N0060417FD070_1.15_MAC_Order_Exception_to_Fair_Opportunity_redact.pdf

SOURCE SELECTION INFORMATION – SEE FAR 2.101 and 3.104

LSJ# FY17-027

1. IDENTIFICATION OF AGENCY AND CONTRACTING ACTIVITY: This is a Justification for an Exception to Fair Opportunity. The requiring activity is the United States Pacific Command (USPACOM); the contracting activity is the Naval Supply Systems Command (NAVSUP) Fleet Logistics Center (FLC) Pearl Harbor (PH).

2. NATURE/DESCRIPTION OF CONTRACT ACTION: This acquisition is conducted under the authority of 10 U.S.C. 2304a through 2304d. This is a limited source action to be awarded as a new task order and/or modification of an existing order to the other than small business identified in paragraph 3 below. The placement of a firm, fixed price order is anticipated.

3. DESCRIPTION OF REQUIRED SUPPLIES/SERVICES: The proposed acquisition is to ensure PACOM continues to have the necessary lines of communication needed to support its mission at home and aboard. It is intended to acquire 12 months of wireless services with New Cingular Wireless PCS, LLC. doing business as (DBA) AT&T, to include, voice, data, text, long distance and roaming services, along with wireless devices, for the period of 01 October 2017 thru 30 September 2018, at the estimated value of

4. IDENTIFICATION OF THE EXCEPTION TO FAIR OPPORTUNITY RATIONALE

AND/OR DEMONSTRATION OF CONTRACTOR’S UNIQUE QUALIFICATIONS: The statutory authority which permits not providing each awardee a fair opportunity to be considered for each order exceeding $3,000 issued under a multiple award contract is 10 U.S.C. 2304c, as implemented by FAR 16.505(b)(2).

The order must be issued on a sole-source basis in the interest of economy and efficiency as a logical follow-on to an order already issued under the contract, provided that all awardees were given a fair opportunity to be considered for the original order (FAR 16.505(b)(2)(i)(C)) .

The mandatory wireless vehicle for the Department of the Navy (DoN) identified as Spiral II was extended for 6 months IAW FAR clause 52.217-8, Option to Extend Services. The contact extends till 07 November 2017 with no set date for the implementation of Spiral III (the successor contract vehicle). According to the extension notice provided by the Procuring Contracting Office (PCO), NAVSUP FLC San Diego, current task orders may exercise their 6 month extension if applicable requirements have been met, or execute a 1 year task order (TO).

The current TO N00244-12-D-0014-NQ01 ends on 30 September 2017. The TO includes a base of 1 year and 4 one year options, in which fair opportunity was provided amongst all DoN Wireless Multiple Award Contract (MAC) holders: AT&T, Sprint and Verizon. All three

DEPARTMENT OF THE NAVY

NAVSUP FLEET LOGISTICS CENTER PEARL HARBOR

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IN REPLY REFER TO

provided technically acceptable proposals, with AT&T being the technically acceptable lowest price. FAR clause 52.217-8, Option to Extend Services, was included in the task order, but was not evaluated and therefore is not an alternative to extend services. If not for the requirements of FAR 17.206 which requires the evaluation of options, this requirement would have been fulfilled by the execution of FAR clause 52.217-8, Option to Extend Services.

In 2011 requiring commands were introduced to a similar situation during the transition from Spiral I to Spiral II wireless contract. Historically commands were encouraged to issue orders through fair opportunity, requiring detailed evaluation criteria and supporting documentation. In addition, to ensure no lapse in service, commands had to adequately prepare documentation to modify their NMCI contract to ensure new phones could easily access Microsoft Outlook.

PACOM intends to keep their existing devices to avoid potential NMCI cost of new devices, with an estimated cost savings of The transition from one carrier to another can be a lengthy and detailed process, consuming government resources. PACOM has historically had issues with device compatibility, for example GSM versus CDMA, keeping the current wireless carrier along with the same devices will ensure a smooth transition.

In 2011 due to the delay in the award of the Spiral II contract, a competitively awarded six month extension was issued. Upon expiration of the extension commands were notified that the Spiral II wireless contract had not yet been awarded, but instead were to issue competitive one year task orders off the one year wireless bridge contract. Finally, commands were then required to competitively award task orders off the Spiral II wireless contracts. The man hours, modifications, and multiple transitions caused lapse in service and frustration from end users both at home and deployed. Due to the unknown conditions of the Spiral III wireless contract and the historical nature of these contracts, it is considered to be the Government’s best interest to remain with the current wireless carrier during the one year timeframe, allowing for proper solutions to be implemented prior to issuance of a multiple year task order in the future.

The last option year totaled , in comparison the estimated value for the one year follow-on is . There are minimal changes from the previous task order with the largest change being an increase of 15 devices under ELIN E01 and supporting international services. Since E01 and international services were included in the original competitive solicitation and market research indicates AT&T continues to honor its competitive pricing, the logical follow-on is considered appropriate based on scope, performance period and estimated value.

5. DETERMINATION OF FAIR AND REASONABLE COST:

The services required includes contract established ELINs which were determined to be fair and reasonable or competitive ELINs which were considered to be fair and reasonable upon establishment of the task order N00244-12-0014-NQ01 through fair opportunity. Any further determination will be made using the procedures in FAR part 13, to ensure the order represents the best value to the Government.

6. DESCRIPTION OF MARKET RESEARCH:

Market research indicates that the use of the NAVSUP FLC San Diego wireless contract is mandatory for the Department of the Navy (DoN). The requiring activity and contracting activity have conducted market research among the multiple award contractors. Market research was conducted amongst schedule holders, which revealed that schedules were extended by 6 months with no changes to established pricing. Additionally the current contract vehicle (Spiral II) is set to expire 07 November 2017, with limited information published on its successor (Spiral III) and its anticipated implementation date.

7. ANY OTHER SUPPORTING FACTS: This procurement uses a MAC and will be solicited and awarded in accordance with FAR Subpart 16.5.

8. ACTIONS TAKEN TO REMOVE BARRIERS TO COMPETITION: All future requirements will be handled on a case-by-case basis.

9. CONTRACTING POINT OF CONTACT: The point of contact at NAVSUP FLC Pearl Harbor is Erin Chapman Code 203 at commercial 808-473-7505 or by e-mail at Erin.r.chapman1@navy.mil.

LSJ# FY17-027

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION

I certify that the facts and representations under my cognizance which are included in this Justification and its supporting acquisition planning documents, except as noted herein, are complete and accurate to the best of my knowledge and belief.