The Aerospace FFRDC Support
Added: Oct 21, 2013 6:34 pm
JUSTIFICATION AND APPROVAL (J&A) DOCUMENTCONTRACTING ACTIVITY: Space and Missile Systems Center (SMC), Federally Funded Research and Development Center (FFRDC) Management Office, SMC/PIC and SMC/PKEPURCHASE REQUEST/LOCAL IDENTIFICATION NUMBER: J&A #13-27, FA8802-14-R-0001PROGRAM NAME: The Aerospace FFRDC Support for Fiscal Year 2014 through Fiscal Year 2018Type of Program: Other ContractingAUTHORITY: 10 U.S.C.2304(c)(3), as implemented by FAR 6.302-3(a)(2)(ii)TYPE J&A: IndividualJUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITIONI. Contracting ActivitySpace and Missile Systems Center (SMC), Federally Funded Research and Development Center (FFRDC) Management Office, SMC/PIC and SMC/PKE, Los Angeles Air Force Base, CA.II. Nature And/Or Description of the Action Being ProcessedThis is an individual Justification & Approval (J&A) for a new Cost Reimbursable contract with The Aerospace Corporation, El Segundo, CA. The contract will be comprised of a one (1) year basic contract for FY 2014 and four (4) one-year options for FY 2015 through FY 2018. As a direct delegation from the Sponsor (SAF/AQ) to SMC/CC, this program for general systems engineering and integration support is designated "Other Contracting" as defined by Air Force Federal Acquisition Regulation Supplement (AFFARS) 5302.101.The proposed acquisition, for general systems engineering and integration support for the National Security Space (NSS) mission, is for the Air Force, the National Reconnaissance Office, other Department of Defense (DOD) agencies, the intelligence community, as well as limited non-DOD organizations. The five year contract duration is required to satisfy the special need for long-term support from the Aerospace Federally Funded Research and Development Center (FFRDC). The goal of this contract structure is to provide a contract vehicle that permits objective and independent support, in accordance with Federal Acquisition Regulation (FAR) 35.017(a)(4) and to foster the required program continuity, stability, and long-term relationship.CPFF has been selected as the contract type due to the uncertainties in performance (i.e., constant changes in the level of effort and technical requirements), which do not permit cost to be estimated with sufficient accuracy over five years. A CPFF contract will effectively enable the DoD flexibility to accommodate dynamic space program challenges (e.g., on-orbit anomalies) and urgent requirements for FFRDC assistance when the Government's primary space development contractors (and their subcontractors) experience difficulties (e.g. significant test failures) in highly diversified technical areas.Long-term business arrangements between the Government and its FFRDCs are necessary to attract high-quality personnel to the Aerospace FFRDC. A 5-year contract encourages the FFRDC to retain engineering and technical personnel in order to maintain continuity in its field(s) of expertise, ensure its objectivity and independence, and preserve its familiarity with the needs of the sponsor to provide a quick response capability pursuant to FAR 35.017(a)(4).III. Description of Supplies/Services Required to Meet the Agency's NeedsThe role and capabilities provided by the Aerospace FFRDC is critical in enabling the National Security Space (NSS) community and civil agencies with space efforts affecting that community to respond to the challenges of the changing nature of space warfare. To meet this requirement the Air Force uses the highly specialized Aerospace FFRDC expertise across the industry for both organizations and missions including acquisition product centers, research labs, operational units, and headquarters and policy organizations. The Aerospace FFRDC performs general life cycle systems engineering and integration for the National Security Space Community. It provides planning, systems definition and technical specification support; analyzes User needs, design and design alternatives, interoperability, manufacturing and quality control; assists with test and evaluation, launch support, flight tests, orbital operations, integration of space systems into effective systems of systems; and appraises the technical performance of contractors and program execution. The Aerospace FFRDC provides direct life cycle support through program definition; creation of plans and architectures; specification of technical requirements; systems integration; analyses of design and design alternatives; and integration of new capabilities into existing systems. The FFRDC is able to leverage its broad involvement across DOD programs and supports technology activities.The Aerospace FFRDC provides experts and resources capable of handling detailed systems engineering and integration support within the program office rather than "engineering management" efforts. This level of involvement serves to establish the FFRDC as an integral member of an NSS program and provides government managers with the required systems engineering and specialty engineering expertise and reach back to deal with increasingly complex and highly integrated NSS systems. The Aerospace FFRDC must have both the breadth and depth of knowledge and involvement across DOD to provide full technical support to NSS systems integration. Without such a broad base of involvement, overall NSS integration would be jeopardized. Other specialized needs include the following: (1) the ability to work closely with industry, academia, research labs, and the war-fighter to ensure solutions are developed from an enterprise-wide/cross-program perspective and experience base; (2) the continual availability of high quality scientists and engineers needed to address a myriad of complex space issues in sufficient quantities to meet demand; (3) the requisite skills, technical depth, and a continuity of experience with space systems to meet the challenges of rapid technology advances, changing mission roles, unprecedented systems, conflicting requirements, and complex interoperability issues critical to the success of NSS; (4) an independent perspective on critical space issues and technological developments; (5) the ability to be a trusted agent, with special access to government and contractor sensitive and proprietary information (including intelligence data and program planning information) for the entire range of NSS systems in order to support internal planning, source selections, and other actions that demand a unique degree of objectivity and trust in their employees and facilities.The NSS mission requires an organization that can recruit and sustain highly skilled engineers, retain or terminate these employees as technologies change, reassign key technical personnel as DOD priorities dictate, and create teams familiar with recent developments across the NSS community.Aerospace FFRDC must be operated in a manner that is objective, independent, and free from Conflicts of Interest (COI), with high technical competence in all space-related engineering and technical skills, with extensive experience and facilities, with the ability to provide continuity of effort on programs that might take decades to complete, and most importantly, maintain a corporate space memory that can be applied to current and emerging challenges. The combination of ceiling limitations, limits on non-FFRDC work, definition of core work, and stringent restrictions on their scope, method of operations, customer base, and the kinds of efforts they can undertake with the FFRDC or other entities ensures the FFRDC will not exploit its special relationship with the Government.IV. Statutory Authority Permitting Other Than Full and Open CompetitionThis action is authorized under 10 U.S.C. 2304(c)(3) as implemented by FAR 6.302-3(a)(2)(ii), which states that "Full and open competition need not be provided for when it is necessary to award a contract to a particular source in order to... ...establish or maintain an essential engineering, research, or development capability to be provided by an educational or other non-profit institution or a federally funded research and development center."V. Demonstration That the Contractor's Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (Applicability of Authority)The application of FAR 6.302-3(a)(2)(ii) is contingent upon receiving a Sponsoring Agreement based upon a Comprehensive review establishing a continuing need for the Aerospace FFRDC and that no other entity can perform this function.In accordance with FAR 35.017-4(b), approval to continue or terminate sponsorship of the Aerospace FFRDC rests with SAF/AQ. Sponsorship is based upon a Comprehensive Review of the use and need for the FFRDC. The Comprehensive Review includes consideration of alternative sources to meet the sponsor's needs pursuant to FAR 35.017-4(c)(2).The Aerospace FFRDC was established specifically to provide objective and independent engineering support to the Sponsor, DOD, and other Government agencies as approved. The Aerospace Corporation has extensive knowledge of NSS systems to meet the needs of the Air Force and the intelligence community. The Aerospace Corporation's vast technology base and fast response capability are necessary to allow the Air Force to respond to new and high priority short-term requirements. The utilization of the FFRDC's pool of technical experts strengthens the Sponsor's overall resource capabilities and reduces risk by providing a ready capability with experts already familiar with the DOD, intelligence, civil, commercial, and international space programs. These advantages increase the probability of achieving mission success. For over fifty years, the Air Force has had a strategic relationship with the Aerospace Corporation operating the Aerospace FFRDC to provide highly specific systems engineering and integration support for many significant NSS programs. The current contract supports 160+ users.The Aerospace Corporation's unique position as the operator of the Aerospace FFRDC provides the Air Force with a perspective that is free of potential or perceived Organizational Conflict of Interest (OCI). The Aerospace Corporation has visibility across national security, commercial, and international space systems and is therefore in a better position to address cross-cutting issues and work at an enterprise acquisition level which enhances the NSS mission. Other FFRDCs may provide similar types of engineering support to the Air Force in some areas; however, the Aerospace FFRDC is highly specialized with respect to the space mission in a way other FFRDCs are not. The Aerospace Corporation has an extensive history with the successes and failures of space programs across the Air Force, DOD, intelligence, civil, commercial, and international communities. No other contractor, or FFRDC for that matter, could bring their level of expertise to these mission areas in a manner that would meet the needs of the NSS.As long as the Sponsoring Agreement is current or continues to be renewed, The Aerospace Corporation will remain the only non-profit institution that can operate and maintain the Aerospace FFRDC. Therefore, a sole source contract is appropriate.The current Sponsoring Agreement for The Aerospace Corporation to operate the Aerospace FFRDC is dated November 13, 2008 and expires November 12, 2013. The new Sponsoring Agreement for the Aerospace FFRDC is in the final review cycle and is expected to be approved August 2013.VI. Description of Efforts Made to Ensure that Offers Are Solicited From as Many Potential Sources as Deemed PracticableWhile no requirement exists to obtain competition for the reasons cited in Section V, FAR 35.017-4(a) provides that in reviewing FFRDCs "the sponsor, prior to extending the contract or agreement with an FFRDC, shall conduct a Comprehensive Review of the use and need for the FFRDC." This review ensures there remains a requirement for the FFRDC and includes consideration of alternate sources to meet the sponsor's needs. The Comprehensive Review considered alternatives in industry, academia and other FFRDCs. Academia and industry do possess the breadth and depth of knowledge and experience in the highly specialized areas that the Aerospace FFRDC supports. Competition among the FFRDCs is not considered viable due to the highly specialized nature of the Aerospace FFRDC support. Other FFRDCs are neither in a position to absorb the sheer volume of work, nor do they possess The Aerospace Corporation's highly specialized expertise in these areas. Most of the work is outside of their own highly specialized areas of expertise. In most cases, The Aerospace Corporation would not be able to perform the work done by other FFRDCs. Historically, the Air Force Sponsor has prevented the Aerospace FFRDC from expanding into non-NSS areas over concern it would dilute their focus on that mission area. The determination was made that no alternatives exist that meet DOD's needs for the Aerospace FFRDC.VII Determination by the Contracting Officer that the Anticipated Cost to the Government Will be Fair and ReasonableThe Contracting Officer will determine that the anticipated cost to the Government will be fair and reasonable. The Aerospace Corporation will be required to provide certified cost or pricing data with its proposal. The proposal will be developed in accordance with the Air Force Proposal Adequacy Checklist. This data will be used to support the Government evaluation of the proposed estimated costs. In addition, the estimated and actual cost history on prior Aerospace contracts will be used to evaluate the proposed estimated cost to be both reasonable and realistic (FAR 15.404-1). A proposal evaluation will be accomplished by the Program Office and field audit assistance will be provided by the resident Defense Contract Audit Agency (DCAA) auditors. The resident Administrative Contracting Officer (CACO), DCAA auditors, and Government Quality Assurance Personnel (QAP) will also provide, on a full-time basis, the surveillance required to monitor a cost reimbursement contract after award.VIII Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research was not ConductedSources Sought Synopsis on FedBizOpps is not required per FAR 5.202(a)(10)As outlined in the Comprehensive Review Report, market analysis was conducted. Market analysis was limited to contacting other possible FFRDCs for interest in the Aerospace requirement and verification that for-profit contractors could not perform the FFRDC work. Comprehensive Review market analysis requirements for the FFRDC are outlined in FAR 35.017-4(c).In November 2012, the program office contacted California Institute of Technology (Jet Propulsion Laboratory FFRDC) to discuss possible performance of the Aerospace requirement. Caltech is the only FFRDC with the established and approved scope to perform the work required for the NSS mission. Two things were addressed 1) ability/interest of Caltech to operate the FFRDC and 2) the feasibility of using the JPL FFRDC in lieu of the Aerospace FFRDC. Caltech expressed no interest in managing the Aerospace mission since they view their mission as scientific rather than military. Introducing the military environment would incur a multitude of changes that Caltech did not wish entertain. Also, the JPL FFRDC develops and delivers space systems. If they were to perform the Aerospace FFRDC there would be a direct conflict with the current Aerospace FFRDC prohibition against the manufacture, production, or sale of any production systems (hardware or software) for operational use. JPL also does not have the capacity of the program experience with military space systems to readily assume responsibility of the Aerospace FFRDC mission.In September 2012, Defense Acquisition University performed a survey of all 160+ users for the Aerospace FFRDC. In October 2012, the analysis of the survey results concluded, by all users, that for-profit industries are not a feasible alternative to the Aerospace FFRDC primarily for the reason that led to the creation of The Aerospace Corporation in the first place-the potential for COIs. Private profit-making industry fails to meet DOD requirements for freedom from COIs and absence of bias due to manufacture of particular product lines.The program office did an internal review of organic resources and identified that there is not an in-house Government work force available with the required, size, skill mix, experience, or physical equipment and facilities necessary to successfully accomplish the work. Even if the government was able to attract more technically trained civil servants to Los Angeles, these same civil servants would likely be lured in to the commercial sector due to the higher salaries available for the level of experience required.IX. Other Facts Supporting the Use of Other Than Full and Open CompetitionProcurement history: The Aerospace Corporation has provided systems engineering and integration support to the Air Force and other DOD agencies in the field of command, control, communications, and intelligence systems since 1960, when it was formed as a not-for-profit corporation. With the publication of the new DOD FFRDC Management Plan in April 2011, sponsorship was transferred from SAF/US to SAF/AQ.Regulatory guidance and direction: The Aerospace FFRDC is subject to the regulatory guidance and direction of the Under Secretary of Defense for Acquisition, Technology and Logistics (USD (AT&L)).(1) Contract numbers and dates of the last two awards: FA8802-04-C-0001 (FY2004 through FY2008) effective date 1 Oct 2003 including an extension of services for the month of Oct 2008 and FA8802-09-C-0001 (FY2009 through FY2013) effective date 01 Nov 2008.(2) Competitive status of these actions: Sole-source contracts for the FFRDC awarded to The Aerospace Corporation.(3) Authority for other than full and open competition previously used: 10 U.S.C. 2304(c)(3) and FAR 6.302-3(a)(2)(ii).X. List of Sources, If Any, That Expressed Intereest in the AcquisitionNoneXI. A Statement of the Actions, If Any, The Agency May Take To Remove or Overcome Any Barriers to Competition Before Making Subsequent Acquisitions For The Supplies Or Services RequiredSince maintaining the Aerospace Corporation's essential capability for engineering/development is critical, FAR 35.017(a)(4) encourages long-term relationships with FFRDC's to provide the continuity needed to attract high-quality personnel to the FFRDC, maintain currency in its field of expertise, preserve familiarity with the needs of the Government, and provide quick response capability---- all of which presents a barrier to competition. The FFRDC environment has limited growth potential due to potential violation of other sponsor agreements. However, while long-term relationships are encouraged, the Government performs a comprehensive review every five years on the use and need of the Aerospace Corporation to support the DOD mission. The government also ensures that all program requirements receive an annual review, upon exercise, of each option to make sure the Aerospace FFRDC does not extend beyond its intended purpose.XII Contracting Officer's CertificationThe Contracting Officer's signature on the J&A Document evidences that she has determined this document to be accurate and complete to the best of her knowledge and belief in accordance with FAR 6.303-2(b)(12).XIII. Technical/Requirements Personnel's CertificationAs evidenced by their signatures on the Coordination and Approval Document, the technical and/or requirements personnel have certified that any supporting data contained herein, which is their responsibility, is both accurate and complete in accordance with FAR 6.303-2(c).
FA8802-14-C-0001 Department of the Air Force Space Command Space and Missile Systems Center
10/21/13, 6:34 PM