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I.      About Sandia

        Sandia National Laboratories (“Sandia”) is a multi-program engineering and science laboratory
        operated by Sandia Corporation, a Lockheed Martin Company, for the US Department of
        Energy’s National Nuclear Security Administration (NNSA). Sandia is a Government Owned
        Contractor Operated (GOCO) facility. Through science and technology, people, infrastructure,
        and partnerships, Sandia’s mission is to meet national needs in six areas:

                     o    Nuclear Weapons
                     o    Nonproliferation
                     o    Homeland Security and Defense
                     o    Energy, Climate and Infrastructure Security
                     o    Defense Systems and Assessments
                     o    Science, Technology, and Engineering

II.     Current State

        Contracts for computer support and telecommunication services currently expire on September
        30, 2012 and may be extended. Because Sandia’s primary purpose is to serve the national interest
        with regard to security, its Information Technology (IT) requirements have broad, diverse, and
        often conflicting drivers and requirements. The research and development nature of Sandia’s
        environment creates strong demand for IT services that are efficient, innovative, and modern.
        Highly reliable IT services that work well under an evolving policy framework are crucial to
        Sandia’s 13,000 members of the workforce in a mission-critical setting.

III.    Future State

        Today Sandia's information technology services are obtained through many different contract
        types. The goal is to create efficiencies across Sandia through a reduced number of flexible
        contract vehicles. Sandia envisions IT services will continually evolve to a more integrated
        structure. Sandia is striving to integrate the contracting methodology of enduring IT services
        across IT functional areas and locations, and enable the services to be delivered efficiently and

        Sandia’s IT services must be flexible, scalable, business-aligned, cost optimized, and consistently
        delivered. Together they must represent the best value for information technology services and
        staffing. Sandia has applied lessons learned from sourcing comparable functions over the last
        decade. We have organized the services into three Awards, each having distinct characteristics,
        goals, objectives, funding, and client orientation. Each Award is anticipated to have a concurrent
        term of 84 months (7 years).

IV.     Journey

        Three Awards–including one small business set-aside–will result from this RFQ. Milestones in
        the procurement process include release of the RFQ, a pre-proposal conference in February 2012,
        finalized negotiations of terms in August 2012, and notice of award in February 2013. This

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        timetable acknowledges DOE and NNSA reviews and approvals. Based on this timetable, Sandia
        requires that all proposals be valid for a minimum of 12 months.

V.      Scope

        An Offeror may submit a separate proposal for each of the below stated awards. However,
        Sandia will select the order of Awards. Once selected, no Offeror will be eligible to serve as a
        prime contractor on more than one Award. The combined contract value is forecasted at
        approximately $500M over 7 years starting in February 2013.

        A) Award A is a firm fixed price contract for telecommunications services. Additional resource
           charges and reduced resource credits (ARCs and RRCs) are the pre-arranged mechanisms to
           accommodate changes in the scope of work. This contract covers the support and
           provisioning of specific telecommunication information technology services for
           approximately 25,000 fixed telephones and 30,000 user host devices. These services include
           network, telephone, and wired & wireless communications services to the Sandia workforce.
           Sandia’s intent for this contract is to provide a differentiating advantage to Sandia, one that
           allows innovative solutions to new, complex, large-scale, and high-risk problems in a
           minimum of time and at reduced cost. The current telecommunications infrastructure
           systems being supported under this contract consists of the telecommunications network &
           telephone equipment, the wired and wireless communications infrastructure, and the
           management applications necessary to distribute telecommunication services. The “scope of
           the contract” covers the operations, maintenance and service support for Sandia’s
           telecommunications network and telephone infrastructure that resides on Kirtland Air Force
           Base (“KAFB”) as well as support for remote work sites which includes the Sandia Science
           and Technology Park and other remote offices. Sandia is approximately 75% complete with
           a project that replaces our unclassified traditional three tier network architecture of switches
           and routers with a Gigabit Passive Optical Network infrastructure (“GPON”). GPON
           delivers fiber optic cable and connections directly to the end user at Sandia locations. This
           new infrastructure will facilitate our eventual conversion from a TDM-based telephony
           infrastructure to a VoIP telephone system. Sandia retains financial and operational
           responsibility of the telecommunications infrastructure including the physical layer of wiring
           and cabling up to the application stack for monitoring and control. An objective of Award A
           is to continue to meet the stringent national security requirements and keep tight control of
           the telecom infrastructure. This contract is anticipated to have an approximate value of $53m
           over 7 years.

        B) Award B (Small Business Set-Aside) is a firm fixed price contract for enterprise computing
           services. Additional resource charges and reduced resource credits (ARCs and RRCs) are the
           pre-arranged mechanisms to accommodate changes in the scope of work. This contract
           covers the support and provisioning of specific information technology services for Sandia
           National Laboratories with a workforce of approximately 13,000. Sandia delivers
           conventional end user services and support from a centralized service desk and at the
           customer's desk that is accessible to all of Sandia (resident and remote). This award will
           consolidate services that are now being performed by three Contractors. End user support
           also includes management of distributed servers that are not in the corporate data center.
           Some of the work in Award B appears similar to the work in Award C. The difference in the
           small portion of work that is similar in Award B and C is related to the sensitivity of the
           information (classification) that resides on the systems. Key objectives for this award are to
           reduce the number of suppliers, continually increase the quality of services delivered, benefit

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             from continued commoditization, attract innovation, and drive additional economies of scale.
             This contract is anticipated to have an approximate value of $161m over 7 years.

        C) Award C will be a labor hour contract for Mission Computing services that will include: IT
           research, development, and integration of IT capabilities; high performance computing,
           desktop services; cyber security; and central hosting computing. Sandia has six broad
           missions that collectively fund information technology projects and services from hundreds
           of individual sources. While the skills and activities for Award C are similar to Award B, the
           work is distinguished by the following: IT personnel assigned to mission projects work
           closely with the Sandia scientists and engineers on the mission project team. The length of
           assignment varies based on the needs of the mission, with some of short duration while others
           require years. Typically, these IT services are delivered through small teams. The services
           are individualized and tailored to the unique needs of a national security mission. Today the
           mission obtains IT services through a variety of contract labor agreements. An objective of
           Award C is to consolidate the numerous mission requirements that are currently obtained
           through multiple contract vehicles. The amount of work performed in Award C will
           ultimately be dependent upon the success of the Contractor’s performance and Sandia’s
           continued need for unique mission support services. This contract is anticipated to have an
           approximate value of $253m over 7 years.

VI.     Small Business Set Aside

        Award B has been designated as a Small Business Set-Aside under the proposed RFQ. Sandia is
        dedicated to strengthening our national and regional economy by providing contracting
        opportunities for small and socio-economic businesses. The Small Business Administration
        (SBA) has established numerical definitions, or size standards that represent the largest size that a
        business may be, in order to remain characterized as a small business concern. These standards
        are matched to the North American Industry Classification System (NAICS) codes. The NAICS
        codes and size standards identified for Award B for small business concerns are:

                541513 – Computer Facilities Management Services (size $25m annually)
                811212 – Computer and Office Machine Repair and Maintenance (size $25m annually)
                541519 - Other Computer Related Services (size $25m annually)

VII.    Structured RFQ

        Sandia is enabled by a rigorous, analytical, and comprehensive process to obtain the best value
        for IT services. Sandia stakeholders were consulted and their requirements are incorporated with
        diligence and care. The printed RFQ for all 3 Awards combined is approximately 480 pages.
        Sandia’s typical Solicitation Instructions, Section I clauses, and Section II terms and conditions
        are included in the RFQ, and the overall format is different than what Sandia traditionally
        releases. Throughout the RFQ, Sandia describes functional requirements. Each of these
        requirements is serialized and requires a response of "Meets Requirement" or "Meets
        Requirement with Alternative." Where the Offeror specifies "Meets Requirement with
        Alternative," it must follow the instructions in the RFQ to properly define the suggested
        alternative. Because of the overall scope and the format of the RFQ, Sandia is planning to
        continually communicate with the supplier community through its dedicated web page
        ( and will also hold
        a pre-proposal conference tentatively scheduled for February 2012.

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        Content and Detail

        Sandia’s RFQ will be distributed as a ZIP file with 11 Exhibits (0-10) and underlying
        Attachments. Exhibits clearly define the requirements for all Awards. Attachments tailor an
        Exhibit to a specific Award. For example, Exhibit 04 is the Statement of Work; Attachment 04-A
        defines additional SOW detail that is pertinent to Award A. The Exhibits in the RFQ are as

        00 – Solicitation Instructions - Contain the instructions to answer the RFQ and submit a
        compliant Proposal in a prescribed format. Includes sourcing strategy information.

        01 – Proposal Index - Index used by Offeror to make certain its proposal is complete within the
        page limits. The index is returned with the Proposal so Sandia can quickly determine its scope.

        02 – Terms & Glossary (including Attachments for A, B, C) - Contains the terms and conditions
        that will govern the contract as well as a Glossary of words used throughout the RFQ.

        03 – Pricing (including Attachments for A, B, C) - Defines a financial responsibility matrix
        outlining who pays for what, a personnel projection matrix to propose staffing levels, and a set of
        pricing forms for transition charges, base charges, pass-thru expenses, value adds, and labor rates
        depending on the specific Award.

        04 – Statement of Work (including Attachments for A, B, C) - Describes routine technical and
        operational requirements, such as answering requests for technical support and conducting remote
        problem resolution activities. Mandates compliance with ITIL processes and other IT technical

        05 – Talent Model (including Attachments for A, B, C) - Consolidates what is now 500+
        contractor employees into five staff titles and three management titles. The defined Infrastructure
        Job Family sets out the standard job titles, skill requirements, education minimums, and career
        progression path.

        06 – Service Levels (including Attachments for A, B, C) - Defines minimum and expected
        service levels. Sets degree of importance with general performance indicators (GPIs), key
        performance indicators (KPIs) and critical performance indicators (CPIs). Explains how service
        level credits are assessed, earned back, and/or paid out by the supplier. Establishes critical
        deliverables and acceptance criteria.

        07 – Governance - Announces the Sandia Contracting Representative (SCR) and Sandia
        Delegated Representative (SDR) roles, and explains how the supplier will interface. Establishes a
        governance committee that acts through the authority of the (SCR). 08 – Technology Standards
        (including Attachments for A, B, C) - Explains how and where Sandia deploys various
        technologies, such as server virtualization. Sets a life cycle based on what technologies are
        emerging, mature, and declining. Supplier drafts technology recommendation and impact
        analysis as inputs to training.

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        09 – Safety (including Attachments for A, B, C) - Includes the standard requirements for
        classified matter, foreign ownership and control, environmental safety and health, and integrated
        safety management system.

        10 – Potential Projects - Supplier complies with plan/build/run life cycle for projects. No project
        work is included in the price. Summarizes the plan and status of approximately 90 projects.

VIII.   Mandatory Criteria

        The following mandatory criteria will be included in the RFQ. Offeror must meet each applicable
        mandatory criterion to be considered for award.

    1. FURNISH FOCI – 980B04 (11-08). Offeror represents that it can and will obtain FOCI
       certification at the time of award. For clarity, there is not a requirement to presently be FOCI-
       certified; the requirement is to attest that FOCI certification can be obtained when the contract is
       awarded. A Foreign Ownership, Control, or Influence (FOCI) determination (facility code/cage
       code) is required for this effort. Review the information noted below. Notify the Sandia
       Contracting Representative immediately if Offeror’s firm has foreign ownership, officers, or
       other interests that may jeopardize the Offeror’s ability to obtain/retain FOCI certification, as it
       may render the Offeror unable to perform the Services. An Offeror that does not have FOCI
       certification must apply for FOCI upon being awarded a contract. Prior to award, the intended
       awardee will be required to submit the appropriate documentation identified below, if any of the
       conditions identified below apply:
       A. Access and electronically submit a complete Foreign Ownership, Control, or Influence
           Package by using E-FOCI as required by DOE/NNSA, if any of the following conditions
           1. Offeror does not have an active facility clearance, which is granted upon favorable FOCI
           2. Five (5) years have lapsed since the last FOCI determination was rendered,
           3. Significant changes have occurred in thresholds since the last FOCI determination, or
           4. Changes have occurred in ownership or control of the Offeror and/or any tier parent(s).
       B. If the Offeror already has an active facility clearance, and none of the above conditions apply,
       provide either:
           1. The Department of Energy/National Nuclear Security Administration (DOE/NNSA)
                approved FOCI certification (including the Facility Code for the company) and
                supporting documentation, OR
           2. The most current (must be less than one year old) Department of Defense form SF 328
                entitled "Certificate Pertaining to Foreign Interest", supporting documentation, and
                certification that the SF 328 remains accurate, current, and complete.

    2. All Offerors for Award B must certify that they are a small business for the NAICS codes
       specified for Award B in the solicitation instructions contained in the RFQ.

    3. Offeror affirms that as of the Proposal Due Date, Offeror and all of its subcontractors have
       documented relevant experience as follows:
            All Awards: Basic operational ITIL® experience
            Award A: Five years 5-ESS switch support
            Award B: Five years in service desk and desktop support

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                   Award C: Five years in high security technical environments and five years in High
                    Performance Computing

      4. Offeror shall have an established local office within 50 miles of Sandia National Laboratories,
         Albuquerque, NM or shall commit to establish and maintain a local office within 30 days of
         contract award.

IX.       Best Value Determination

          Best value will be determined through an evaluation of both price and technical capabilities.
          Offeror shall quote its most favorable terms, since any contract or agreement resulting from this
          solicitation may be awarded on the basis of initial offers. Technical Proposals will be evaluated
          against the following criteria:
          1. Solution Summary
          2. Past Performance and Related Experience
          3. Salary, Benefits and Training
          4. Productivity Gains
          5. Governance
          6. Transition Plan

X.        Pricing

          Pricing for Awards A and B will be submitted within Offeror’s Business Proposal by the
          submission due date. Minimum and maximum salary ranges and maximum G&A for Award C
          shall be submitted with Offeror’s Business Proposal using the grid found in the Pricing
          Attachment for Award C. Pricing for the fully loaded billing rates for Award C will be obtained
          via Reverse Auction at a date to be determined.

XI.       Milestones

          These are the estimated dates associated with the RFQ and subsequent award.

          Nr.         Date                       Milestone
          1           February 2012              Issue RFQ
          2           February 2012              Pre-Proposal conference
          3           April 2012                 Proposal due date
          4           February 2013              Issue notice of award(s)
          5           April 2013                 Start period of performance (subject to dates above) Note –
                                                 timeframe from Award includes a 2 month transition

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XII.    Solicitations Process

        Each Offeror is required to submit their intent to bid through Sandia's Opportunities' website at Through this process, Sandia will compile
        a bidder's list. Only those Offeror's on the bidder's list will receive the RFQ. In addition, all
        Offeror's are required to register their company information through Sandia's iSupplier portal.
        Information regarding iSupplier registration can be found at

        Sandia will not accept questions during the posting process. Questions and answers will be
        allowed once the RFQ has been released and a process for submittal of those questions will be
        communicated at the same time.

XIII.   Conclusion

        Sandia wrote the RFQ in a most transparent way in order to facilitate truly best in industry
        responses. The expected result is compliant proposals differentiated primarily by their credibility,
        suitability, and price. The resulting awards will have the framework to meet Sandia’s vision to
        integrate IT services that can be delivered efficiently and fluidly to both enterprise IT and mission
        customers at Sandia.

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