N6817119D0004_Justification_and_Approval_19-0136-REDACTED.pdf

DRPARTMENT OF THE NAVY

U.S. NAVSUP FLEET LOGISTICS CENTER SIGONELLA

PSC 812 BOX 28

FF0 AE 09627-0001

IN REPLY REFER TO

J&ANo: 19-0163

CLASS JUSTIFICATION ANI) APPROVAL

1. Contractinu Activity

Requiring Activity;

Contracting Activity:

Requisition Number

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

U.S. Naval Computer and Telecommunications Station, (NCTS) Naples, Italy NAVSUP Fleet Logistics Center Sigonella (FLCSI) DEl' Naples, Italy

TBD

Attachments: (I) J&A 14-033

(2) I&A 16-009

(3) SAM Registration - Cage: Code AC123 - TELECOM JTALIA SPA, doing business as TIM S.P,A.

2. Description of Action Bein2 Approved

This Is a non-competitive action submitted for approval to issue a Firm Fixed Price (FFP) indefinite Delivery Indefinite Quantity (JDIQ) commercial services contract and orders to TELECOM SpA (TIM), see foolnote (1), in support ofNaval Computer & Teleconnnunications Station (NCTS) for fixed-line telecommunication services at the Naval Support Activity (NSA), Naples, Italy. The proposed contract will contain a base ordering period of 12-months, with four (4) additional option years (12 month each). The requirement will also contain a six-month option period pursuant to FAR 52.217-8, "Option to Extend Services" (NOV 1999). Performance on orders placed in the final ordering period must be completed by 30 December 2024. The estimated total dollar value ofthe base year and all option years is

3, DescrIption of Supplies/Services

The requirement is fur the use of standard fixed line commercial teleconununications services that host and support Navy ONENET and include the Ibilowing elements; private wire line, Public Switched Telephone Network (PSTN) trunks, PSTN Number assignments, PSTN lines, long distance for land lines, Asymmetric Digital Subscriber Line (ADSL), Symmetric Digital Subscriber Line (SDSL), High-Bit-Rate Digital Subscriber Line (HDSL), Digital Network (ISDN) Prime Rate Interfuce (PRI) and Basic Rate Interlhce (BR1) service for Video Teleconferencing (VTC) with number and long distance access circuits at NCTS Naples, Italy. The Ibilowing areas shall be supported Naval Computer and Telecommunications Station (NCTS) Naples, NSA Gricignano, NSA Detachment Naples Gacts, SATCOM Lago Pairia, Teverola Warehouse, Admiral Villa Colombniu, Admiral Villa Marilu, U.S. Embassy Rome and Solar Observatory San Vito, Italy and Camey Park.

The orders placed under this contract action will be funded using Operations & Maintenance, Navy (O&MN) fluids and will not exceed twelve months in duration. The Base Year will be funded with Fiscal Year (FY) 2019 O&MN funds.

'Per S4M,gov Telecom Ito/ia SPA, Cage code: AC123, Is listed as TELECOMJTALZA SPA and doing business as TII(S,PA, therefore wv reference to TELECOM ITALL4 SPA and TIM is the same company, see Attachment (I).

J&A No 19-0163

The proposed duration and estimated cost ofthe contract is detailed below:

Period tfoinaiceeriodätes

TotalEstuuated .¯Môuñt EURO

'Total Eiinated Amount U S

DOLLAS S

Base Year 01 Jun 2019-31 May2020

Oi,tion Year One 01Jun2020 -31 May2021 -

Ot1onYearTwo 01Jun2021-3lMay2022 '...

OptionYearThree 01 Jun2022 -3l May2023 '.

$ .6 OpiJon Year Four 01 Jun 2023 -31 May 2024 ._t 0pt1onpor52.217-8 01 Jun2024- 30Nov2024

UptoSix(6)Mcnths l______________

TOTAL -

The Budget Exchange Rate for Fiscal Year 2019, whereby $1 Euro 0.8582. was used. fbr the above calculations obtained from the Office ofSecxvtary ofDeftasa (Comptroller).

4. Statutory Authority Permittina Other Thou Full and Open Cwn.jietiti

The statutory authorities permitting other than full and open competition are 41 U.S.C. 1901 Simplified Acquisition Procedures (SAP) and 10 U.S.C. § 2304 (c)(1) Contracts: Competition Requirements as implemented respectively by FAR 13,501(aX1)(ii) for SAP and FAR 6.302-1 (2)(iii) Only one responsible source and no other supplies or services will satisfy agency requirements.

5. RatIonale Justifying Use of Cited Statutory Authority

NAYSUP PLC Sigonella Naples (FLCSI Naples) has been supporting the subject telecommunication services requirement provided by TIM under two previous U)JQ Contracts: N681 71-14D-0018 and N6217 1-1 6-D-0013. Both ofthese IDIQs were the result ofJustification and Approval (J&A) for the Use ofOther Than Full and Open Competition. Details arc found in previously cited J&As, No. 14-033 and No. 16-009. See Attachments (1) and (2).

The current orders from N68171-16-D-0013 expire on June 27, 2019..

Prior to award ofcontract N68171 -14-D-0018, telecommunication services were obtained via NCTAMSLANT Ordering Officer utilizing Basic Agreement (BA) HC1021 -12-H-2007 between Defense Information Technology Contracting Organization (DFFCO) Europe and TIM, in conjunction with DD Form 428, Communication Service Authorization (CSA), or an electronic equivalent to acquire a variety ofcommunication supplies and services. On 19 February 2014, NCTAMSLANI' contacted FLCSI Naples notifying them that Defense Information Systems Agency (DISA) had directed that the existing CSA process used to procure commercial telecommunications services fbr NSA Naples, under the BA HC1021 -12-H2007, be discontinued and either a sole source J&A be provided or a competitive procurement be issued.

The elements of the BA HC1O2 1-12-14-2007 were examined by NCTAMSLANT and broken down into competitive elements and non-competitive elements.

The requirements in the Performance Work Statement (PWS) for fixed line services are a portion of the elements from the telecommunications support ofibred under HCl02 1-12-14-2007 and are not available for competition. TIM is the only company capable ofproviding and supporting the required fixed line service upon the beginning of the period of performance. The TIM owned nfraslructure and required services that are located at the places ofperformance are only provided by TIM. TIM does not allow any other competing telecommunIcation company to utilize the existing TIM infrastructure to provide a competing service. In addition, TIM owns the telecommunications infrastructure including switches, other hardware and proprietary relevant software, fiber and copper cables currently interlhcing with the NSA Naples.

J&ANo: l9O163

Due to the critical nature ofthese services, a lapse in the required services would result in a complete loss of Command and Control (C2) telecommunications services to NSA Naples customers and the Area of Responsibifity (AOR) resulting in mission failure, Impacted telecommunications setvices would cease the operation of standard fixed fine commercial telecommunications services including access to ONENIET, leased lines private wires, Public Switehed Telephone Network (PSTN) trunks, PSTN Number assignments, P5Th lines, long distance for land lines, Mymmetric Digital Subscriber Line (ADSL), Symmetric Digital Subscriber Line (SDSL), High-Bit-Rate Digital Subscriber Litre (HDSL), Digital Network (ISDN) Prime Rate interface (PRI) and Basic Rate Interface (BRI) service for Video Teleconferencing (VTC) With number and long distance access circuits at NCTS Naples, Italy. A complete loss of telecommunication services will have a catastrophic impact on mission readiness ofall commands onboard NSA Naples and may even increase risk to base safely and its personnel.

6 RJjption of Efforts Made to Solicit Offers from as Many Offerors as Frac&able

In accordance with DFARS PGI 206.304(a) (S-70), this non-competitive follow-on procurement to a previous award far same service includes a copy ofprevious contracts l&A 14-033 and No. l6.009 (Sec Attaclunents (1) and (2)) to assist the approval authority in determining whether the planned actions to remove any barriers to competition cited on previous justification were completed. Current Market Research consisted ofexamining the historical contract awards and FLCSI Naples supplemental infonnation regarding BA HCI 021-12-11-2007, examinIng the commercial market via internet searches, and a Sources Sought synopsis was posted to NBCO and EuroNECO from 11 to 14 February 2019 in accordance with DFARS P(11 206.302-1. Three (3) other sources provided interest, however, the evaluated submissions did not confirm the ability to perform the requirement. In addition, responses did not confirm or identif' any authorized companies allowed to provide service on the TIM infrastructure. TIM was contacted during Market Research and confirmed that no other companies are authorized to use the infrastructure that is supporting the requirement and located in the designated places ofperformance. Therefore, the historical examination of the past contract awards, incapable vendor responses, and conlirniation ofsole use ofthe infrastructure only by TIM confirms that at this time a competitive market place does not exist.

The contracting officer will post this approved J&A Within 14 days on EuroNECO in accordance with FAR 13,501(a)

(1) (iii).

7. DeterminatIon p Fair and Reasonable Cost

Telecommunication prices in Italy are regulated and monitored by the Italian Authority for Telecommunications (AGCOM), which is the regulatory and competition authority for communication industries in Italy. This entity is responsible for protecting the interests oftelecommunications users to ensure fairness and equity of tariffs charged by licensed operators for their telecommunications services. Unlike other countries where a single telephone operator may have a significant market power, teleconanunicatlon prices in Italy arc only partially driven by market rules or companies' strategies, and the telephone companies' pricing policies are the result ofdirent elements with government intervention and control being essential components. Hence, the Italian government is setting tariffrates for most services provided in the Naples. Area ofResponsibifity. TIM has limited to no control over the rates, which may change at the sole discretion ofthe Italian Authority for Telecomxrnmications. Although. the basic tariffrates are fixed, the distance from the point of origin to tennination may influence the price for certain landline services.

The contractor shall submit a formal price proposal, including sufficient supporting documentation. Given that this is a commercial procurement, certified cost and pricing data will not be required; however, other than certified cost and pricing data will be requested as needed to ensure fair and reasonable pricing. Conunercial, relevant and specific historical data are available for use in price analysis. Therefore, it is anticipated that adequate infbrmnation will exist upon which to perform price analysis and negotiate a fair and reasonable price. The contracting officer has determined that the anticipated cost to the Government will be fair and reasonable because the Government intends a price analysis comparing Telecom Itaila's proposal to:

i. Independent Government Estimate using FAR 13.106-3(a) (2) (vi);

ii. historical Price Data using FAR 13.106-3(a) (2) (ii); and,

iii. Other Reasonable Basis FAR 13.106-3 (aX2)(vii).

J&A No 19-0163

8 Actions to Remove Barriers to Future ConmetWon

This requiremeflt is for a base ordering period of 12-months, with four (4) additional option years (12 month each), and a six-month option period pursunnt to FAR 52.2174, "Option to Extend Services" (NOV 1999) will also be included. The contract structure allows the Government the flexibility to peiform a competitive acquisition in the event capable competition emerges for fixed line telecommunication services as required in the PWS.

Future Market Research will be performed as the telecommunications market in the Naples, Italy area continues to experience regulation changes. The advent of the European Union has resulte4 in reqent legislation that allows fur greatm use ofthe public infrastructure and could possibly allow for a future competitive procurement. The Government intends to survey the emerging market place to identify potential couipetitors, To accommodate any capable competitors, the Government will tailor future acquisition strategies accordingly. Performance ofthis market research shall be in real time documenting possibility ofcompetition.

9 Contraciiw Point OfContact

The points ofcontact at NAYSUP FLC Sigonella, Del. Naples are as follows:

Marco Picoirillo, Contracting Oflicer Phone: +39-081-568-3938 (CMML) and 314-626-3938 314 (DSN) Email: Marco.Piecfrillo.IT@eu,navv.rnii

Jennifer Lee, Shore Team A Lead Phone: +39-08l568-4219 (CMML) and 314-626.4219 (DSN) Email: Jennjfer.Lec(eu.ntwvjnj1

J&A N<n l9O16

TECHNICMJREQLqREMENTS CERTIP1CATON ae1ii that the feats and rapt santations under my conizanae which are laded In this Jupdflcgrion and Its supporting cquisithm ptannin doawnems, acep as nntad harem are eotntkta end Aecurate to Iha best of m knowledge and belief.

TeehnicaMequirentents Cognizancet

'4Signattire Name (Ptintgd) Phona No. Date

LECaAL S(!FFJC1ENCY RFlVlhW

1 havejk nnine4 thi Justification is kalb sufticient, Kft (,Wft /2I/Jq Signature Name (Printed) Phone No. Date

CONTRACTING OFII('ER CERTIE1CATION

I certit that this lustilkatkrn is eacarate end corapkt.a to the best ot'niy knowledge and belief.

LEEJENNIFER.L1 O Dlgftally5igned by

- . . LEEJENNIiER.Lt057459278

57459278 bäté:.221i34:54 +01 '00'

CONTRACTING ACTIVITY COMPETITION ADVOCATE REVIEW

To the extent that the J&A value is between $700K and $13 .5M, the Competition Advocate' signature below also represents approval of the J&A.

alt.Padovano.Maria.nmn.0202548273 Digitally signed by alt.Padovano.Marla.nmn.0202548273 Date: 201 9.03.28 11:47:12+0100

Signature Name (Printed) Phone No. Date