. Determination of Fair and Reasonable Cost.

In accordance with FAR 13.5, The Contracting Officer at the NAVSUP Fleet Logistics Center Norfolk Contracting Department, Philadelphia Office will determine that the price negotiated for this acquisition is fair and reasonable.

8. Actions to Remove Barriers to Future Competition.

Pursuant to DFARS 213.501, “for non-competitive follow-on acquisitions of supplies or services previously awarded on a non-competitive basis, the additional documentation required by DFARS 206.303-2(b)(i) and the procedures at DFARS PGI 206.304(a)(S-70) need to be addressed.

DFARS PGI 206.303-2(b)(i)(A) requires the inclusion of the results of the sources sought synopsis; those results are detailed in paragraph 6. DFARS PGI 206.303-2(b)(i)(B) requires the approving official’s review of the previous justification to assist in the determination that the planned actions to remove any barriers to competition were completed. The previous J&A stipulated that any future requirements would be handled on a case by case basis, and that if other potential sources emerge, the Contracting Office will assess whether competition is feasible. The approving official has reviewed the prior J&A, and has considered the additional market research performed for this requirement, including the posting and results from the sources sought, and determines that the planned actions to remove barriers to competition have been completed. Thus, the requirements of DFARS 213.501, DFARS 206.303-2(b)(I); DFARS PGI 206.303-2, and DFARS PGI 206.304(a)(S-70) have been satisfied. Nevertheless, the circumstances causing the requirement are unchanged and the requirement is still sole source.

Actions to remove future barriers to competition will be continuing market research by the requiring activity and contracting office, and the future publication of sources sought synopses.

9. Contracting Point of Contact

The point of contact at NAVSUP Fleet Logistics Center (NFLC) Norfolk Contracting Department, Philadelphia is Nicholas Milillo (Contract Specialist) (215) 697-0321, nicholas.milillo@navy.mil.

SOURCE SELECTION INFORMATION – SEE FAR 2.101 and 3.104 image1.png