Approved_JA_14_Jun_2013_Redacted.pdf

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY

Acquisition Office: Air Force Space Command (AFSPC)

Space and Missile Systems Center (SMC) Launch and Range Systems Directorate

Contracting Organization: Contracts Division (LRK) 483 N. Aviation Blvd.

El Segundo, CA 90245

Authority: 10 U.S.C. 2304 (c)(1) as implemented by FAR 6.302-1(a)(2)

Solicitation/Contract: FA8811-13-R-0004/FA8811-14-C-0003

Contractor: Space Exploration Technologies Corporation (SpaceX) 1 Rocket Road Hawthorne, CA 90250

II. NATURE AND/OR DESCRIPTION OF THE ACTION BEING PROCESSED

This class Justification and Approval (J&A) is for the authority to issue approximately up to four early integration studies to Space Exploration Technologies Corporation (SpaceX) for its Falcon 9 v1.1 launch vehicle on a new contract. The individual studies may be awarded separately on the initial contract and subsequent modifications to the same contract. The contemplated contract type for the contract is anticipated to be Firm Fixed Price (FFP) with a total estimated price of $20M. The estimated contract award date is July 2013. The final study is estimated to be awarded prior to FY17. Each study’s period of performance will be for 12 months and will be staggered as appropriate throughout FY13 through FY17. The award of the studies is contingent on the first successful certification flight and SpaceX providing the corresponding documentation.

III. DESCRIPTION OF SUPPLIES/SERVICES REQUIRED TO MEET THE

AGENCY’S NEEDS

The contract authorized by this J&A will provide for the early mission integration efforts. Early integration efforts are conducted three to four years prior to launch for first-time missions of a specific satellite and/or launch vehicle configuration to identify the space vehicle’s mission unique requirements and assess the launch vehicle’s ability to meet specific space vehicle interfaces.

The total estimated dollar value is $20M for four studies, at approximately $5M each. This estimate is based on engineering judgment and historical costs of similar studies. The delivery date for each study is approximately two years prior to launch. The appropriation type (e.g. 3600 or 3020) will be based on individual missions.

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION

The statutory authority of this action is contracting by Other than Full and Open Competition, 10 USC § 2304(c)(1), as implemented by FAR 6.302-1(a)(2) which states, “When the supplies or services required by the agency are available from only one responsible source, or, for DoD, NASA, and the Coast Guard, from only one or a limited number of responsible sources, and no other type of supplies or services will satisfy agency requirements, full and open competition need not be provided for.”

V. DEMONSTRATION THAT THE CONTRATOR’S UNIQUE QUALIFICATIONS

OR NATURE OF THE ACQUISITION REQUIRES THE USE OF THE AUTHORITY

CITED ABOVE (APPLICABILITY OF AUTHORITY)

In accordance with FAR 6.302-1(a)(2), full and open competition need not be pursued when the supplies or services required for the DoD are available from a limited number of responsible sources, and no other type of supplies or services will satisfy agency requirements. Prior to procuring launches, the EELV program acquires early mission integration contracts for first-time missions of a specific satellite and/or launch vehicle configuration to identify the space vehicle’s mission unique requirements and assess the launch vehicle’s ability to meet space vehicle interfaces. Regarding the early integration studies that will be awarded to SpaceX pursuant to this J&A, the incumbent launch provider, United Launch Services (ULS), has already performed early integration studies on its Atlas V and Delta IV launch vehicles at the Government’s expense. As New Entrant launch vehicles become available, including SpaceX’s Falcon 9 v1.1, it is necessary to award early integration contracts for first-time payloads on their respective launch vehicles. Since each launch vehicle is only provided by a single source, each source then possesses unique capabilities to perform the studies on its respective launch vehicle.

Additionally, each source possesses ownership of proprietary information relating to its launch vehicle; therefore, it is necessary to award early integration studies of a launch vehicle specifically to its manufacturer. LR will award early integration contracts to a potential New Entrant no earlier than after the New Entrant completes its first successful certification flight in accordance with the approved acquisition strategy.

FAR 6.302-1(b)(1)(ii) states that when there are unique supplies or services available from limited sources it may be appropriate not to pursue full and open competition. The early integration studies are unique to each potential new entrant and its own launch vehicle configuration. SpaceX, as the sole owner and manufacturer of the Falcon 9 v1.1, possesses "unique capabilities" for this requirement (studies) because the study is on SpaceX’s own unique launch vehicle: possessing its own specific knowledge and resources of the launch vehicle. With the unique capabilities, it is most efficient and reasonable to obtain the studies from SpaceX rather than pursuing full and open competition.

Additionally FAR 6.302-1(b)(2) provides that, in some cases, “the existence of limited rights in data, patent rights, copyrights, or secret processes; the control of basic raw material; or similar circumstances, make the supplies and services available from only one source.” These early integration studies make in depth analysis into the trajectory / mission design, the LV/SV coupled launch loads environment, and the integrated LV/SV thermal environment which requires knowledge of the Falcon 9v.1.1 and its associated interface with the space vehicle. The studies on the Falcon 9 v.1.1, a commercial launch vehicle requires certain proprietary information on the launch vehicle which is owned and produced solely by SpaceX. Due to the proprietary information needed, the study of the Falcon 9 v1.1 can only be satisfied by SpaceX.

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED PRACTICABLE

A Special Notice, Solicitation #13-50, was posted on FedBizOps on 20 February 2013, which informed potential New Entrants that early mission integration studies are contemplated to be awarded to companies who have met the following criteria:

a. Submitted a Statement of Intent (SOI) to the SMC/LR New Entrant Team initiating the certification process, and

b. Successfully completed one certification flight for the EELV-class launch vehicle configuration described in the SOI.

A synopsis in accordance with FAR 5.201 and FAR 5.203(a) will be issued at a minimum of 15 days prior to solicitation of contracting actions under this J&A.

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE

The Procuring Contracting Officer (PCO) anticipates the cost for this effort will be considered fair and reasonable. Subsequent to technical and price evaluations of contractor proposals by the Government team, the PCO will make a determination as to whether the price is fair and reasonable, and document the basis for that determination. The contractor will bear the burden of submitting detailed, certified cost or pricing data with their initial proposal and for any future contract changes greater than $700,000.00, in accordance with FAR 15.403-4 – Require Cost or Pricing Data (10 U.S.C. § 2306a and 41 U.S.C. § 254b). The PCO will determine price reasonableness based on review and reconciliation of available sources of information, such as input from technical evaluations, DCMA, and DCAA.

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

OPEN COMPETITION

To be eligible for EELV missions, the launch service provider must be a U.S. company in accordance with Public Law 111-314, National and Commercial Space Programs, and the launch vehicle must be manufactured in the United States as required by the U.S. Space Transportation Policy. To substantiate compliance with these legal requirements, the NECG requires new entrants to submit sufficient information, such as state of incorporation; summary of international ownership; and a summary of any foreign vendors, components, or services employed in the manufacture of the vehicle. SpaceX and its Falcon 9 v1.1 have satisfied these requirements.

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

ACQUSITION

Sources interested in early integration studies for EELV missions are discussed in Section VIII.

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

REMOVE OR OVERCOME ANY BARRIERS TO COMPETITION BEFORE MAKING

SUBSEQUENT ACQUISITIONS FOR THE SUPPLIES OR SERVICES REQUIRED

The award of early integration studies is a necessary step for competition of EELV missions.

Additionally, the Air Force is taking other steps to foster competition: creating a new entrant certification process, awarding a new contract for pre-certification launch opportunities, and preparing for a FY15 EELV launch competition.

a. The Air Force, National Reconnaissance Office (NRO), and NASA have adopted a joint New Entrant Certification Strategy, dated 12 October 2011, which provides a methodology for certification of launch vehicles based on risk classifications for individual payloads. This framework provides multiple paths to on-ramp potential New Entrants. In addition, the NECG details certification requirements for DoD NSS missions on EELV-class launch vehicles.

b. The Air Force will use the Orbital Suborbital Program (OSP-3) contract to provide pre-certification launch opportunities. To ensure New Entrants, current launch providers ULS, Boeing and Lockheed were excluded from the OSP-3 competition.

c. The Air Force anticipates a full-and-open competition beginning in FY15. As mentioned in paragraphs III, V, and VIII above, this J&A enables competition by ensuring that all current launch providers who are eligible to compete in FY15 through FY17 have performed the necessary early integration activities.

XII. CONTRACTING OFFICER’S CERTIFICATION

The Contracting Officer's signature on the Justification Review Document is evidence that he has determined this document to be both accurate and complete to the best of his knowledge and belief.

XIII. TECHNICAL/REQUIREMENTS PERSONNEL'S CERTIFICATION

As evidenced by the signatures on the Justification Review Document, the Program Manager certified that any supporting data contained herein is both accurate and complete. The Program Manager for this effort is responsible for verifying the technical requirement for this effort.