Redacted JA21-025 822113912 CONUS-GTMO SFOC Follow-on JA final_Redacted.pdf

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:

Contract Number: To be determined

Task/Delivery Order Number: Not applicable (N/A)

Procurement Title: Submarine Fiber Optic Cable (SFOC) Technical Support Guantanamo Bay

(GTMO)

Estimated Value:

Statutory Authority: 10 United States Code (U.S.C.) 2304(c)(1) and FAR 6.302-1

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

Justification for OTFAOC Number: JA21-025

Upon the basis of the following justification, I, as the Procuring Activity Competition Advocate, hereby approve the use of OTFAOC of the proposed contractual action pursuant to the authority of 6.302-1, only one responsible source and no other supplies or services will satisfy agency requirement.

1. REQUIRING AGENCY AND CONTRACTING OFFICE:

Requesting Agency:

Defense Information Systems Agency (DISA)

Infrastructure Executive, Special Programs Branch (IE15)

Contracting Activity:

DISA/Defense Information Technology Contracting Organization (DITCO) PL8231

2. NATURE/DESCRIPTION OF ACTION(S): DISA currently has two technical and software support services contract with Xtera Inc. (Xtera), under contracts HC1047-14-C-4018 and

HC1013-17-C-0002. Contract HC1047-14-C-4018 expires 1 April 2021 and provides support services for the operation and maintenance of the SFOC system connecting the Navy Base

GTMO to the Defense Information Systems Network (DISN) nodes in Florida. HC1013-17-C-

0002 expires 23 August 2024 and provides the same support services for the SFOC connecting the Navy Base GTMO to Puerto Rico. These SFOC systems were procured under separate contracts, both provided by Xtera Inc., but now both contracts are in the sustainment phase, only requiring operation and maintenance support services. The continuation of these services is critical to the effective operation of these systems and support

The proposed contract shall be Firm Fixed Price for a period of performance of one year beginning 2 April 2021, plus nine one-year option years. The intent is to incorporate the

GTMO SFOC Technical Support-JA21-025

Page 3 of 5 Pages

(a) Description of events.

(1) The original CONUS to GTMO SFOC system, HC1047-14-C-4018, was procured in a full and open competitive procurement as a small business set-aside and was awarded to Xtera on a best value basis.

(2) During the implementation of the CONUS-GTMO SFOC system, the Xtera products and Network Management System (NMS) hardware and software were tested, certified for placement on the APL and integrated into DISA’s overall NMS.

(3) The GTMO to Puerto Rico (GTMO-PR) SFOC system, HC1013-17-C-0002, was procured on a sole source basis from Xtera as they were the sole supplier whose equipment and software were on the APL and integrated into the DISA NMS.

In addition, the software and firmware can only be maintained and upgraded by the system supplier for this proprietary equipment.

(b) Justification

(1) Minimum Government requirements: The Government requires continuation of existing services already provided by the supplier as options under the original supply contracts, the first of which (HC1047-14-C-4018) expires 1 April 2021. The second contract (HC1013-17-C-0002), will expire 23 August 2024, at which time that support will be added to this contract.

(2) Proposed sole source contractor: Xtera is the proposed sole source supplier to continue the current support to the Government. As previously stated, the SFOC systems contain hardware, software and firmware proprietary to Xtera, and they are uniquely able to provide technical support, software/firmware upgrades, maintenance and training. Another supplier could not provide these services for the existing SFOC systems. A sole source procurement was used to procure the GMTO-PR SFOC

(HC1013-17-C-0002) to avoid the expense and delays associated with getting a second SFOC supplier certified for the APL and to integrate their NMS into the DISA

NMS.

(3) Discussion regarding cause of the sole source situation: These services have been provided by the same contractor under the provisions of the original installation and operations and maintenance contracts. Competition for these services would not be feasible given the proprietary hardware and software to be supported with this follow-on contract. The GTMO-CONUS SFOC, acquired under HC1047-14-C-4018, was acquired under a competitive small business set-aside, and market research has shown that no other companies, large or small, offer the required services in support of the

Xtera proprietary systems.

Page 4 of 5 Pages

(4) Impact: If the sole source procurement is not awarded to Xtera, the

6. FEDBIZOPPS ANNOUNCEMENT/POTENTIAL SOURCES: A combined Notice of Intent-

Sources Sought was posted to beta.SAM.gov on December 8, 2020 requesting capable companies to submit their interest within 15 days from the notice. No responses were received by the closing date of December 23, 2020. The Contracting Officer (KO) will post this J&A to beta.SAM.gov within 14 days of award of this contact action in accordance with FAR 6.305(a).

7. DETERMINATION OF FAIR AND REASONABLE COST: While it is the KO’s determination to determine fair and reasonable cost in accordance with FAR, DISA/IE15 developed an Independent Government Cost Estimate (IGCE), and supporting analysis, using input derived from the current contract, adjustments for inflation, subject matter expert cost estimates of required labor categories, labor rates and comparable levels of effort.

The results of the IGCE and the supporting cost analysis demonstrated to the program management office that the supplier’s cost was reasonable.

8. MARKET RESEARCH: Market research included the following activities: review of DISA

Market Research Repository; acquisition history reviewed; interviewed knowledgeable industry subject matter experts; reviewed existing DISA-wide multiple award contract vehicles;

interrogated the Small Business Administration (SBA) Dynamic Small Business Database. It was determined that only Xtera is qualified to perform all the tasks detailed in the Performance

Work Statement (PWS). All software and hardware are proprietary to Xtera.

Xtera is the only supplier who can provide all requirements detailed in the PWS for the entire integrated submarine cable system, to include technical support, software upgrades, and training.

9. ANY OTHER SUPPORTING FACTS: N/A

10. LISTING OF INTERESTED SOURCES: Xtera, Inc.

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

THAT LED TO THE EXCEPTION TO FULL AND OPEN COMPETITION: In the SFOC industry, each SFOC is designed to a detailed specification, and all hardware and software used in the system is proprietary. For this reason, when acquiring SFOC technical support, software upgrades, and training support services, only the manufacturer is capable of providing the required follow-on technical support. Until SFOC hardware and software is standardized and interoperable, there will be no practical way to overcome the barrier of only one reliable source.

Page 5 of 5 Pages

TECHNICAL CERTIFICATION: I certify that the supporting data under my cognizance which are included in the J&A are accurate and complete to the best of my knowledge and belief.

NAME: SIGNATURE: See separate signature page

TITLE/ORGANIZATION: Contracting Officer Representative, Mission Support Division

PHONE: DATE:

REQUIREMENTS CERTIFICATION: I certify that the supporting data under my cognizance which are included in the J&A are accurate and complete to the best of my knowledge and belief.

TITLE/ORGANIZATION: Chief, Transport Special Programs Branch

CONTRACTING OFFICER CERTIFICATION: I certify that this justification is accurate and complete to the best of my knowledge and belief.

TITLE/ORGANIZATION: Contracting Officer/DITCO PL8231

PROCURING ACTIVITY COMPETITION ADVOCATE APPROVAL: I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief.

Since this justification does not exceed $13.5M, this review serves as approval and my written determination that the aforementioned FAR circumstances apply.

TITLE/ORGANIZATION: Procuring Activity Competition Advocate, DITCO

ALL QUESTIONS REGARDING THIS JUSTIFICATION ARE TO BE REFERRED TO Katie

S. Day, Contracting Officer, 618-418-6265 katie.s.day.civ@mail.mil or Devon R. Victory, Contract Specialist, 618-418-6746 devon.r.victory.civ@mail.mil