DISN Global Solutions Contract Bridge Action

Purchase Request Number: DCA200-02-D-5000 & DCA200-02-D-5001 Justification for OTFAOC Number: JA12-50 JUSTIFICATION AND APPROVAL TO PROCURE USING OTHER THAN FULL AND OPEN COMPETITION Upon the basis of the following justification, I, as Senior Procurement Executive, hereby approve the use of other than full and open competition for the proposed contractual action pursuant to the authority of 10 U.S.C. - 2304(c)(1). JUSTIFICATION 1. Agency and Contracting Activity. The requiring activity for this procurement is: Defense Information Systems Agency (DISA) Network Services Directorate Ft. Meade, MD 20755 The contracting activity is: Defense Information Systems Agency (DISA) Defense Information Technology Contracting Organization Scott Air Force Base, IL 62225-5406 2. Nature/Description of Action(s). This action is to award a bridge contract for an extension of the two Defense Information Systems Network (DISN) Global Solutions (DGS) contracts and an increase to the combined ceiling that will expire on 31 March 2012. This will be accomplished via modifications to the existing DGS contracts as extensions of two, 6-month option periods on each of the DGS contracts providing continuity of the existing Single Award Indefinite Delivery/Indefinite Quantity (IDIQ) contracts providing transmission, switched voice, data services and network management necessary to meet Department of Defense (DoD) requirements until the competitive awards of and transition to replacement contract(s) is completed. The DGS contracts, DCA200-02-D-5000 and 5001 (1-year base period with eight 1-year options), were competitively awarded to APPTIS (Formerly SETA) and Science Applications International Corporation (SAIC) respectively on 5 October 2001 with a combined Not-to-Exceed (NTE) ceiling of $3 Billion, which is shared between the two contracts as separate individual ceilings for each contract were not established. The ceiling was increased to $4.2 Billion on 23 April 2009 and further increased to $4.835 Billion on 21 March 2011. The DGS acquisition was awarded from one solicitation, with one award based upon full and open competition, and one award being set aside for small business. Continued support is essential as many programs depend on the DISN to meet mission needs, specifically DISN life-cycle activities, other DISA programs, Combatant Commands, Services, and Defense agencies (CC/S/A) and Coalition forces. As a result, the DGS contracts will be modified to add two, 6-month option periods to the lifecycle POP, potentially extending the POP through 31 March 2013 for each of the DGS contracts, and the total combined ceiling will be changed from $4.835B to $5.356B, an increase of $521M. The purpose of the optional extension periods and increase to the ceiling amount is to ensure continuous, uninterrupted services as the Government re-competes the associated efforts. The planned replacement contract(s) are the Global Information Grid (GIG) Services Management (GSM) Contracts. GSM will provide performance-based Information and Communications Technology (ICT) services to operate, sustain, defend, deploy and engineer the DISN and related converged ICT services for DoD and other activities involved in national security communications. There will be three separate strategies to satisfy this requirement: (1) GSM - Operations (GSM-O); will provide day-to-day operations and sustainment to include provisioning; network operations (including NetOperations, NetDefense, and Network Maintenance); user selected services; and integrated operations support services of the GIG. GSM-O will be a full and open competition that will result in the award of one IDIQ contract. (2) GSM - Engineering, Transition & Implementation (GSM-ETI); will provide non day-to-day engineering, implementation and transition services to include systems engineering and integration; architecture, telecommunication standards development; telecommunication network security and information systems engineering; Information Technology/Information Systems (IT/IS) Systems expansion/technology refresh; and circuits/service/system development and transition. Competition for GSM-ETI will be limited to small business participation only (Small Business Set-Aside) with the anticipation for multiple awards. (3) GSM - Projects & Support (GSM-P&S); will provide non day-to-day Programmatic Support; support solutions, Operational Support Systems (OSS) development, and Information Technology Service Management (ITSM)-Service Strategy and Continual Services improvement. GSM-P&S General Service Administration's (GSA's) Government-wide Acquisition Contracts (GWACs) Alliant-Small Business vehicle will be utilized using the fair opportunity process. The Government retains an option to release another Request for Proposal (RFP) for P&S in the future should GSA-provided capabilities prove unsatisfactory. The anticipated award structure for the GSM Program is reflected in the table below: GSM Strategy Estimated Value Contract Type Projected Award Competition Period of Performance GSM - Operations (GSM-O) $4.47B Single IDIQ Award with various contract types available to include Firm Fixed Price (FFP), Fixed Price Incentive (FPI), Cost Plus Fixed Fee (CPFF) and Cost Plus Incentive Fee (CPIF) 30-March-2012 Unrestricted 3-year base and 2, 2-year option periods GSM - Engineering, Transition & Implementation (GSM-ETI) $1.42B Multiple IDIQ Awards with various contract types available to include FFP, FPI, CPFF and CPIF 12-July-2012 100% SBSA 2-year base, 1, 2-year option, and 1, 1-year option period GSM - Projects & Support (GSM-P&S); $1.59B Fair Opportunity Process under Existing GSA vehicle Awarded 100% SBSA 03 February 2009 - 02 February 2014 Table 1.1 Note: Transition to GSM cannot be predicted at this time as the magnitude of transition is unknown as each DGS Task Order (TO) will be determined for transition at a component level, not at the TO level. 3. Description of Supplies/Services The DGS contracts provide the daily operations, administration, maintenance, and provisioning (OAM&P) functions required to operate and maintain the DISN Command and Control networks, supporting the Combatant Commanders on a 24X7x365 worldwide basis. Modifications to the DGS contracts will allow DoD to continue providing engineering, implementation, and transition activities necessary for uninterrupted communications services, until replacement contract vehicles are in place for transition. The DGS requirement is to assist the DISA and the DoD to manage, update, expand, and integrate disparate Service/Agency telecommunications systems into the DISA managed telecommunications infrastructure, the DISN, which is the backbone of the GIG. Contractor support responsibilities include the following areas: network management, engineering, installation, provisioning, operations, maintenance, integrated logistics support, and program management life cycle support solutions. DGS solutions are used worldwide to assist in the management of classified and unclassified components of the DISN and in acquiring and managing related support services and equipment. The DISN is the DoD's primary network for providing information transport to the DoD and a critical piece of our command, control, and communications (C3) infrastructure. The DISN is a fully operational network. The following shows the efforts that are forecasted for the extension periods. In the near-term, Multi-Protocol Label Switching (MPLS) technology supporting virtual private networking for community of interest (COI) users and Internet Protocol (IP) quality of service (QoS) supporting real-time applications will enable legacy circuit traffic to migrate to emerging IP Data services. Transport, Data, and Access services will emphasize Ethernet as the preferred customer interface to the DISN. Legacy Asynchronous Transfer Mode (ATM) and low-speed Time Division Multiplexing (TDM) private line services for dedicated connectivity will be capped and much of associated infrastructure will be removed from the network. A worldwide network of multifunction softswitches will be deployed to prepare DISN Voice and Video Services for hybrid circuit-switched and IP operations and support customer deployments of Voice over IP (VoIP) session controllers. Security Management Services will be bundled with Data Services to protect information transfer between the DISN and external IP networks. The DISN OSS will begin the transformation toward a common OSS with improved service fulfillment automation. Specific essential services that must continue beyond 31 March 2012 are: Operations and provisioning of the DISN and related contracts Network Services Elimination of legacy technologies Technology Refresh Cycle to prepare for refresh before technologies and related equipment reach end of life and end of supportability thresholds Plan, evaluate, select, engineer, and deploy next generation technology to achieve spiral objectives in a timely manner Assured communications using shared IP infrastructure Application of National Security in Iraq, Afghanistan, and Haiti Uninterrupted DISN maintenance to ensure continuity of the system The DGS contracts provide the necessary programmatic/operation/engineering services, material, equipment and facilities to support the life-cycle management of the DISN. The work includes: Program Management Cost/Schedule Management Financial Management Systems Engineering Hardware and Software Management Test and Evaluation Manufacturing Engineering Logistics Other services required for DISN support The DGS Contracts maintain capabilities to address life-cycle issues across the entire spectrum of systems within, or planned for integration within, the worldwide DISN. These systems include voice, data, video, imaging, and support telecommunications systems. Specifically, the DGS Contractors are responsible for assisting DISA to execute all phases of the DISN life-cycle management and engineering from concept exploration and definition through system disposition and decommissioning in classified and unclassified environments. The services described above are applicable for the entire contract POP. It is projected that the total estimated cost will be funded through the Defense Working Capital Fund (DWCF) and various types of appropriated funding determined for individual task order requirements. Projected in the below table are the estimated costs for the two, six-month option periods: Option 1 - 1 April 2012 - 30 September 2012 Option 2 - 1 October 2012 - 31 March 2013 Anticipated ceiling to be used through 31 March 2012 $144,366,372.48 Anticipated ceiling to be used for Option 1 $343,240,623.02 Anticipated ceiling to be used for Option 2 $259,470,066.72 Grand Total $747,077062.22 Remaining DGS Ceiling ($226,345,563.76) Requested Ceiling Increase $520,731,498.50 The intent is not to utilize the entire ceiling as we migrate to the GSM solutions and many of the task orders, particularly in the second six month option, most likely will not be renewed under the DGS contract. These totals are based on risk migration and the continuity of operations of the DISN, which is paramount. 4. Identification of Statutory Authority The statutory authority that will be used for this contract action is 10 U.S.C. - 2304(c)(1) - Only one responsible source and no other supplies or services will satisfy agency requirements - FAR 6.302-1 (a)(2)(iii). 5. Demonstration of Contractor's Unique Qualifications The proposed acquisition is a continuation of work performed by APPTIS and SAIC competitively awarded on 05 October 2001. The contracts provide critical services to our DoD customers. Both contracts must remain active with the exercise of the remaining options until those services are transitioned to the follow-on contract(s). A follow-on effort, GSM, is in process and the anticipated awards are reflected in Table 1.1 in paragraph 2. This procurement action is to bridge the existing DISN Life-Cycle Management Support provided under the DGS contracts in order to provide essential continuity of services. In order to maintain operational readiness and ability to perform its primary mission, DoD cannot afford any interruption in telecommunications services to its users. Loss of these services would have a disastrous impact on the DoD command and control infrastructure and thus the security of the United States. These contracting actions are critical to ensure continuation of telecommunications services that support the Continental United States (CONUS) sustaining base information infrastructure and allow rapid extension to deployed military forces anywhere in the world. Disruption of services would cause unacceptable harm to DoD's communications used in defense of our nation. At this time, only APPTIS and SAIC can fulfill the Agency's requirements during the extension period required to ensure continuity of critically needed communications service. An extension and ceiling increase of the contracts is the single available offering that provides for continuity or service to the DoD and the Nation's warfighter. The communication services involved in maintaining a large, complex communications network with many special features is very complicated. It is technically possible for other service providers to provide the services; however, excessive lead-time would be required for any other contractor to provide the current level of DISN lifecycle support. Past experience demonstrates that the amount of time required to transition network services of this size and complexity to new service providers would take a minimum of six 6 months and could only be achieved by expending considerable resources and time for ramp up and transition. In addition, it would result in the consumption of additional Government resources to move the DGS efforts to new vehicles. Because the incumbent contractors, SAIC and APPTIS, already have the systems in place to provide these services, no implementation and transition is necessary, reducing both lead time and cost of service while the Government re-competes the efforts. As a result, it is not feasible to transition these efforts to another contractor for the time period of this extension. Another option considered was the use of existing Government contracts to design, implement, integrate, operate and manage the DISN. This alternative was not selected because awarding a new contract or order to cover a base period of six months with a six month option period, is not practical as we transition to the GSM solution. In effect, two different transitions would occur in a very short period of time. The transition costs would increase exponentially with each additional contract awarded for this short transition period. Awarding competitive contracts to cover a base period of six months with a six month option period is not practical as we transition to the GSM solution. In effect, two different transitions would occur in a very short period of time. Notwithstanding the increased cost of Government administration, it is estimated that the cost to have dual transitions would result in an increase from $521M (current ceiling increase request) to $651M (an estimated increase of at least 25%) as determined by the DISA/Network Services Program Office. The transition costs would increase exponentially with each additional contract awarded for this short transition period. Ramp up and ramp down costs would be exorbitant along with the amount of risk the contractor would need to absorb to perform during this relatively short period of performance. Furthermore, the incumbents are more efficient in performing the current tasks as a result of performing these throughout the duration of the contract. As a result of the learning curve, it would take another contractor approximately 6-months to gain the requisite skills and abilities to obtain comparable efficiencies that the incumbents currently possess. As a result, it is clearly in DISA's best interest to minimize the amount of transitions of the support provided by the DGS contracts. Based on the above, SAIC and APPTIS for their respective contracted services, are the only sources that can perform this effort without the unacceptable disruption in critical defense worldwide telecommunications support. This bridge and extension is necessary to allow for sufficient time for the follow-on GSM strategies identified in Section 2 to be executed and for adequate time to transition to the eventual awardee(s).