Redacted_HC104712D0002-P00013_JA.pdf

JUSTIFICATION FOR OTHER THAN FULL AND

OPEN COMPETITION (OTFAOC)

Federal Acquisition Regulation (FAR) Part 6 Justification & Approval (J&A), Supporting Procurements under FAR 12, and FAR Part 15

Purchase Request Number: Not Applicable Contract Number: HC1047-12-D-0002 Modification Number: P00013 Procurement Title: Global Information Grid Fiber Expansion & Transmission Services Estimated Value: $119,218,934 Statutory Authority: FAR 6.302-1

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

Justification for OTFAOC Number: JA18-087

Upon the basis of the following justification, I, as the Senior Procurement Executive, hereby approve the use of other than full and open competition of the proposed contractual action pursuant to the authority of FAR 6.302-1 and 10 U.S.C. 2304(c)1.

1. REQUIRING AGENCY AND CONTRACTING OFFICE:

The Requiring Agency:

Defense Information Systems Agency (DISA) Infrastructure Executive (IE16), Capacity Management Branch Fort Meade, Maryland 20755-0549

The Contracting Office:

DISA

Defense Information Technology Contracting Organization /PL8231 2300 East Drive, Building 3600 Scott Air Force Base, Illinois 62225-5406

2. NATURE/DESCRIPTION OF ACTION(S):

The purpose of this J&A is to obtain approval to increase the current contract ceiling on HC1047-12-D-0002 between DISA and Level 3 Communications, Inc. (Level 3) by $119,218,934 from $422,693,963 to $541,912,897. It is anticipated the contract ceiling amount of $422,693,963 will be exceeded on or around September 2018. Increasing the contract ceiling is expected to satisfy the Department of Defense Information Network (DODIN)-IE1 program requirements to enhance and replace the existing DODIN core 10G CoreStream optical transport network (OTN) with a 100G 6500 Packet-Optical Transport Network between legacy segments

, add a second node and fiber extension , and add diversity . Additionally, the contract has three remaining option years which provide continued Operations and Maintenance (O&M) to the existing network. The contract is currently in Option Year 6, which expires September 30, 2018. The remaining three option years run through September 30, 2021. FAR Clause 52.217-8, Option to Extend Services is also included

Global Information Grid Fiber Expansion & Transmission Services-JA18-087

Page 2 of 7 Pages in the contract. DISA intends to fulfill the network enhancement requirements through firm-fixed price task orders utilizing Procurement funding. The O&M requirement exercised in the remaining option years will be funded using O&M funding.

These anticipated network enhancements and continued O&M are within scope and were included in the original ceiling amount. However, the contract ceiling must be increased due to four unanticipated critical Warfighter requirements

All other clauses and requirements of the existing contract remain in force.

3. DESCRIPTION OF SUPPLIES/SERVICES:

For the anticipated network enhancements and continued O&M, Level 3 will provide optical line amplifier installation, test, integration and O&M support in commercial fiber facilities as directed by the Government. In addition, Level 3 will provide end-to-end transmission and professional support services; to include but not limited to, Defense Information Systems Network (DISN) diversity and resiliency capabilities, system integration, optical transmission services, system upgrade and/or expansion to additional DISN locations, and re-utilization and/or upgrade of Indefeasible Right of Use (IRU) assets held by the Government.

Level 3 will supply all personnel, transportation and test equipment required to provide engineering, testing and installation for continued support of fiber O&M, network enhancements and future fiber builds. Below is a breakout of anticipated costs to be incurred beyond the current contract ceiling:

Fiber O&M: O&M of existing fiber links, projected to be approximately per year through Option Year 9. These costs cover O&M costs for over 15,000 miles of fiber

Circuit Lease: Cost associated with Task Order and continued support to critical Warfighter Mission and operational requirements through February 8, 2019. Task Order provides a 10G circuit lease from and the current option period expires February 8, 2019.

Technology Refresh/Network Enhancements: Costs associated with major DISN initiatives such as the Fiscal Year (FY)18 OTN Project, which is the Continental United States (CONUS) implementation of Next Generation DISN Optical Transport that will provide 100G Optical capability to the Joint Information Environment’s Core Data Centers and Joint Regional Security Stacks. One planned requirement is the upgrade to 100G capacity for There is an anticipated fiber relocation at to support a 2nd Service Delivery Node for diversity requirements to be implemented in FY19.

The cost increase to the contract is estimated at $119,218,934. The total estimated life cycle cost increases from $422,693,963 to $541,912,897. The requested increase will enable necessary fiber O&M, to include FAR 52.217-8, network enhancements and future build-outs, as shown below.

Page 3 of 7 Pages

Requirement Increased Amount

Fiber O&M (Option Years 7-9) Fiber O&M, FAR 52.217-8 Leased Circuits Network Enhancements Totals $119,218,934

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)(l).

5. DEMONSTRATION OF CONTRACTOR’S UNIQUE QUALIFICATIONS:

(a) Description of events.

DCA100-03-C-4057 was awarded to acquire specific dedicated fiber assets under a 25-year IRU between Level 3 and DISA. The 25-year IRU period is from September 2003 to September 2028. DCA100-03-C-4057 provided the initial eight years of O&M through September 2011.

The current contract, HC1047-12-D-0002, was awarded sole source to Level 3 as the follow-on to provide 10-years of continued O&M through September 2021. The IRU agreement will have seven years remaining once this contract expires in September 2021.

HC1047-12-D-0002 was initially awarded with a ceiling amount of $410,848,162. Modification P00002 was executed on September 12, 2013 to increase the ceiling amount to $422,693,963.

The increase was due to changes required on certain fiber routes as a result of Government site closures and new Government restrictions, which were not anticipated at the time of award. As a result of the route changes, there was an increase in the number of fiber miles and the number of optical line amplifiers.

As stated above in Section 2, unforeseen requirements were ordered under this contract to address critical Warfighter requirements.

These unanticipated orders caused a ripple effect that resulted in the contract ceiling needing to be increased, which is the subject of this J&A. These task orders are:

Task Order : Synchronous Transport Module (STM)-16 from awarded on November 19, 2012 with a total lifecycle amount of .

Task Order : STM-16 from awarded on April 18, 2013 with a total lifecycle amount of

Task Order : awarded on June 26, 2013 with a total lifecycle amount of .

Page 4 of 7 Pages

Task Order : awarded on September 25, 2013 with a total lifecycle amount of .

Task Orders have expired. Follow-on requirements have been awarded via the appropriate contract vehicles. The last option period on Task Order will be exercised for three months, expiring on September 1, 2018, and transitioned to a newly awarded follow-on contract. Task Order is the only unanticipated order remaining beyond September 1, 2018.

A follow-on order is currently being competed on the GNS contract with a target award in FY19.

(b) Justification:

(1) Minimum Government requirements. The contractor is to provide continued O&M for existing infrastructure, as well as deliver equipment and installation to support the U.S. Government’s telecommunications Technology Refresh/Network Enhancement requirements. Services and upgrades are required to be maintained through the contract period of performance. To satisfy the Technology Refresh/Network Enhancement requirements, the contractor will replace all current amplifiers, regenerators, and other equipment within the DISN with new equipment in order to provide higher bandwidths and greater capabilities. The DISN Core is a mission essential and vital part of the DODIN that provides the defense enterprise critical capabilities and functionality necessary for the Department of Defense (DoD) National Command Authority (NCA), Combatant Commands (COCOMS), Subordinate Commands and Combat Support organizations.

(2) Proposed sole source contractor. Level 3 provides the Government a fiber cable capacity for dedicated DoD communications. Level 3 is the only contractor able to access the equipment requiring replacement in order to continue maintaining the network to the design criteria to which the fiber infrastructure was built, updated, operated and maintained by Level 3 since 2003 under the IRU. The equipment required to operate the fiber is housed in Level 3 facilities throughout the network.

Access to the buildings is controlled by Level 3, which has the unique physical access and technical knowledge to repair and maintain components of the DISN to continue to meet the Government’s needs (performance, security, reliability, availability and sustainability) for a telecommunications network within the established DISN security guidelines.

(3) Discussion regarding cause of the sole source situation. In September of 2003, DISA awarded Level 3 a 25 year IRU for specific dedicated fiber assets. This contract is a vehicle to provide O&M under that ongoing agreement. Competition is not practical as the assets under this contract are currently being maintained by Level 3 and are located in Level 3-owned facilities. No other source has access to Level 3 facilities or the engineering data on the fiber to complete the work. Any competition would require transitioning to a network owned and operated by another company and abandoning the remaining fiber IRU. Level 3 is the only source able to provide maintenance and repairs at the Level 3-owned amplifier sites and fiber to the

Page 5 of 7 Pages associated Government sites. Level 3 has exclusive access to the sites as a result of its ownership of the equipment and facilities.

(4) Impact: Procuring these services from another source would result in significant cost to the Government to acquire and install a new network path with another provider.

The Government currently has an operational network under the current IRU, which consists of a multi-million-dollar capital investment. The Government would lose all cost and time efficiencies provided by the IRU. It will also delay the implementation of the FY18 OTN Project to achieve DISN 100G bandwidth capabilities.

6. FEDBIZOPPS ANNOUNCEMENT:

A waiver to post a Request for Information or Sources Sought notice on FedBizOpps was signed on May 9, 2018 by the Head of the Contracting Activity. The Contracting Officer will post this J&A to FedBizOpps within 14 days of the effective date of the contact action in accordance with FAR 6.305(a).

7. DETERMINATION OF FAIR AND REASONABLE COST:

The Government has fifteen years of contract history with Level 3, approximately five of which are under the ongoing contract. There is sufficient cost data to determine a fair and reasonable price for any future task order. A Government Cost Estimate will be developed by the Program Office prior to the solicitation and award of any task order, and the contracting officer will use this estimate, along with price comparisons currently available and analysis of cost information, to ensure the cost to the Government will be fair and reasonable.

8. MARKET RESEARCH:

The market research conducted in support of this action resulted in the determination that no other contractor can support this effort. Level 3 is the only contractor uniquely positioned to meet the stated operational mission needs. Level 3 owns or controls access to the facilities where all of the DISN equipment is located for the existing fiber IRU network. Facility based carriers do not grant uncontrolled access to wholly-owned network infrastructure and/or support facilities to any competitors nor allow 3rd party providers to install equipment into any element of proprietary core network infrastructure. This is standard protocol for any telecommunications provider with a facilities-based environment.

9. ANY OTHER SUPPORTING FACTS: None.

10. LISTING OF INTERESTED SOURCES: Only Level 3 can provide the necessary support.

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

THAT LED TO THE EXCEPTION TO FULL AND OPEN COMPETITION.

(a) Procurement History.

Page 6 of 7 Pages

(1) Contract Number: DCA100-03-C-4057 Contractor: Level 3 Communications Contract Period: September 2003 – September 2011 Type of Acquisition: Sole Source

(2) Contract Number: HC1047-12-D-0002

Contractor: Level 3 Communications Contract Period: September 2011 – September 2021 Type of Acquisition: Sole Source

(b) The sole source nature of this action is driven by the IRU agreement between DISA and the Level 3. The Government has invested a significant amount of money into the current DISN infrastructure and any effort to establish a different network would be a duplication of costs. At the expiration of the current agreement the Government can conduct market research to evaluate alternative sources.

12. REFERENCE TO THE APPROVED ACQUISITION PLAN (AP):

The Acquisition Plan, Acquisition Strategy and Acquisition Decision Memorandum of January 3, 2003 for the Major Automated Information System – Acquisition Category-1AM program specified execution of a 25-year IRU capital procurement in conjunction with an initial 10-year O&M support agreement, and included language of the Government’s right and intent to enter into follow-on contract(s) for continued O&M support and service for the 25-year term of the

IRU.