single_source_justification.pdf

Single Source Justification (Simplified Acquisition)

FOR OFFICIAL USE ONLY

November 2018 FOR OFFICIAL USE ONLY Page 1 of 2

Section A: General Contract Information

Is this a Bridge Action as defined in the AF Bridge Action Reduction Plan? Yes No

Contracting Activity: 501 CSW/RCO

Project/Program Name: Residential Fibre Broadband Service at Alconbury

Purchase Request / Local ID Number: TBD

Estimated Contract Cost (including Options): $199,590.23

Section B: Description of the Supplies/Services Required

Under the proposed contract, BT Federal equips, furnishes, installs, and tests direct buried/ducted communications cables and tubing (microducts) owned by the USAF within the BT apparatus to provide improved internet capability to the On Base Housing at RAF Alconbury.

Section C: Justification for Soliciting from a Single Source or Brand Name

Informational Note: British Telecom (BT) Group Plc is a holding company which owns BT Plc and BT Openreach. BT Openreach is the infrastructure division of BT Group Plc and was established in 2006. BT Federal Inc. is a US company formed in 2003 through BT's purchase of Control Data Systems.

BT owns all of the manholes, duct systems and copper cabling (known as the BT apparatus) on the U.S. Vising Forces (USVF) bases associated with the 48 CS, 100 CS, 420 CF, and 423 CS in the UK. The USAF entered into Duct Sharing Agreements (DSA) with BT in November 1996 to allow the USAF access to the BT apparatus to install high speed fiber and other communications support items. The DSAs allow the USAF to access the BT apparatus subject to supervision by BT. As stated in paragraph 9 of the DSA, the USAF "shall not sub-contract any aspect of this Agreement. It is BT's policy not to share with other license operators/service providers." From 1996 to 2009, EFIT&R services for USVF bases in the UK were provided by USAF personnel.

The UK telecommunications authority's (Ofcom), final decision regarding opening BT ducts and related infrastructure to competition released on 28 March 2018 but did not mandate competition for BT duct access. Instead, Ofcom confined its ruling to duct access for high-speed fiber only and gave BT approval authority over which companies are allowed access to the BT apparatus and each approved company must pay an access fee to BT. This ruling does not affect BT's ownership of their ducting apparatus nor the Duct Sharing Agreement currently in place.

Therefore, to achieve competition the Government would be required to purchase BT's ducts/manholes/infrastructure in addition to the price for performing the contract work . Even if competition resulted in 50% savings in total contract value the $99,795.12 saved would be unlikely to offset the purchase price.

Therefore, BT Federal Inc is the only firm capable of providing the supplies and services described in Section B above without the USAF experiencing substantial duplication of costs that could not be expected to be recovered through competition.

Section D: Efforts to Obtain Competition

48 CONS who has a much larger contract with BT Federal and therefore more leverage has undertake efforts to engage with BT to update the DSA to provide more conclusive language on our intention to allow contractors other than BT to USAF contracted work within the BT owned ducts and has engaged with Ofcom to determine if BT/Openreach is operating within the guidelines mandated by the UK Telecommunications Act of 1984 as amended by the UK Communications Act of 2003. Several attempts were made by 48 CONS to update the 1996 DSA, however BT was not amenable to their efforts. 48 CONS received no response to a 2016 letter to Ofcom requesting Ofcom's assistance in establishing competition to access the BT infrastructure.

FOR OFFICIAL USE ONLY

November 2018 FOR OFFICIAL USE ONLY Page 2 of 2

Section E: Steps to Preclude Future Single Source or Brand Name Awards

Although previous efforts by the Government and Ofcom's 2018 ruling have failed to establish competition, the Government plans to continuously monitor regulatory changes and availability of competition and will include the market status in each determination to exercise options.

Section F: Contracting Officer's Determination

I have determined, in accordance with FAR 13.106-1(b)(1), that the circumstances of this contract action deem only a single source is reasonably available.

Date

30-Sep-2020

Typed Name and Rank/Grade of Contracting Officer

SUSAN M. FULLER, GS-13

Signature of Contracting Officer

November 2018 Page of Section A: General Contract Information Is this a Bridge Action as defined in the AF Bridge Action Reduction Plan?

Section B: Description of the Supplies/Services Required Section C: Justification for Soliciting from a Single Source or Brand Name Section D: Efforts to Obtain Competition Section E: Steps to Preclude Future Single Source or Brand Name Awards Section F: Contracting Officer's Determination I have determined, in accordance with FAR 13.106-1(b)(1), that the circumstances of this contract action deem only a single source is reasonably available.

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