Northstar JA Redacted for Synopsis.pdf

Northstar Network-JA20-152

Page 1 of 6 Pages

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: F1AF1B1161GC01

Contract Number: HC1013-21-C-0006

Task/Delivery Order Number: Not Applicable

Procurement Title: Northstar Network

Estimated Value: $63,500,490

Statutory Authority: 10 U.S.C. §2304(c)(l), cited at FAR 6.302-l(a)(l)

Justification for OTFAOC Number: JA20-152

Upon the basis of the following justification, I, as Head of the Contracting Activity (HCA), hereby approve the use of other than full and open competition of the proposed contractual action pursuant to the statutory authority of 10 U.S.C. §2304(c)(l).

1. REQUIRING AGENCY AND CONTRACTING OFFICE:

Requiring Agency: 844th Communications Squadron (CS)

1600 Air Force Pentagon

Washington, DC 20330-1600

Contracting Office: Defense Information Technology Contracting Organization (DITCO)

PL8231

2300 East Drive

Scott AFB, IL 62225-5406

2. NATURE/DESCRIPTION OF ACTION(S):

The purpose of this action is to negotiate a new sole source contract with AT&T National

Information Systems for continuation of the Northstar Long-Haul Telecommunications Network and the associated transmission circuits (herein after referred to as the ''Northstar Network").

The Government intends to issue a Firm Fixed Price contract to be funded with annual

Operations and Maintenance appropriations, consisting of a 1-year base period and four 1-year option periods. In accordance with FAR 52.217-8 a 6-month option to extend is also included in the estimated value.

3. DESCRIPTION OF SUPPLIES/SERVICES:

The Northstar Network is an Ultra-High Frequency/Line of sight communications system that provides air-to-ground/ground-to-air communications connectivity. The network provides analog and digital, voice, video, and data services to suitably equipped aircraft with a minimum of 95 percent coverage of the Continental United States (CONUS). This is accomplished via 20

Page 2 of 6 Pages geographically dispersed ground entry points (GEP) that provide omni-directional coverage, two

Special Government Operating Centers (SGOCs) and numerous T-1/T-3 telecommunication circuits that connect to digital access and cross connect system hubs strategically located within the network.

The two SGOCS are located in Waldorf, MD and Offutt AFB, NE which provide 24/7/365 redundant network operations support and remote operational control of all GEPs. The SGOCs are the exclusive customer contact points to coordinate the day-to-day operations (flight schedules, testing, circuit/station availability, etc.) including maintenance and trouble reporting for the entire Northstar Network.

The Northstar network provides aircraft connectivity to the following separate networks:

1. Executive Airlift Communications Network

2. Secret Internet Protocol (IP) Data Service (formerly known as Secret IP Router Network)

3. Sensitive but Unclassified IP Data Service (formerly known as Non-secure Internet

Protocol Router Network)

4. Multilevel Secure Voice Service (formerly known as Defense Red Switch Network)

5. Defense Switched Network

6. Public switched telephone network, as well as other voice and data networks

The anticipated performance periods and estimated life-cycle cost for the Northstar Network contract are as follows:

Base Period: May 1, 2021 - April 30, 2022 $11,133,793

Option Period 1: May 1, 2022 - April 30, 2023 $11,400,687

Option Period 2: May 1, 2023 - April 30, 2024 $11,433,244

Option Period 3: May 1, 2024 - April 30, 2025 $11,712,833

Option Period 4: May 1, 2025 - April 30, 2026 $11,781,774

6-Month Option Period: May 1, 2026 – October 31, 2026 $6,038,159

Estimated life-cycle cost $63,500,490

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). (FAR 6.302-1/DFARS 206.302-1).

5. DEMONSTRATION OF CONTRACTOR’S UNIQUE QUALIFICATIONS:

AT&T owns all assets that encompass the Northstar network to include the GEP equipment, a majority of the network circuits, and rights to the proprietary software and hardware that operate the network. AT&T retains a dedicated Northstar staff that possesses the knowledge to continue to maintain and repair the legacy network infrastructure. AT&T also possesses top secret safeguarding and facility clearances required to operate the network.

(a) Description of events.

Page 3 of 6 Pages

(1) The services supporting the Northstar Network involved one of the original Department of Defense (DoD) waivered systems exempted from competition. The system was originally designed in the late 1950s through 1970s and was provided by the dominant tariff carrier, now AT&T. The Northstar Network was implemented and evolved in proprietary pieces over time. This includes proprietary drawings, schematics and agreements with equipment providers and excludes other contractors from entering existing AT&T facilities.

(2) A class J&A was approved by the Senior Procurement Executive on August 1, 2008 for all circuits supporting the Northstar Network. Under the J&A's authority, DITCO issued 211 Communications Service Authorizations (CSAs) against AT&T's basic agreement HC1013-05-H-0670.

(3) A second class J&A was approved by the Procurement Activity Competition Advocate on December 5, 2013 to re-award 21 CSAs related to circuits supporting the Northstar

Network which had already expired or were due to expire on various dates through

November 30, 2014. Under the J&A's authority, DITCO re-awarded the 21 CSAs against AT&T's basic agreement HC1013-09-H-0655 with a period of performance ending on December 31, 2014.

(4) A third J&A (JA14-109) was approved by the HCA on August 26, 2014. Under the

J&A’s authority DITCO negotiated a sole source contract with AT&T for the continuation of the Northstar network, bringing all of the Northstar services under one contract in an effort to reduce administrative burden to both parties, obtain transparency of program costs and ultimately reduce future contract costs. Under this effort more than

211 CSAs previously issued against AT&T’s Basic Agreements HC1013-05-H-0670 and

HC1013-09-H-0655 were combined under the current all-encompassing contract H1013-

16-C-0001, with a period of performance ending on April 30, 2021.

(b) Justification.

(1) Minimum Government requirements. The primary objective of this acquisition is to continue uninterrupted support of the critical Northstar Network communications system that provides analog and digital air-to-ground/ground-to-air communications connectivity for DoD Senior Leadership.

(2) Proposed sole source contractor. AT&T is the only source available to provide continued uninterrupted executive aircraft communication services. AT&T owns the entirety of the network to include the GEP equipment, numerous CONUS circuits, and proprietary hardware/software and data rights necessary to securely operate and maintain the network. AT&T also retains a staff with the expertise to maintain and operate the legacy infrastructure encompassing the network. Most of the commercial sector has migrated away from the legacy services. The Government only intends to utilize this network solution for another 2-3 years at which time the service will be transitioned to a modernized IP solution currently being developed and implemented

Page 4 of 6 Pages by the Air Force. Due to the short duration the current network solution is needed from AT&T, it is not feasible to expand the potential sources which would require a substantial investment by the Government and derive no cost savings in return.

(3) Discussion regarding cause of the sole source situation. As stated in b (2) above, AT&T owns the entirety of the Northstar network that is utilized to provide ground based executive aircraft communication services. AT&T has been providing these services for decades under various Government contract vehicles as identified within paragraphs a (1) through a (3).

(4) Impact. If this J&A is not approved and a subsequent contract to AT&T is not awarded the DoD senior leadership would not be capable of performing their

Command, Control and Communications (C3) mission. The continuation of the

Northstar network provides critical secure communications capability between the country's most senior leaders that must be continuous while in flight. Senior leaders rely on the Northstar network for worldwide connectivity between these aircraft and their associated ground entry points.

6. PUBLISIZED ANNOUNCEMENTS/POTENTIAL SOURCES:

Notice of intent to sole source was publicly posted to beta.sam.gov (formerly known as

FedBizOpps) on November 22, 2019 and closed on December 23, 2019. The notice provided the technical details of the program and the intent of the Government to negotiate a sole source award to AT&T for follow-on services. Any interested parties who believed they could provide the capability were instructed to submit a capabilities statement and a rough order of magnitude for Government review/evaluation. No submissions or responses were ever received.

7. DETERMINATION OF FAIR AND REASONABLE COST:

The Government intends to utilize multiple evaluation strategies to ensure the resultant price is fair and reasonable. The Government has conducted a thorough analysis of the previously awarded proposal and identified several areas of focus to reduce costs in this follow-on contract iteration. A comprehensive and detailed independent government cost estimate was constructed collaboratively between the Air Force and DITCO to assist the Government in completing an in-depth cost analysis once AT&Ts proposal is received. The requiring activity will complete a technical evaluation of the proposed labor categories, labor hours, equipment, other direct costs and travel to ensure each element is consistent and necessary for the required services. Lastly, the Government has obtained, through the Defense Contract Audit Agency, AT&Ts actual costs incurred for the current effort via their annual incurred cost proposals. This will allow the

Government to make a comparison of the proposed costs vs. actual costs previously incurred to facilitate identification of excessively proposed costs.

Page 5 of 6 Pages

8. MARKET RESEARCH:

Market research efforts have revealed that no other available commercial or military service is able to provide the services AT&T provides via the Northstar Network. A notice of intent to sole source was posted for one month on beta.sam.gov with no responses from industry. The

Government conducted reviews of commercial databases, industry literature and existing contracts for possible alternatives to a sole source award. No data was found to suggest any source other than AT&T is currently capable of fulfilling the Government’s needs.

9. ANY OTHER SUPPORTING FACTS: None.

10. LISTING OF INTERESTED SOURCES:

No responses from interested sources were ever received to the notice of intent to sole source on beta.sam.gov.

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

THAT LED TO THE EXCEPTION TO FULL AND OPEN COMPETITION:

a. Procurement History:

(1) Contract numbers and dates of the last several awards for this action.

HC1013-16-C-0001 (Active): Contract was awarded on April 16, 2016 and has a period of performance end date of April 30, 2021. This contract was awarded on a sole source basis to AT&T under the statutory authority 10 U.S.C. 2304(c)(1), cited at FAR 6.302-1(a)(2), as approved by the HCA, on August 26, 2014 within justification for OTFAOC number JA14-109.

HC1013-09-H-0655 (Expired): DITCO issued 21 non-competitive CSAs to AT&T against referenced basic agreement IAW class justification for OTFAOC as approved by the Procurement Activity Competition Advocate on December 5, 2013.

HC1013-05-H-0670 (Expired): DITCO issued 211 non-competitive CSAs to AT&T against referenced basic agreement IAW class justification for OTFAOC, as approved by the Senior Procurement Executive on August 1, 2008.

b. Actions to Increase Competition:

It is anticipated that the services provided via AT&Ts Northstar Network will only be required until 2023. Per a recent DoD CIO memo titled “Legacy Network

Technologies”, the DoD must transition away from legacy circuit based technology to modernized IP solutions. The next generation executive aircraft currently in production are designed to use IP based communication technology and will no longer be compatible to operate via the current Northstar Network.