Azure Access JOFOC_Signed_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

CFTC intends to solicit on a sole-source basis. The following rationale is provided in accordance with the requirements of FAR 6.302-1.

(1) Identification of the agency and the contracting activity Commodity Futures Trading Commission (CFTC) Division of Administration, Information Technology Branch (DA-IT) and Division of Administration, Business Operations Branch

(BOB).

(2) Nature and/or description of the action being approved.

DA-IT has a requirement to continue its direct fiber connection between the CFTC data network and the CFTC Azure Access datacenter.

These “direct fiber” services will be procured from Recovery Point Systems, Inc.

(3) A description of services required to meet the agency’s needs (including the estimated value).

CFTC requires a continuation of its 10 Gigabyte High Availability (HA) direct fiber connection between the Recovery Point datacenter in Germantown, MD and its Equinix datacenter located in Ashburn, VA.

The direct fiber connection is a critical piece of CFTC’s network infrastructure. It allows low-latency data transfers between CFTC’s data center and the Azure Access datacenter. In short, a large portion of CFTC’s critical mission data is reliant on this HA direct fiber connection.

The period of performance for the contract will be one base year with four, one-year options.

The total estimated value for this action is $479,189.52 for a total period of performance of five years.

(4) Identification of the statutory authority permitting other than full and open competition.

The statutory authority is 41 U.S.C. 3304(a)(1), which states “the property or services needed by the executive agency are available from only one responsible source and no other type of property or services will satisfy the needs of the executive agency.” This authority is implemented by Federal Acquisition Regulation (FAR) 6.302-1 -- Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

(5) A demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited.

Recovery Point is the current provider of data colocation facility services under CFTC task order CFODT-15-DO-0098. Recovery Point also currently provides the HA Azure Access direct fiber connection under contract 9523ZY19C0029.

High Availability fiber connectivity between Recovery Point and Azure Access requires the use of existing infrastructure that currently connects these two locations.

As the current provider of these services and facility, only Recovery Point Systems, Inc can provide the direct fiber connection between the described locations as it is the owner of the origination point (the data colocation facility). No other vendor can provide a direct fiber connection to Azure Access inside the Recovery Point facility.

(6) A description of efforts made to ensure that offers are solicited from as many potential sources as is practicable, including whether a notice was or will be publicized as required by Subpart 5.2 and, if not, which exception under 5.202 applies.

Pursuant to the requirements of FAR 6.302-1(d) (2) and 5.201(b) (1) (i), CFTC posted a pre-solicitation notice of its intent to enter into a contract with Recovery Point, Inc. on a sole source basis. The notice described CFTC’s requirements, and stated that it would consider responses from all responsible sources received. The announcement was posted on May 22, 2024 with a response date of May 29, 2024.

One relevant response was received from Comcast, Inc on May 28, 2024. However, upon review of the response submitted by Comcast, CFTC determined that Comcast could not meet CFTC’s requirements. Specifically:

Comcast could only provide an Ethernet connection to the Recovery Point data center. CFTC requires HA direct fiber.

Comcast’s service would require CFTC to shape its internet traffic. CFTC cannot accept this restriction.

Comcast’s service would extra hops and internet traffic latency that CFTC cannot accept (as multiple extra network hops would be necessary to reach the Azure Access cloud using the Comcast service.)

Comcast’s service would require CFTC to fund additional Comcast equipment in its current data center. CFTC has no additional rack space, and does not intend to procure additional rack space for this requirement.

The contracting officer informed Comcast of the above points in writing on June 4, 2024 (see contract tab 11). Comcast did not provide any further response or otherwise communicate further by June 14, 2024 (10 days as noted in FAR 33.103 (e). Therefore, negotiations were conducted with Recovery Point, Inc. on a non-competitive basis.

(7) A determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable.

The contracting officer determined that the cost quoted by Recovery Point is fair and reasonable. The price CFTC is receiving for this service similar to historically paid prices and is Recovery Point’s commercially offered price for the service. Specifically, Recovery Point has proposed to escalate its existing pricing by 2% annually, which is lower than current inflation of 3.4%, as measured by the Bureau of Labor Statistics (https://www.bls.gov/cpi/).

(8) A description of the market research conducted and the results or a statement of the reason market research was not conducted.

Market research included reviewing commercial services as well as reviewing all relevant submissions as a result of the pre-solicitation posting. CFTC has determined that only Recovery Point can provide the High Availability Direct Fiber connection from its facility.

(9) Any Other Facts Supporting the Use of Other Than Full and Open Competition.

None.

(10) A listing of the sources, if any, that expressed, in writing, an interest in the acquisition.

One relevant response was received from Comcast, Inc on May 28, 2024. However, upon review of the response submitted by Comcast, CFTC determined that Comcast could not meet CFTC’s requirements.

(11) A statement of the actions, if any, the agency may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for the supplies or services is made.

No other vendor can provide this service until such time that CFTC changes the vendor that it uses for data colocation facility services.

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Certifications and Approvals

(12) Contracting Officer’s Certification

Certification that the justification is accurate and complete to the best of the contracting officer's knowledge and belief:

Benjamin Van Wormer Date CFTC Contracting Officer

(13) Technical/Requirements Personnel Certification

I certify this requirement meets the Government’s minimum need and that the supporting data, which forms a basis for this justification, is complete and accurate: