Loren Data's SAM Daily™

FBO DAILY ISSUE OF MARCH 18, 2010 FBO #3036
SOLICITATION NOTICE

70 -- VACO OPTICAL MAN

Notice Date

3/16/2010
 

Notice Type

Presolicitation
 

NAICS

541519 — Other Computer Related Services
 

Contracting Office

1701 Directors Blvd;Suite 810;Austin TX 78744
 

ZIP Code

78744
 

Solicitation Number

VA-200-09-RP-0112
 

Response Due

3/23/2010
 

Archive Date

5/22/2010
 

Point of Contact

Rob McDormanContract Specialist
 

E-Mail Address

Contract Specialist
(robert.mcdorman@va.gov)
 

Small Business Set-Aside

N/A
 

Description

Sole Source Justification for Leasing Dark Fiber Optic Cabling from Applied Data Systems (ADS) Solicitation # VA-200-09-RP-0112 1. Requesting Agency VACO Department of Veterans Affairs ITS Networking, MS 005/OP5D4 Room 578N 810 Vermont Avenue NW Washington, D.C. 20420 Contracting activity: Department of Veterans Affairs Center for Acquisition Innovation - Austin 1615 Woodward St. Austin, TX 78772 2. Nature and/or description of the action Contract to continue the lease of dark fiber optic cabling to support the existing Metropolitan Area Network (MAN) in the Washington DC metropolitan area. 3. A description of the supplies or services required to meet the agencys needs (including the estimated value) The Department of Veterans Affairs VA Central Office (VACO) supports about 7000 users, and 17,000+ computers in 17 buildings in the Washington DC Metropolitan area with a Metropolitan Area Network (MAN) that includes the Capitol Area Network (CAN). This network currently supports voice, video, and data traffic. The Office of Information Technology (OI&T), Information Technology Services organization in VACO is responsible for providing MAN connectivity throughout this campus. Connectivity is provided for all Administration and staff offices connected to these networks that service many different business processes to serve the Veteran. 4. Statutory Authority The statutory authority of this justification is FAR 6.302-1. Only one source is capable of responding due to the unique or specialized nature of the work. 5. A demonstration that the proposed contractors unique qualifications of the nature of the acquisition require use of the authority cited There are two points to make. First, ADS unique qualifications lay in its knowledge of the marketplace in this geographic area, its existing business relationships that reduce the time needed to lease fiber circuits, and its status as the incumbent currently providing our connectivity. Second, due to the nature of the industry in this geographic area, there is insufficient time for any other competitor to respond to this solicitation. ADS provides fiber circuits that would take 18 to 24 months for any competitor to replicate. Further, AT&T provided notice in July of 2009 that they are unable to provide circuits from the Networx contract in the time required by the VA to replicate the existing network by October 31st, 2009. Discussions with AT&T on this topic began as early as December 29, 2008 in an initial introductory meeting. 6. A description of efforts made to ensure that offers are solicited This effort will be posted in FedBizOpps as a planned sole source award to ADS for dark fiber maintenance services. 7. A determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable The anticipated costs of $********** for the entire possible term of the contract (Base + 5 Option Years) associated with this maintenance and services effort will be fair and reasonable based on historical cost, established contract comparisons, and negotiations. 8. A description of the market research conducted (see Part 10) and the results or a statement of the reason market research was not conducted See Attachment A - Market Research. 9. Any other facts supporting the use of other than full and open competition There are no additional facts supporting other than full and open competition. 10. A listing of the sources, if any, that expressed, in writing, an interest in the acquisition Any source expressing interest will be reviewed against the requirement to ensure the most advantageous maintenance services solution is provided to the government. 11. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required The Office of Information and Technology program office continually assesses the best maintenance solution for dark fiber services. Future requirements will be evaluated to determine and provide for the Governments best interest. 12. The Contracting Officer certifies that the justification is accurate and complete to the best of the Contracting Officers knowledge and belief. The contracting Officers recommendation signature on the justification for other than full and open competition document constitutes agreement with this statement. CONCURRENCE OF THE PROGRAM OFFICIAL The Program Official hereby certifies that the data provided in support of the recommendation for other than full and open competition are accurate and complete to the best of my knowledge and belief. CONCUR:_____________________________ ________________ David PonderDate Chief, VACO Network Division CERTIFICATION BY THE CONTRACTING OFFICER AND OTHER CONTRACTING OFFICIALS I certify that the content of this justification is accurate and complete to the best of my knowledge and belief and I concur in the recommendation for other than full and open competition. RECOMMEND:_______________________________________________ Louis Cornell Date Contracting Officer Center for Acquisition Innovation Austin RECOMMEND:_______________________________________________ David W. Peterson Date Deputy Director Center for Acquisition Innovation Austin APPROVE:______________________________________________________ Iris Cooper Date Competition Advocate Market Research The VAs Experience with Dark Fiber in the Washington DC Market VACO has enjoyed fiber connectivity since year 2001 to include VA-owned fiber, leased dark fiber, and managed fiber services. ADS has been a contractor to the VA in these efforts since the beginning. What is Leased Dark Fiber? Leased dark fiber is a reference to optical fiber strands bundled into cables that are buried beneath the ground or strung on poles that when lighted with customer lasers, carry information from one point to another. An example would be two Government buildings connected with this fiber cabling carrying voice, video, and data traffic. The VA currently leases dark fiber in this District of Colombia market that extends into Virginia, Maryland and West Virginia. Who are the Leased Dark Fiber Providers? Leased dark fiber providers in this market include Fiberlite, FiberNet, FiberGate, Level3, AboveNet, RCN, and PEPCO. These providers are not on the Networx contract. Terminology Last Mile or Lateral Connection The last mile or lateral connection is the fiber cabling that must be installed between the providers existing fiber infrastructure and the building that needs to be connected. This always involves some level of installation, whose time to completion is measured in months. As an example, Verizon provided a managed services fiber optic circuit to the VA in year 2004 that took 14 months to install. Fiber Infrastructure Fiber infrastructure topology is typically installed in a metropolitan area as a ring. Fiber providers have installed fiber cabling over the last several decades driven by the demands of this local market. The VA requires ring topologies for high network availability. Fiber providers own the fiber in the ground. Providers create topologies to meet customer requirements using existing fiber routes owned by them or other fiber providers, and construct new fiber routes where none exist. Ducts Fiber optic cabling is delicate and vulnerable. It is installed into protective ducts (or conduit) beneath the ground and protective ducts within buildings to protect it from harm. What does it take to Connect Two Buildings with Dark Optical Fiber Cabling? The process for the lateral connection requires route-mapping to determine how far "off-ring" the building to be serviced is located, and how many new fiber-miles of fiber cabling will be necessary to make the connection to the service providers main network fiber ring. This involves months of pre-engineering surveys by the fiber provider to determine the most direct, economical fiber path, and whether existing ducts can be used or if new installation is required. Preliminary Engineering The purpose of preliminary engineering is to identify existing, potentially useable ducts. The fiber providers make this determination. Once a preliminary route is identified from provider records, a duct search is performed to determine if existing ducts are available, and how populated these ducts might be with existing cables. This process, in this market, involves Verizon and PEPCO (Utility companies providing communications and electrical power) who are the owners of the underground duct systems that allow access to every building. Since Verizon provides traditional connectivity (copper) to virtually every building in the Washington DC area, they is considered the best Utility to provide existing conduits at the most competitive rates. However, every request requires negotiated contracts, and permission must be sought and provided to conduct the initial surveys. This process always involves Utility personnel. The pre-engineering effort is always a lengthy, expensive process whose costs ultimately must be passed along to the customer. However, despite the charges involved in this process, the costs incurred are far less than new installation. Use of Existing Ducts If the identified ducts are determined to be a viable possibility, the next process is to determine if they are useable. This involves the rod-and-rope procedure, which involve a duct-rodder, which is inserted in each of the ducts targeted in the preliminary fiber route. This process ensures that the ducts are free from obstructions, and are not collapsed in any area along the projected route. Collapsed ducts are frequent obstacles. If the identified ducts are obstructed, then additional excavation will be required to repair them. This is time consuming and requires a lengthy permitting process because all this infrastructure is buried under roadways. It must always be accomplished after rush hour, which usually means working at night. After successful rodding, a drag-line rope is installed that facilitates actual fiber installation through the duct. Installing New Ducts If through the preliminary engineering process no existing ducts are found to be available, then new installation must be accomplished in order to install them. This process is long, arduous, and involves working directly with many players: local governments; permitting offices; local inspectors; and the many subcontractor personnel involved in the actual installation. The permitting process can take months, and in the District of Columbia, there is a moratorium every year during the coldest months, between December and the end of February. There is an additional difficulty with all new installations: restoration of roadways and sidewalks. Restoration costs can be high, and are determined by the DC Department of public works (DPW), usually after the work is concluded. A large "buffer" in the estimate of any installation effort must be budgeted, to ensure that complete repaving of the road can be funded when the DPW makes a surprise request to do so. The buffer charges can be in the hundreds of thousands of dollars, and can always be avoided with the use of existing ducts. The ADS Advantage due to Completed Laterals The most costly network installation efforts occur when lateral installation requires new ducts. It is a non recurring charge, but it can easily cost into the many hundreds of thousands of dollars in installation charges. The VAs Metropolitan Area Network (MAN) as currently constructed, has already incurred all of the costs associated with the laterals described above. Our present contractor, ADS, has secured long-term contracts with the subcontractors who have exclusive rights to these Verizon and PEPCO duct systems, thus precluding any other vendor from using them. Therefore the costs to other potential competing contractors to find alternate routes will likely prevent them from successfully competing. The VAs Experience with Applied Data Systems (ADS) in the Washington DC Market from 2001 to 2009 Fair Market Value ADS teamed with Northrop Grumman and competed for the ORAN contract against four other companies in 2004 and won the contract on low-price and experience. The MAN fiber was in place two years before the ORAN RFP was released. ADSs pricing is likely to remain competitive. AT&T declined to provide any numbers on a preliminary basis, as they quickly realized the huge costs to replicate the current MAN, and the lengthy time it would take to make it operational. For another vendor to replicate the current MAN network architecture, we have determined that they have two options: 1.Team with ADS 2.Go through the 18-24 month process of constructing a completely new fiber system. This second scenario cannot be accomplished effectively within the time constraints that require a new contract by November 1st, 2009. Also, ADS's fiber providers require long term contracts before any reasonable rates can be continued. Another vendor willing to team with ADS on a global vehicle is a possibility, provided all involved can come to an agreement, as Northrop Grumman did on the ORAN contract. If an agreement can be reached, the cost of the network will certainly increase due to the added overhead associated with adding another company into the mix. ADS would also incur additional overhead costs to provide additional staff to process invoices between basically two customers. These costs would be passed on to the VA. This has already happened with the ORAN contract. ADS has all the long-term contracts with the fiber providers, has provided all the designs and transport hardware, and has also provided all the maintenance and network support. However, because of the GITTS vehicle that Northrop and ADS were required to use, ADS claims to have paid a 15% overhead premium to Northrop Grumman. Northrops contribution to the contract may have been limited to bearing the risk associated with the contract and administrative services. Managed Bandwidth and Underground Circuits When the VA built the MAN and ORAN networks in 2003 and 2006, dark fiber circuits were readily available from multiple providers. This is no longer the case. The trend is for the fiber providers to offer either a managed solution, or charge an added premium for dark fiber. Managed solutions charge for bandwidth while leased fiber solutions charge for the fiber cable only and the customers buy the hardware needed to provide whatever bandwidth is required. The VA conducted a market survey in 2003 that showed managed services were roughly 10 times the cost of leased dark fiber for 2 GE (Gigabits per second Ethernet) service. The VA requires all underground fiber circuits. Two of the dark fiber providers that have been identified as possible contenders for this business have hybrid aerial/underground fiber networks, thus making them ineligible because they don't meet the VAs requirements. Long Term Contracts between ADS and the Fiber Providers By continued utilization of ADS' services, we are locked in for the long term at base-rates that are competitive, that have only escalated small percentages over the years (yearly escalation charges), and that satisfy all the requirements in the Performance Work Statement. The contracts ADS appears to have in place with the fiber providers provides dark fiber for the long-term, without the possibility of any interruptions for the next eight or more years. The performance of ADS has been satisfactory, and we are comfortable with our working relationship. They are the only company that can satisfy all of our requirements for the continued and un-interrupted operation of the MAN as a critical resource. Summary ADS has been a satisfactory contractor providing fiber connectivity to VACO since 2001. Theyve accepted the risk of obtaining long term contracts from the fiber providers in order to offer competitively priced circuits to the VA. It is unlikely that any other contractors will be able to compete with them to supply dark fiber topology.
 

Web Link

FBO.gov Permalink
(https://www.fbo.gov/notices/b3ae493accce8f6717f4f499d74cbb3f)
 

Place of Performance

Address: Department of Veterans Affairs;810 Vermont Avenue NW;Washington, D.C.

Zip Code: 20420
 

Record

SN02093403-W 20100318/100316235032-b3ae493accce8f6717f4f499d74cbb3f (fbodaily.com)
 

Source

FedBizOpps Link to This Notice
(may not be valid after Archive Date)

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