1.08 - Redacted J&A.pdf

Navy Marine Corps Acquisition Regulation Supplement APRIL 2018 (Change 18-24)

Base Period:

Option I:

Option II:

Option III:

Option IV:

FAR 52.217-8:

Total:

The IGE for this service was provided by NCTAMS LANT Contracting Officer’s Representative (COR). The IGE was developed by comparing the current invoices as of April 2024. The specific terms of the MOU with GSA prevented AT&T from yearly cost increases for the last 10 years.

Using the escalation factor via the CPI Inflation Calculator website from 2014 to 2024 provides an expected increase of . Line costs for 2,200 lines, voice mail resets and all moves, additions and changes costs are also included in this IGE. Therefore, the IGE is based on an average of past invoices for identical services (past history operating under the MOU with GSA) factored with CPI Inflation Calculator accounting for the 10 year span of fixed pricing.

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

The Statutory authority permitting an Other than Full and Open Competition for this requirement is 10 U.S.C. 3204(a)(1), Other Than Competitive Procedures. This sole source acquisition will be implemented by Federal Acquisition Regulation (FAR) 13.5 Simplified Acquisition Procedures.

5. Rationale Justifying Use of Cited Statutory Authority.

As defined by FAR 13.501(a), this action seeks to procure, on a sole source basis, commercially available telecommunication services as described above in support of the NCTAMS LANT BCO at NAS Key West. The infrastructure at NAS Key West is based on the early 1980’s ISDN (Integrated Services Digital Network) technology, transmitting on copper-based wires outside plant and analog telephone switches. AT&T Corporation owns the entire existing infrastructure (outside plant), technical and wiring plans and a first generation LUCENT 5ESS Telephone Switch at NAS Key West. AT&T is the Incumbent Local Exchange Carrier (ILEC), and owns the infrastructure and switches supporting the Navy services as outlined in the Market Research Memorandum. An ILEC is a telephone company that provided local service prior to the Telecommunications Act of 1996, which owns most of the local loops and facilities in a serving area. AT&T owns the critical circuits operational for the Naval base customers, fire department, and Anti-terrorism and Force Protection (ATFP). AT&T is the current provider for emergency 911 trunks at the Regional Dispatch Center (RDC), and is the only vendor that has a point of presence (POP) at BCO Key West. The vendor is the only source with the resources (i.e.

facilities, technicians, equipment) readily available and currently in place for telecommunications emergency requirements, 24 hours a day, 7 days a week, 365 days a year.

Currently, these services are provided under a reimbursable Memorandum of Understanding between DISA and GSA. There is no record the original contractual arrangement was competed.

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

Note: Market research for this requirement was conducted in two phases. Phase one began in November 2022, but was later paused due primarily to an extension of the services provided via the GSA/DISA MOU. Phase two, which began in October 2023, pretty much reaffirmed results of Phase one and included additional information as detailed below:

In November 2022, the MR team utilized various market research methods to obtain information concerning potential vendors capable of maintaining equipment and phone lines as described above.

The following details from the initial market research are summarized in an effort to confirm the initial conclusions. Early research revealed the requirement is not currently available from sources such as AbilityOne, including NIB/Source America, Federal Prison Industries (FPI)/UNICOR, or NASA Solutions for Enterprise-Wide Procurement (SEWP).

The requirement was synopsized with a Sources Sought Notice posted via Contracting Opportunities, Sam.gov on 04 November 2022, which produced no responses. A Government Service Administration (GSA) Market Research as a Service (MRAS) Request was submitted on 04 November 2022 for SIN EIS CONTRACTS – Enterprise Infrastructure Solutions (EIS). Under NAICS 517311. Again, no responses were received.

A query of the Small Business Dynamics website revealed 16 small businesses under keyword “WIRED TELECOMMUNICATIONS”; North American Industry Classification System (NAICS)

– 517311 – Wired Telecommunications. The MR team contacted the small businesses via email to determine if they could fulfill the Government requirements; however, no responses were received.

Additional market research conducted by GSA EIS concluded that the current/existing telecommunication services contract supporting BCO Key West must transition to an EIS solution or other contract vehicle in advance of the services migration to Voice over Internet Protocol (VoIP). The current outdated infrastructure and technology at the BCO is too costly and unsustainable going forward. This was confirmed by the customer, NCTAMS LANT. The current telecommunications infrastructure is based on early 1980’s Integrated Services Digital Network (ISDN) technology, transmitting over copper based wires outside plant and analog telephone switches. NCTAMS LANT indicated AT&T Corporation, the current incumbent/service provider, owns all of the existing infrastructure (outside plant), technical and wiring plans, and a first generation LUCENT 5ESS Telephone Switch at NAS Key West.

Due to the time of constraints of meeting the 01 April 2023 contract award deadline, GSA exercised options with a Memorandum of Understanding (MOU) and invoked Continuity of Service (CoS) clauses on the expiring Networx, WITS 3, and Local Service telecom contracts through 31 May 2024 to allow agencies and their contractors additional time to complete transition from those contracts. Therefore, the requirement was suspended until October 2023 (FY24).

During this timeframe the prior MOU was scheduled to end 31 May 2024, which would have required our customer to establish a contract for these services prior to. Nearing the end, the MOU was extended to 31 May 2025 allowing tenet commands time to adjust. After weighing the risk, the customer elected to stay under GSA’s MOU, allowing time to develop the buy.

Upon resuming the acquisition in October 2023, the Contract Specialist again utilized various market research methods to refresh and verify the initial market analysis and obtain new information available concerning businesses capable of providing the required services. Phase two of the team’s MR confirmed the requirement for Voice Messaging Services was not available from AbilityOne, including NIB/Source America, Federal Prison Industries (FPI)/UNICOR, and NASA Solutions for Enterprise-Wide Procurement (SEWP).

Additional queries were submitted with the following results:

- Department of the Navy (DON) Category Management Office on 21 November 2023. The query revealed 38 Other than Small Businesses using GSA SIN - Alliant2, and only one (1) SB was listed. As such, there is no reasonable expectation of obtaining offers from two or more responsible small business concerns.

Small Business Dynamics website revealed 15 small businesses under keyword “VOICE MESSAGING. on 24 November 2023, an email was sent to each small business to determine if they could fulfill requirement. . No responses were received from any SB.

- GSA MRAS Request was re-submitted on 29 November 2023 under NAICS 517311 –

Wired Telecommunications Carriers and SIN EISCONTRACTS – EIS. Under SIN NAICS 517311, no responses were received. Under SIN EISCONTRACTS, there was only one (1) response received from Comcast Government Services, Large Business Concern (LB), Cage –8ES48; UEI – ZEYLYJQ1R287. In the report, they indicated the company could support Integrated Services Digital Network (ISDN) technology, outdated phone line technology, specifically analog copper lines telephone switches from carriers for end of life devices.

However, they did not provide a detailed statement on how they could support the service.

Although the base infrastructure consists of analog copper lines, Comcast can only provide VoIP service. Additionally, the MRAS asked if required to partner with the current service provider, could they describe how the company can provide technical support and if they have partnered with other service provider to provide the Name of Company, address, contract number, and POC of the proposed partnership. Their responses were “Non- Applicable”.

On 06 December 2023, the CS contacted Verizon Public Sector to determine if they could fulfill the requirement on. On 12 December 2023, they indicated that it would have to partner with the incumbent; however, no details were provided to describe the proposed partnering, nor examples of past partnering with companies of similar service.

- An additional query of the D2D Defense Category Management website was conducted on

14 February 2024 under NAICS 517111 and PSC Code DG11. The results identified three

(3) Tier 0 contracts under Common Spend Navy Category and twelve (12) contracts under All Contracting Departments with Tier 0 contracts. Based on the results of Phase Two of this market research, there are no potential strategic contracts available, and it has been determined that the Government’s needs cannot be met through the use of the common category solutions.

A detailed analysis of past and prevailing market conditions that the incumbent, AT&T, is the only source with the current infrastructure in place and can execute continuation of the required services without interruption to the customer.

The above market place conclusions, confirmed by phases of research and analysis, are consistent with the most recent map by the Florida Public Service Commission’s (FPSC) 2023 posting of the Incumbent Location Exchange Telephone Companies (ILECs):

The above map of Incumbent LECs reflects AT&T as the only provider of telecommunication services in Key West and surrounding areas.

Based on the replies from industry and independent market research, the Government has no confidence nor reasonable expectations of obtaining offers from two or more responsible small business concerns based on the specific nature and geographic location of the customer’s requirement. AT&T superior position with regards to ownership of intellectual property, infrastructure, and technological knowhow customarily attributable to an incumbent, greatly limits the Government’s ability to foster competition in this area under the current market conditions.

NCTAMS LANT recently indicated in early November 2023 they have begun market research and are preparing an Industry Day to determine the feasibility and cost to implement a VoIP solution for Key West. That effort will closely follow the current buy, and if determined more beneficial to the Government, has the potential to become a better solution. If and when that solution becomes available, the contracting officer would then make a decision to solicit and incorporate the VoIP solution contract by not exercising options or use of 52.217-8 to align the POP of the new requirement.

7. Determination of Fair 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.

8. Actions to Remove Barriers to Future Competition.

This requirement is currently in the early stages of market research for VoIP Solution. Based on the timeline provided, it will be at least two (2) years to consider replacing the outdated ISDN copper-based wires and analog switches infrastructure before installing a new VoIP Solution.

The proposed contract will be in place for five (5) years and choose not to exercise an option period if VoIP is available.

J&A No. 24-J010

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.

Requirements Cognizance:

Phone No. Date

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

CONTRACTING OFFICER CERTIFICATION

I certify that this Justification is accurate and complete to the best of my knowledge and belief.

[Insert title of Approving Official. If Senior Procurement Executive of the Navy is the Approving Official, insert, “SENIOR PROCUREMENT EXECUTIVE”] APPROVAL

Upon the basis of the above justification, I hereby approve, as [insert title of the Approving Official], 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)(x)(provide appropriate citation).

Date