06_J&A_FBO.pdf

JUSTIFICATION FOR OTHER THAN FULL AND

OPEN COMPETITION (OTFAOC)

Federal Acquisition Regulation (FAR) Part 6 Justification & Approval (J&A), Supporting Procurements under FAR Part 12, and FAR Part 15

Purchase Request Number: N5014219MP00028 Contract Number: To be determined Task/Delivery Order Number: Not applicable Procurement Title: Fleet Logistics Center (FLC) Private Branch Exchange (PBX) Elimination

Statutory Authority: 10 U.S.C.2304(c)(1). (FAR 6.302-1/DFARS 206.302-1)

Justification for OTFAOC Number: JA19-116

Upon the basis of the following justification, I, as Procuring Activity Competition Advocate, hereby approve the use of other than full and open competition of the proposed contractual action pursuant to the authority of 10 U.S.C.2304(c)(1) and FAR 6.302-1/DFARS 206.302-1.

1. REQUIRING AGENCY AND CONTRACTING OFFICE:

Requiring:

Naval Computer and Telecommunications Area Master Station-Pacific (NCTAMS-PAC) 500 Center Street Building 105 Wahiawa, Hawaii 96786

Contracting:

Defense Information Technology Contracting Organization (DITCO) PAC (PL7) 477 Essex Street, Bldg 77 Room 180 Joint Base Pearl Harbor, HI 96860-5815

2. NATURE/DESCRIPTION OF ACTION(S): The nature of this requirement is to issue a new firm fixed price (FFP) contract award using fiscal year 2019 Operations and Maintenance funding to provide a compliantand accredited voice solution that is an extension of the existing Hawaii network for the FLC. The period of performance will be within six months after contract award.

3. DESCRIPTION OF SUPPLIES/SERVICES: On June 9, 2017, Hawaii Network Services (HNS) was awarded to AT&T as a FFP order, using the fair opportunity process underFAR

16.5 (HC1019-17-F-0025) to provide Voice over Internet Protocol/Unified Communications (VoIP/UC) services to Defense Information Systems Agency (DISA) and DISA’s mission partners throughout the state of Hawaii. This requirement is to extend AT&T’s existing network, currently being provided under HNS, to provide a compliant and accredited voice solution for FLC on Pearl Harbor and replace the legacy Intertel PBX system. The requirement will consist of a build out of new infrastructure for VoIP/UC servers and associated fiber optic cabling as required to extend AT&T’s proprietary network. The Navy’s infrastructure must be compliant with AT&T’s HNSsolution and interoperate with various AT&T servers and routing protocols built within the HNS environment. This

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FLC Private Branch Exchange (PBX) Elimination-JA19-116 requirement includes connectivity to the proprietary network owned and operated by AT&T.

The anticipated detrimental effects to the mission if not awarded to AT&T, include security vulnerability, denial for Authority to Operate (ATO) and Authority to Connect (ATC). The Navy’s current infrastructure includes legacy Private Branch Exchange (PBX) systems that are no longer supportable by the manufacturer and must be retired. Mission critical services may be impacted if existing services are not transition to an IP based network.

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). (FAR6.302- 1/DFARS 206.302-1); The uniqueness of this sole source requirement includes not only connectivity, but also complete integration into the proprietary network owned and operated by AT&T.

5. DEMONSTRATION OF CONTRACTOR’S UNIQUE QUALIFICATIONS:

(a) Description of events.

After fair opportunity competition under the Global Network Services (GNS) multiple award contract, HNS was awarded to AT&T as a FFP order (HC1019-17-F-0025) to provide VoIP/UC services to DISA and DISA’s mission partners through-out the state of Hawaii on June 9, 2017. This new requirement includes complete integration into the proprietary network owned and operated by AT&T. This requirement is to provide edge infrastructure that will be a part of AT&T’s HNS network. The anticipated detrimental effects to the relevant mission if the source is not limited to AT&T include security vulnerability, denial for ATO and ATC.

(b) Justification.

(1) Minimum Government requirements. AT&T was awarded order HC1019-17-F-0025 to be the primary provider of Hawaii’s Department of Defense voice and data network. AT&T has sole authority over any extensions of the AT&T proprietary network or build-out of edge infrastructure. Any vendor, other than AT&T, would need authorization from AT&T to operate on its proprietary network. This restriction prevents the Navy from fulfilling this new requirement under full and open competition.

(2) Proposed sole source contractor. AT&T as the sole provider for VoIP/UC services is the only logical solution at this time due to the existing infrastructure in Hawaii.

AT&T has established and maintained a proprietary virtual network operations center and Network Management System to manage, provision, and monitor VoIP/UC services.

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(3) Discussion regarding cause of the sole source situation. HC1019-17-F-0025 was competitively awarded to AT&T as the sole provider of VoIP/UC services to DISA and DISA’s mission partners through-out the state of Hawaii.

(4) Impact. The existing PBX system supporting the Fleet Logistics Center is beyond the manufacturer lifecycle support and is not Joint Interoperability Test Command compliant. The PBX system cannot be repaired, upgraded or expanded due to its unaccredited status. The potential loss of phone services for this critical Navy asset would be detrimental and having an adverse impact to the warfighters throughout the Indo-Pacific region.

6. FEDBIZOPPS ANNOUNCEMENT/POTENTIAL SOURCES: A sources sought notice was posted to FedBizOps on 8 May 2019 and all responses were due by 28 May 2019.

Three businesses responded to a sources sought advising that they could complete VoIP/UC installation; however, none of the businesses were authorized by AT&T to integrate and operate on AT&T’s proprietary network.

7. DETERMINATION OF FAIR AND REASONABLE COST: The contracting officer will determine the anticipated prices are fair and reasonable. Since competitive quotes will not be obtained, price reasonableness will be determined in accordance with FAR13.106- 3(a)(2):

using market research, comparison of the proposed price with prices found reasonable on previous purchases, current price lists and/or comparison with similar services in a related industry, and comparison to the independent Government estimate. Additionally, a technical evaluation will be included.

8. MARKET RESEARCH: Market research concludes that this requirement can only be met by one source, AT&T, a large business. The uniqueness of this sole source requirement includes not only connectivity but also complete integration into the proprietary network owned and operated by AT&T. As the sources sought concluded, there are no other contractors capable of meeting the Governments need at this time due to the AT&T priority network.

Alternative strategies were considered including building out the Navy’s core along with edge sites and/or leveraging existing Basic Purchase Agreement contracts to build out the Navy’s edge sites. Both alternative results were infeasible to implement due to the uniqueness of having to integrate any new edge infrastructure to the existing network owned and operated by AT&T, whereby any new installation would essentially be an extension of AT&T’s existing network.

9. ANY OTHER SUPPORTING FACTS: Based on current market research, dated December 2018 – May 2019, it has been determined that only the aforementioned solution provided by AT&T, can fully support the Government’s need. This requirement is for connection to a proprietary network owned and operated by AT&T and no competitor functional replacement products exist in the market at this time to meet the Government's need. The Government will continue to conduct market research to determine if there are changes in the market place that would enable future competitive actions, i.e. there are similar products and/or product support in the marketplace that provides the same functionality, the original equipment manufacturer releases ownership rights of product, or it is economically feasible to procure a new system.

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10. LISTING OF INTERESTED SOURCES: Three (3) businesses responded to the sources sought from May 2019 advising that while they could complete VoIP/UC installation that supports the acquisition of AT&T services, none of the businesses demonstrated that they could actually integrate into and operate on AT&T’s proprietary network.

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

THAT LED TO THE EXCEPTION TO FULL AND OPEN COMPETITION:

In 2017 AT&T was competitively awarded an order to provide VOIP/UC services. The required new PBX equipment and installation services must fully integrate into AT&T’s network, essentially extending the network to the customer premise. Since the Government requires the new VoIP/UC solutions to be absorbed by the HNS program and AT&T is the sole provider of VOIP/UC services to MILDEPS on the island of Oahu, other sources are not an option at this time. Additionally, the Government will continue to evaluate potential transition approaches as part of the Government’s regular life cycle refresh. If the Government identifies a beneficial solution that can achieve its goals, every effort will be made to compete it to the maximum extent practicable.

12. REFERENCE TO THE APPROVED ACQUISITION PLAN (AP):

In accordance with DISA Acquisition Regulation Supplement 7.103(S-90)(1), an AP is not required.