OSP CJA_redacted.pdf

DEPARTMENT OF THE NAVY

NAVAL FACILITIES ENGINEERING COMMAND EUROPE AFRICA SOUThWEST ASIA

PSC 817 BOX 51

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".- :#! Vialeporto,8ox51 '.¯ -,' / Aeroporto Capodichino

' 0144 Napoll, Italla

J&A No. 2409 Ser AQ/7908 August 7, 2024

CLASS JUSTIFICATION AND APPROVAL

FOR USE OF OTHER TI-JAN FULL AND OPEN COMPETITION

1. Contracting Activity. Naval Facilities Engineering Systems Command (NAVFAC) Europe, Africa, Central (EURAFCENT), Public Works Department (PWD), Rota

2. Description of the Action Being Approved. This class justification requests approval permitting other than 11,11 and open competition to authorize utilization of the sole source, brand name only provider, Telefónica of Spain, previously the Spanish National Telephone Company, or Compania Telefonica Nacional de Espaia (CTNE), of Madrid, Spain, for any and all engineering, provision, installation, testing and certification of the outside telecommunications cable plant required in support of contracts for construction of facilities at Naval Station (NAVSTA) Rota, Spain. Such telecommunications work is primarily expected to arise as part of the overall construction work under current and future task orders issued under Rota's Multiple Award Construction Contract (i.e., the "Rota MACC") for large construction projects and the Rota mini-Multiple Award Construction Contract (i.e., the "Rota mini -MACC") for small construction projects. The authority to act under this class justification expires on 30 September 2028.

3. Description of Supplies/Services. The work consists of providing, testing and making operational cabling, interconnecting hardware, and lightning and surge protection necessary to form a complete Outside Plant (OSP) telecommunications system for continuous use. The outside plant (OSP) consists of cable, conduit, manholes, poles, etc. required to provide signal paths from the closest point of presence to a facility, including free standing frames or backboards, interconnecting hardware, terminating cables, lightning and surge protection modules at the entrance to a facility. OSP terminates and inside plant (ISP) begins where OSP cables are connected to a third party device located inside the telecommunications cabinet of a facility.

The total estimated cost for future OSP telecommunications work expected to be part of Rota construction projects over the life of this class justification - i.e., over the next five years - is $7,000,000.

Estimated Dollar Value

MILCON $5,000,000

O&MN $600,000

Other $1,400,000

J&A No. 2409 Ser AQ/7908 August 7, 2024

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

Total $7,000,000 I

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. 3204(a)(1), Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority. Telefonica was a government-owned monopoly that provided the past OSP infrastructure to Naval Station Rota. In 1989 the European Union required member countries to privatize their state-owned telecommunications monopolies with Telefonica retaining ownership and control over infrastructure and intercity connectivity. Telefonica is not obligated to allow third party service providers to utilize their rightfully owned infrastructure and has communicated to the Government that they will not allow third-party providers access to it.

The cost for labor, material, and equipment to construct a telecommunications infrastructure similar to the existing Telefonica infrastructure is estimated at $13,000,000. This costs does not include project planning and design, road crossings, and conflicts with existing underground utilities. Any interested competitor would be rcsponsible for supplying and coordinating the installation of the new infrastructure, before any future competition could result for installation ofOS? in new facilities. This results in a substantial duplication of cost that would not be recovered through competition. There are no plans for a programmed project to duplicate and replace the existing Telefonica telecommunications infrastructure at Rota. Given the estimated cost, such a project would need to be authorized and appropriated by Congress. Awaiting approval for the construction of a similar telecommunications infrastructure would result in unacceptable delays for the Navy, as there are currently seven MILCON projects under construction that require connection to the telecommunications infrastructure.

For these reasons, requiring that future construction use Telefonica for their various OSP telecommunications work in Rota is essential to completing Government requirements as Telefonics is the only available source for such work under the current circumstances.

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

Market research was conducted and a sources sought notice issued, Market research confirmed that although there are other telecommunications firms in Spain, including Orange, Vodafone, and Movistar (owned by Telefonica), only use of Telefonica could satisfy the Government's current requirements. In accordance with DPARS PGI 206.302-1, NAVFAC EURAFCENT posted a Source Sought Notice in SAM on 7 May 2024 requesting capabilities statements from firms that believed they had the capability to provide the telecommunications infrastructure and related services, All interested persons were encouraged to reply by

Ser AQ/7908 August 7, 2024

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

identifying their capabilityto respond to this requirement before 6 Jun 2024. One response was received from . The firm claims 20 years of experience in providig telecommurcationsand related infrastructure deriy from its merger of 1 The website indicates the business entity has 12 years of experience aidurrently only hi a presence in the Catalonia region in the northeast of Spain and the island of Mallorca with no current investment in the Andalucla region where Rota is located. So although they have expressed interest in supplying telecommunications services to NAVSTA Rota, they are not considered as viable source considering the estimated $13,000,000 or more of OSP infrastructure investment required to change the existing Telefonica infrastructure used to meet the immediate needs of the base.

7. Determination ofFair and Reasonable Cost. The Contracting Officer has determined the anticipated cost to the Government of the supplies/services covered by this J&A will be fair and reasonable. Additionally, the prices of future construction task orders containing OSP telecommunications work will individually be determined to be fair and reasonable by use of price analysis techniques.

8. Actions to Remove Barriers to Future Competition. For the reasons stated above, the NAVFAC EURAFCENT has no plans at this time to change the existing OSP telecommunications infrastructure that would affect the type of actions covered by this Justification and Approval.

CERTIFICATIONS AND APPROVAL SIGNATURE PAGE

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.

Technical Cognizance:

James_G._Wood,_P.B.

Signature Name (Printed) Phone No. Date

Requirements Cognizance:

Ser AQ17908 August 7, 2024

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

LiT

Steven Zuk

Signature Name (Printed) Phone No. Date

LEGAL SUFFICIENCY REVIEW: J have determined this justification is legally sufficient.

Signature Kevin_E._Bolin

Name (Printed) Phone No. Date

CONTRACTING OFFICER CERTIFICATION: I certit' that this justification is accurate and complete to the best of my knowledge and belief.

Sean M. Duffy

Signature Name (Printed) Phone No, Date

ECHELON IV COMMANDING OFFICER APPROVAL: Upon the basis of the above justification, I hereby approve, as the Echelon IV Commanding Officer, the solicitation of the proposed procurement(s) described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. 3204(a)(l), only one responsible source and no other supplies or services will satisfy agency requirements.

-I- ,r,4%9 Phone No. Date