JnAforCellphoneBlackBerryServices.pdf

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

Control Number 13-14

W91QVN-08-D-0014, Mobile Communications Services Support for USFK

1. Contracting Activity: 411th Contracting Support Brigade - Yongsan, Korea, ATTN:

CCEC-KOY-SA, Unit #15289, APO AP 96205-5289

2. Procurement History:

a. Contract W91QVN-08-D-0014 was awarded to GICellphone Corp. on 18 April 2008 with a Base and four (4) options, in the amount of $7,985,464.79 for USFK mobile communications services support for all organizations on peninsula. This requirement was solicited among an unlimited amount of commercial vendors and 5 quotes were received and evaluated IAW FAR 12.

b. Prior to this contract being initiated each unit was establishing mobile communications services contracts on their own with a variety of vendors and without competition through the use the Government Purchase Card (GPC). Because of the different unit sizes and requirements a variety of pricing schemes were established. This contract was established to first leverage economies of scales to save money and secondly to avoid abuse in the use of the GPC.

c. The mobile communication services provided under this contract are essential in the communications of the Warfighter and DoD Emergency Essential civilians stationed throughout the Korean peninsula.

Only certain types of devices, i.e. Blackberries’ (i.e. data) are authorize for connection to the US Government network (see attachment). Defense Information Systems Agency (DISA) is conducting a pilot program to test the possibility of taking advantage of current technological advances in the commercial market such as the use of iphones, smartphones, ipads and the Galaxy Note. Some of these devices are in limited use on the network today as part of the pilot program; however NETCOM has been informed they are unauthorized for use by NETCOM supported customers on the Korean peninsula.

Therefore, NETCOM has decided to move forward with the procurement of communications devices and services while DISA continues its pilot program. Upon the conclusion of testing, DISA will announce to the general public whether these devices are authorized for use on the network. Therefore, delays were caused in NETCOM’s development of requirements and an acquisition strategy as a result of uncertainty in using the most recent technology on the US Government’s network. Further, challenges causing delays was the lack of knowledge of the specific laws, regulations, and business practices in the foreign (i.e.

Korean) market place. Subsequently extensive market research has been performed and is still being conducted to ensure the US Government does not violate Republic of Korea telecommunication laws and policies, particularly as it relates to emerging commercial telecommunication technology.

3. Description of Action: This action is to gain approval to extend Contract W91QVN-08-D-0014 to continue USFK mobile communication services support for USFK and all organizations on peninsula.

This extension is for six (6) months, from 01 May 2013 through 31 October 2013. The incumbent contractor, GICellphone Corp., provides this mobile communication services support to USFK and all organizations on peninsula. This extension is needed to continue mobile communication support for USFK until a new contract is place to provide this service. The total cost of the contract extension IAW with FAR Clause 52.217-8 for the six month period of performance is paid by each individual unit using a GPC and it is based upon the subscriber usage at approximately $487,062.52.

4. Description of Supplies/Services: The incumbent Contractor, GICellphone Corp., provides USFK mobile communication services. This is a mission essential service.

5. Authority Cited: FAR 6.301 and 6.302-1, 10 U.S.C 2304(c) (1) Only One Responsible Source and no other supplies or services will satisfy agency requirements.

6. Reason for Authority Cited:

a. This J&A is not due to a lack of acquisition planning or funding considerations. The delay is a result of multiple dynamics associated with the requirement definition and acquisition strategy that were not foreseen. Two significant dynamics were the unclear understanding of DoDs’ direction in treating emerging commercial technology and the uncertainties associated with the DISA pilot program. Lastly, there were the dynamics found in the challenges to developing a full acquisition strategy due to the lack of knowledge in the changing telecommunication market in Korea coupled by the Korean telecommunication laws and policies.

b. Due to the changes in situation mentioned above, a solicitation for the new mobile communication services is in process. Therefore, due to the delay of the solicitation and the identification of contract type, it will take at least four (4) or more months to realistically solicit and award a new contract. The Government intends to award Blanket Purchase Agreements (BPAs) and there is a possibility for a break in services. In order to avoid a potential break in mobile communication support, it is in the best interest of the Government to authorize a six (6) months extension to the current contract using the authority cited in Paragraph 5.

c. An unacceptable break in fulfilling the agency’s requirements is the reason for the use of FAR 6.302-1, Only One Responsible Source. In this case, the W91QVN-08-D-0014 services contract must be extended sole-source to the incumbent contractor because any delay in fulfilling these services that are essential methods of communications for the Warfighter and DoD Emergency Essential civilians stationed in Korea would jeopardize the US Government’s ability to efficiently and effectively communicate to forces during a crisis. This Option to Extend Services would allow USFK to provide the mobile communication support services until the new contract or BPA is in place to provide the required services. Since the incumbent contractor is currently providing these services with the entire necessary workforce and other resources in place, they are the only responsible source to meet the requirement without creating a break in service. Therefore, it is in the best interest of the U.S. Government to issue the modification for the six (6) months extension IAW FAR 52.217-8.

7. Efforts to obtain Competition: The intended follow-on contract or BPA will be competed among at least the three (3) commercial service providers who are qualified with established published cellular and BlackBerry service contracts. GICellphone Corp. is currently performing the mobile communications service for USFK under the current contract and will continue these services as a result of this extension of service.

8. Action to Increase Competition: This is a sole source modification to provide continued services while a follow-on contract or BPA is being prepared and awarded. The agency will compete and award the follow-on contract or BPA IAW FAR 12.107 (a) among the three (3) commercial service providers and their authorized dealers.

9. Interested Source: No vendors were sought besides GICellphone Corp., the incumbent contractor, for the above mentioned reasoning. The follow-on contract or BPA will be competed among the three (3) commercial service providers and their authorized dealers.

10. Analysis to Support Price Reasonableness Determination: Due to the fact that this contract is being exercised in accordance with FAR Clause 52.217-8, Option to Extend Services, pricing submitted by the Contractor in their original pricing proposal for Option Period IV will be utilized. The anticipated cost of this contract extension is considered to be fair and reasonable based on historical data from the previous option year and competitiveness of the contract award.

11. 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.