SLRSC JA - Signed redacted signatures.pdf

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JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY

Acquisition Office:

Launch and Range Systems Wing Spacelift Range Group (SMC/LRSW/LRRG)

Contracting Office Location:

SMC/LRSW/PK

483 N. Aviation Boulevard Los Angeles AFB El Segundo, CA 90245-2808

Contracting Officer:

Robert L. Nadeau DSN 633-1591, Commercial: (310) 653-1591

II. NATURE AND/OR DESCRIPTION OF ACTION BEING PROCESSED

The original SLRS contract was the result of a full and open, competitive selection process. The proposed contract action is an extension to F04701-01-C-0001, the Spacelift Range Systems (SLRS) Contract. The existing SLRS contract, a Cost Plus Award Fee (CPAF) contract, which expires on 31 October 2010, provides for the sustainment and modernization of the national space lift ranges. This contract action is intended to provide essential spacelift range sustainment support until the follow-on contract, Launch and Range Test System (LTRS) Integrated Support Contract (LISC), is awarded. LISC is scheduled to be awarded by 31 October 2011. This contract extension will include one base year, two 6-month options and a 3-month transition. The two 6-month options are only to cover any gap in the case that LISC is not awarded on time. If LISC is awarded on time, the 6-month options will not be exercised.

In the future, the SLRS effort is planned to be included as part of an integrated Range support contract (LISC). Support to the Spacelift Ranges is currently provided through three separate and distinct contracts. Eastern Range Technical Services (ERTS) supports Eastern Range operations, level-one maintenance and base operations support and is managed by the 45th Space Wing, Patrick AFB FL. Western Range Operations Communications and Information (WROCI) supports Western Range operations, level-one maintenance and base operations support and is managed by the 30th Space Wing, Vandenberg AFB CA. The third contract, SLRS, provides sustainment through level-two depot maintenance, logistics support and range modernization/upgrades and is managed by the Space and Missile Systems Center, Los Angeles AFB, CA. The complexity and workload of this new acquisition approach has caused unforeseen delays in developing the LISC competitive acquisition strategy.

III. DESCRIPTION OF SUPPLIES/SERVICES REQUIRED TO MEET THE

AGENCY’S NEEDS

The SLRS contractor supports national spacelift capability by providing systems engineering (SE), development, and sustainment functions for the LTRS located at the Eastern Range (ER) and Western Range (WR). This includes depot-level maintenance, modernizing the Instrumentation Segment, upgrading legacy systems, engineering, configuration and data management, supply chain management, and overall systems test and integration support throughout the acquisition lifecycle.

Depot Maintenance includes both Hardware and Software depot maintenance support such as Emergency/Unscheduled Depot Level Maintenance (E/UDLMs). E/UDLMs provide the critical support day-in/day-out, including emergency recovery from inoperative range LTRS conditions. The scheduled programmed depot maintenance, major overhauls, and software projects reduce future system failures and keep the range operation working until new systems are brought online. Without the entire sustainment chain of events including sustainment projects, depot maintenance, sustaining engineering, and supply chain management, the ranges would become inoperative very quickly with no critical space launches until the systems are repaired.

Instrumentation Modernization (IM) consists of upgrading the aging telemetry, command destruct, RADAR, weather, launch control compounds and the communications connectivity between them. Current efforts will replace legacy receivers, combiners, antennas, recorders and many other line items with digital technology. These systems bring information assurance to the range and increase the capability for classified operations.

IM projects enable the range to obtain higher fidelity data from launch vehicles while reducing operator costs and maintenance. More importantly, the items are sustainable and available on the commercial market. This reduces the number of single point failures currently experienced by discontinued hardware needed to maintain operational capability.

In summary, this J&A will provide approval for the following supplies and services:

1. Range sustainment includes one base year, a three month transition period, and up to two six-month option periods.

2. Potential execution of short-term, high priority completion projects with a delivery date of no later than 30 September 2013.

3. External User support, projects and engineering services (Missile Defense Agency, Navy, NASA, etc)

4. System Engineering

5. Interim Supply Support Spares for the sustainment period.

The total value for this contract extension action is $269M, including all options. The estimated values of the component efforts are: $109M for sustainment for the first year;

$45M for each 6-month sustainment option; $21M for the 3-month contractor transition (SLRS to LISC); and $49M for special LTRS projects. These estimates are based on historical experience over the past 9 years.

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND

OPEN COMPETITION

The statutory authority for this action is contracting by Other than Full and Open Competition, 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1(a)(2)(ii)(B), only one responsible source and no other supplies or services will satisfy agency requirements when it is likely that award to any other source would result in unacceptable delays in fulfilling the agency’s requirements.

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 current SLRS Contractor, ITT Corporation, is the only responsible source that can fulfill the SLRS contract requirements within the current schedule. Extending the current SLRS contract provides for uninterrupted ER and WR LTRS sustainment and limited critical project implementation, ensuring that both Ranges are “green” (available and reliable) for all vital National, civil, commercial, and DoD space launches and test actions. Without immediately extending the current contract period of performance for continued SLRS support until award of the follow-on LISC contract, there will be a break in LTRS sustainment/project support creating significant risk that the two ranges will go “red” or inoperable, due to aged LTRS equipment failing without the required depot/technical/engineering expertise immediately available to repair/recover mandatory range assets. As a result, DoD will fail to launch critical, National, civil, and commercial satellites, and fail to conduct essential aircraft and missile tests (e.g. MDA). In turn, these programs will slip, adding additional cost to the government, typically estimated at $1M per day for a space launch event. Overall, the nation cannot afford a gap in LTRS sustainment as it is required for range operations.

Today there are over 2200 LTRS components, allocated to both ranges, and the majority of this equipment is beyond currently supported versions for both hardware and software.

In addition, many of these critical range assets do not have accurate configuration information, therefore the sole ability to support these products is due to the technical/engineering expertise of the SLRS contractor, ITT. Without ITT continuous support, mandatory and required range assets will fail, crippling the ability of the ER and WR to support launch and test events. Much of this vital engineering/sustainment support is provided on an “urgent” and “emergency” basis, meaning with less than 24 hours notice, providing service in order to conduct billion dollar launch events. Note that there are over 15-30+ national launches across the ranges each year. Without question, when LTRS assets fail, it is the SLRS contract sustainment and experienced engineering support function that enables the government to repair the range and conduct these operations.

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL RESOURCES AS DEEMED

PRACTICABLE

A Sources Sought Synopsis for this extension was posted on FedBizOpps (FBO) 7 May 2010. The results of the Market Research for this contract extension are in VIII below.

The original SLRS contract was the result of a full and open, competitive selection process. An intense effort is currently underway to competitively award the follow-on contract, LISC. However, the LISC source selection has not been completed and the current SLRS contract will expire 31 Oct 2010. In the interim, the Government must immediately and continuously sustain the ranges’ capability to launch as well as add modernization projects to the current SLRS contract to avoid near and mid-term negative mission impacts. As described in the market research section below for this contract extension (see Section VIII), the government sought input from industry as to the viability of immediate sources via a sources sought synopsis, however, no respondent provided a statement of capabilities (SOC), nor was there any other information from industry that could be assessed by the Government as providing an adequate and immediate competitor to ITT.

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND

REASONABLE

The Contracting Officer anticipates the costs for this contract extension effort will be fair and reasonable. In accordance with FAR 15.403-4, the existing SLRS contractor will be required to again provide certified cost and pricing data. The Contracting Officer will make the determination based on, but not limited to, the extensive prior service contract history (9 plus years) and the following recommendations: DCAA, Defense Contract Management Agency (DCMA), and program office technical evaluations.

VIII. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE

RESULTS

As described in Section VI above, market research, in accordance with FAR Part 10, was conducted by synopsizing the proposed acquisition on FBO. The FBO sources sought posting specifically indicated that “Interested parties must show capability to fulfill Government's immediate, short-term need for the effort described above.”

Three companies replied to the 7 May 2010 Sources Sought Synopsis: Input.com, Wideband Systems Inc., and MEI Technologies, Inc. However, none of the respondents provided a SOC nor any other adequate documentation to demonstrate their capabilities to perform this effort. In particular, Input.com (a marketing firm) only requested additional information on the contract extension value and period of performance (the public location of the information was provided to Input.com) and there has been no further contact; Wideband Systems, Inc. and MEI Technologies, Inc. posted only their contact information on the interested vendors list at FBO; however, in addition to not providing a SOC, Wideband Systems, Inc., (a manufacturer of unknown goods) and MEI Technologies, Inc. (service provider, architecture and engineering, and research and development) did not provide any other information relative to their system sustainment and project experience. The information from industry was assessed and revealed there is not an adequate and immediate competitor for this urgent SLRS contract extension.

IX. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL

AND OPEN COMPETITION

N/A

X. LIST OF SOURCES, IF ANY, THAT EXPRESSED INTEREST IN THE

ACQUISITION

Three sources expressed interest as discussed in VIII above.

XI. A STATEMENT OF THE ACTIONS, IF ANY, THE AGENCY MAY TAKE

TO REMOVE OR OVERCOME BARRIERS TO COMPETITION BEFORE

MAKING SUBSEQUENT ACQUISITIONS FOR THE SUPPLIES OR SERVICES

REQUIRED

The Air Force intends to award a follow-on contract using full and open competition.

The SLRS contract extension is a necessary interim step to execute the LISC source selection. In the development of the LISC acquisition, range configuration data is being collected and will be made available in conjunction with site surveys and ER & WR “Open Houses” to maximize competition. Based on LISC market research to date there are at least six fully capable potential offerors for the LISC contract, offering an excellent competitive procurement opportunity for industry as well as for future benefits to the Government.

XII. CONTRACTING OFFICER’S CERTIFICATION

The Contracting Officer’s signature on the Coordination and Approval Document is evidence he has determined this document to be both accurate and complete to the best of his knowledge and belief.

XIII. TECHNICAL/REQUIREMENT PERSONNEL’S CERTIFICATION

As evidenced by their signatures on the Coordination and Approval Document, technical and/or requirements personnel have certified that any supporting data contained herein, which is their responsibility, is both accurate and complete.