Accessibility Information

Users of assistive technologies such as screen readers should use the following link to activate Accessibility Mode before continuing: Learn more and Activate accessibility mode.

DISN Video Services - Global (DVS-G) Ceiling Increase

Solicitation Number:
Agency: Defense Information Systems Agency
Office: Procurement Directorate
Location: DITCO-Scott
  • Print
Justification and Approval (J&A)
FAR 6.302-1 - Only one responsible source (except brand name)
May 28, 2010
Added: Jun 14, 2010 5:00 pm


Originator's Code:  DISA [redacted]                                                                                  

Complete Procurement Request Number:                                                               JA10-091





Upon the basis of the following justification, I, as Senior Procurement Executive (SPE), hereby approve the use of other than full and open competition of the proposed contractual action pursuant to the authority of 10 U.S.C. 2304(c)(1), only one responsible source and no other supplies or services will satisfy agency requirements. 





1.  Agency and Contracting Activity: (FAR 6.303-2 (a) (1)).


Requiring Activity:


[redacted]Defense Information Systems Agency



Contracting Activity:


Defense Information Systems Agency

Defense Information Technology Contracting Office

2300 East Drive, Building 3600

Scott AFB, IL 62225-5406


2.  Nature/Description of Action(s): (FAR 6.303-2(a) (2)). 


A modification action to a firm fixed price Indefinite delivery/indefinite quantity (IDIQ) contract: DCA200-97-D-0054.  The contract will be funded using the Defense Working Capital Funds (DWCF) and part of these costs may be reimbursed with supplemental funds [redacted] has provided FY 10/ FY11 PDC funding for this effort to cover the full period of performance associated with the final 6-month option period (1 Jun 2010 - 30 Nov 2010).


Sole Source Action - Only one responsible source and no other supplies or services will satisfy agency requirements.


Defense Information System Network (DISN) Video Services - Global (DVS-G) provides Video Teleconference (VTC) services and support to the Warfighter, other Department of Defense (DoD), and Government users.  These services are provided by AT&T under contract DCA200-97-D-0054 which was competitively awarded in February 1997.  This is a Firm Fixed Price (FFP), Indefinite Delivery/ Indefinite Quantity (ID/IQ) type contract.  The current contract ceiling was established as a 12-month base period (1 December 2008 through 30 November 2009) and two 6-month options (01 December 2009 through 31 May 2010 and 01 June 2010 through 30 November 2010), which run consecutively from 1 December 2009 through 30 November 2010.


This contract has been extended five times:  1 May 2003 through 30 April 2005; 1 May 2005 to 28 February 2007; 1 March 2007 to 31 August 2007; 1 September 2007 to 30 November 2008; 1 December 2008 to 30 November 2010, each accomplished with an approved Justification and Approval (J&A).  It was anticipated that the fifth contract extension (1 December 2008 to 30 November 2010) would be the last contract period for DVS-G system, since it was to be replaced by DISN Video Services-II (DVS-II).  Due to technological limitations and a longer than expected implementation schedule, the DVS-II system efforts ceased in May 2009.  To continue to provide uninterrupted service, DVS-G must remain in place and operational until a new, presently undetermined, system, capable of supporting the current customer's video requirements, is in place. 


This continuity of service was threatened by the Base Realignment and Closure (BRAC) Committee decision to close [redacted] by September of 2011.  This BRAC closure resulted in the termination of the DVS-G Atlanta hub located at [redacted] creating serious impacts to the network's capability to provide VTC services.  Since the DVS-G system will be required beyond September 2011, the [redacted] Program Office has taken steps to ensure that the capabilities provided by the Atlanta hub will be relocated to the [redacted] facility located at [redacted]  The building of [redacted] is being accomplished through an Engineering Change Proposal (ECP) to DCA200-97-D-0054.  Approximately [redacted] has been added to the contract for the [redacted] that was not anticipated in the previous ceiling increase request.


The [redacted] is expected to reach Initial Operational Capability (IOC) during the second six-month option period running from 1 June 2010 to 30 November 2010.  As a result, an additional [redacted] will be added to the contract for the operations and maintenance of this Hub through 30 November 2010.  The operation and maintenance costs for the [redacted] were not included in the previous ceiling request.


Both the [redacted] and the [redacted] will be operational at the same time to allow for a 3 month overlapping transition period.  This transition period allows for the movement of the existing circuits from [redacted]


This contract ceiling modification will provide the continuation of current service provided by DVS-G for the second six-month option period of contract DCA200-97-D-0054.  AT&T owns the majority of, and operates all the equipment and proprietary software under, the DVS-G contract.  The Government is unable to turn operations over to another vendor, since AT&T owns the majority of the equipment and the proprietary software.  AT&T is the only vendor to incorporate both dial-up and dedicated Video Teleconference Facilities (VTFs), and to provide classified support at the level of security required, in the timeframe available.  To maintain operational readiness and continuous capability to perform its primary mission, DoD cannot afford any disruption of DVS-G services. 


This is a sole source request action that seeks to implement a ceiling increase to cover the previously unanticipated increased costs associated with the second six-month option period of the current DVS-G contract.  An increase of $5,584,000 in the contract ceiling from $239,300,000 to $244,884,000 is required.



3.  Description of Supplies/Services:  (FAR 6.303-2(a) (3)).


The DISN Video Services (DVS) provides interoperable global unclassified and classified video services and a full-service VTC utility for all DISN users.  The VTC service is a real-time, near-full motion video service that allows simultaneous video and audio communications between two or more dedicated or dial-up VTC sites worldwide.  DVS customers include the Warfighter, the DoD, other federal departments and agencies, state, and authorized contractors totaling more than [redacted] dedicated and dial-up users.


Customers access the video services via geographically, strategically, and tactically located DVS Hubs. Access to DVS is available to fixed, deployed, and mobile resources at all times under all conditions.  This J&A action will be to establish a new ceiling of $244,884,000 for the current contract.


The Period of Performance for the second six month option period:  1 June 2010 through 30 November 2010. 


Fully funding the second six-month option period from 1 June 2010 to 30 November 2010 will require a ceiling increase.  The current contract ceiling at $239,300,000 has an available obligation balance of [redacted]  It is anticipated that [redacted] will be required to fully fund the second six-month option period from 1 June 2010 to 30 November 2010.  It is also anticipated that an additional [redacted] will be required during this timeframe to cover miscellaneous costs to include the operations and maintenance of [redacted] the reconfiguration of an [redacted] various Information Assurance (IA) initiatives as well as other items.  Therefore, the total estimated funding needed for this ceiling increase is $5,584,000.  The contract will be funded using the Defense Working Capital Funds (DWCF).  Part of these costs may be reimbursed with supplemental funds that support the [redacted] 


See the estimated cost tables below and the accompanying IGCE for more detailed cost information. 



Estimated Contract Ceiling Increase Needed



Estimated Cost By Fiscal Year (FY)




4.  Identification of Statutory Authority Permitting Other Than Full and Open Competition: (FAR 6.303-2(a) (4)).


The statutory authority that will be used for this acquisition 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).


5.  Demonstration of Contractor's Unique Qualifications:  (FAR 6.303-2(a) (5)).


(a)     AT&T owns and operates the equipment within [redacted] and while the Government owns the equipment at the [redacted] and the forthcoming [redacted] they are operated by AT&T.  Additionally, AT&T owns proprietary software for the existing DVS under the DVS-G contract.  At the end of this contract, all of this equipment remains AT&T's property, with the exception of the equipment at the [redacted] and the forthcoming [redacted] is located in an AT&T [redacted].  Since the Government does not own the equipment required to provide this service, the Government cannot simply turn operations over to another vendor.  Purchasing the existing equipment and turning it over to another vendor to operate is not possible, since the AT&T owned facility is the heart of the current DVS.  AT&T is the only vendor with the capacity to incorporate dial-up and dedicated Video Teleconferencing Facilities (VTFs), while providing classified support at the level of security required in the time frame available.  Prospective offerors would require significant training time and would need time to acquire facilities, computers, and arrange hardware installation. All of these functions would involve considerable additional cost to the Government.  Failure to provide additional time and money would result in the DoD's inability to support its VTCs capability to support its daily military mission.  To maintain operational readiness and continuous capability to perform its primary mission, the DoD cannot afford any disruption of DVS-G services.  DoD currently uses VTC [redacted].   Secure VTC is considered [redacted].


 (b)    Accordingly, AT&T is the only firm capable of providing the VTC services without an unacceptable delay.  Based upon the past success of AT&T, with the operations of DVS-G network/hub facilities, it is proven they have the unique ability and capability needed to maintain the current application.  AT&T has been a consistent force and an important player in Defense VTC services.  If the continued services of AT&T are not available for use in this initiative, impacts to the Government could include: unacceptable delays in mission execution and considerable duplication of cost (e.g.., establishment of multiple operations centers, trouble management systems, and operational management for multiple systems, increased operating costs, loss of revenue, and an unsatisfied customer base).  Duplication of costs would include hardware costs for 6 Hub like-for-like architecture stand-ups, estimated at [redacted] for a total of [redacted].  (Costs are based on the current initiative for relocation and customer transition of the new [redacted] and a minimum time penalty of 12-18months before service would be restored to normal for the customer base).


(c)     Additionally, based on experience under the existing contract, AT&T proved they can continue to deliver immediate, functional video network/hub facilities, whereas the past experience with two other potential providers showed it would take approximately four plus years to design, develop and test a viable system.  This is an unacceptable delay as continued video telecommunication service is required by the Government at this point.


6.  FEDBIZOPPS Announcement/Potential Sources:  (FAR 6.303-2(a) (6)).


 The modification resulting from this action will be synopsized on the Federal Business Opportunities website.  The approval authority will be advised of any responses to the synopsis.  To date, no other sources have expressed an interest in writing.  The notices required by FAR 5.201 shall be published and any bids or proposals received shall be considered. 


7.  Contracting Officer Determination That The Anticipated Cost Will Be Fair And Reasonable: (FAR 6.303-2(a) (7)).


The price for the two year extension associated with [redacted] was determined to be fair and reasonable prior to execution of the modification.  The Contracting Officer determined that the negotiated price for [redacted] was fair and reasonable based on price comparison of the proposed prices with current market prices and comparison of previously proposed prices and previous Government contract prices with the proposed prices for the same items.  The close-out costs will be negotiated after the Government gives the Contractor a deactivation notice, and the Contractor's proposal is received.    


8.  Description of Market Research:  (FAR 6.303-2(a) (8)).


Market research was conducted among the major telecom vendors: AT&T, Sprint, and Verizon.  All of these vendors currently offer video bridging services in the commercial environment.  Commercial services do not meet the Government's requirements for secure (classified) service nor its reliability of 99.6% vs. industry average 90%.  In addition, the Government's major user base is on dedicated transmission links, while commercial services are offered over Integrated Services Digital Network (ISDN) dial links.  Based on past experience, it would take up to 24-months for a vendor to develop, implement, test, and transition a secure application of this magnitude.  Due to the excessive projected duplicated costs and the schedule risks involved, AT&T is the only feasible source to provide this service.  As previously stated in paragraph 5, duplication of costs would include hardware costs for [redacted] like-for-like architecture stand-ups, estimated at [redacted] for a total of [redacted].  Since AT&T owns the majority of the current infrastructure [redacted] Government ownership, with the exception of the [redacted] equipment and the forthcoming [redacted] and the proprietary software, any potential vendor would need to build new infrastructure to support this requirement. 


9.  Other Facts Supporting The Use of Other Than Full And Open Competition:  (FAR 6.303-2(a) (9)).


The terrorist attacks of September 11, 2001 and DOD's response have significantly altered the complexion of the required application.  DVS-G has seen a 20-fold increase in classified conferences, going from 2% to over 50% of total minutes for classified use.  There has also been a change from primarily prescheduled static conference requests to an on-demand service. Request for DVS-G services has also grown from 50 to over 200 new customers per year. These represent major changes in requirements and the technical means to fulfill them. To meet the current contingency, management instructed DVS-G operations to populate existing multipoint control units (MCUs) to capacity and add new MCUs to [redacted].


In addition, given the current national crisis, it would be unwise to disrupt this [redacted] tool at this time.  DVS-G provides [redacted].  Putting these services on hold for some months to replace the existing system [redacted].  This ceiling increase will allow a continuation of service during this critical time.


10.  Listing of Interested Sources:  (FAR6.303-2(a) (10)).


To date, no written responses have been received to the FEDBIZOpps notice, however, all offers received shall be considered.


11.  Actions Taken to Remove Barriers to Competition:  (FAR 6.303-2(a) (11)).


In future acquisitions, the Government will consider any source that is capable of receiving an Authority to Operate (ATO) by the Defense Security Accreditation Working Group (DSAWG), is capable of obtaining a certificate of security accreditation by the DISA Designated Approval Authority (DAA), and is able to provide secure video service.  This invaluable service can not be duplicated at this time by another contractor without significant delays, costs and disruption of critical service.  This contracting action is to increase the ceiling to cover costs associated with the [redacted] that were unanticipated at the onset of the current contract extension.  The ceiling increase is required to support exercise of the second six-month option period beginning on 1 June 2010.  Current contract planning is underway to support a [redacted] sole source contract with AT&T.  During performance of this [redacted] sole source contract, it is anticipated that the future DVS-G requirement for a presently undetermined system will be conducted as a small business set-aside or in a full and open competitive environment as part of the [redacted] acquisition.  However, as the Government has not yet defined the follow-on system, the use of several option periods will allow for transition to the future system when fielded.  Due to the proprietary features of their software, AT&T's ownership of existing infrastructure equipment and the limited timeline for delivery of service, AT&T is the only source that can provide the uninterrupted continuation of service.  The requiring activity is currently preparing specifications that will be adequate for full and open competition on a follow-on requirement.  Market research will be performed for the follow-on requirement to identify all potential sources.  [redacted] currently in contract planning, has a target date for Request for Proposal release [redacted].  Considering system IOC and the time associated with DVS-G customer transition to [redacted]DVS-G services will need to remain in some capacity until [redacted].       


12. Reference to the Approved Acquisition Plan (AP):  (DARS 6.303-2) (a) (S-91)).


This justification document is associated with the previously approved acquisition plan dated 21 October 2008, version 1.6.  A revised acquisition plan dated [redacted] is currently being routed for signature and approval in conjunction with this document.


TECHNICAL AND REQUIREMENTS CERTIFICATION (FAR Subpart 6.303-1(b) and DARS Subpart 6.303-1(b)).  I certify that the facts and representations under my cognizance which are included in this justification and which form a basis for this justification are complete and accurate.







[redacted]                                   DISA  [redacted]     703-882-[redacted]  Date







[redacted]     DISA  [redacted] 703-882-[redacted]  Date


CONTRACTING OFFICER CERTIFICATION  (FAR Subparts 6.303-1(a), 6.303-2(a)(12))

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




[redacted]                                   DITCO/PL8223        618-229-[redacted] Date



This justification is determined legally sufficient.





[redacted], DITCO Attorney Advisor     DD/DT  618-229-[redacted]  Date [redacted]



I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief.  Since this Justification for OTFAOC exceeds $78.5M, this review serves as approval.


APPROVED BY:  (FAR 6.304(a) (4)  & DFARS 206.304)





[redacted]                                                              DISA [redacted] Date

Senior Procurement Executive



[redacted], COR, DISN Video Services 703-882-[redacted]




12 August  08 - Version 1.0

10 September 08 - Version 1.1

19 September 08 - Version 1.2

12 March 10 - Version 1.3


2300 East Dr.
Building 3600
Scott AFB, Illinois 62225-5406
United States
Patricia E Hilton,
Contracting Officer
Phone: 618-229-9450
Fax: 618-229-9174
Cheryl L Wilsing,
Contract Specialist
Phone: 618-229-9145
Fax: 618-229-9174