1._JOFOC_(redacted).pdf

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JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

1. This justification for other than full and open competition is prepared by the

National Aeronautics and Space Administration (NASA), John F. Kennedy Space

Center (KSC).

2. The nature and/or description of the action being approved.

This justification provides the rationale for contracting by other than full and open competition with Mindrum Precision, Inc. (Mindrum), for the acquisition of flight certified microvalves, non-flight certified microvalves and associated component hardware.

3. A description of the supplies or services required to meet the agency’s needs.

NASA KSC is procuring additional prototype and flight hardware for the Water Analysis and Volatile Extraction (WAVE) Fluid Subsystem for the Science Mission Directorate project. NASA KSC has tested fifteen Mindrum precision microvalves in its Engineering

Test Unit (ETU) in preparation for development of WAVE Flight units. This requirement is for flight-certified microvalves; non-flight microvalves (for qualification unit); internal pressure seals (C-Seals); external pressure seals (C-Seals); gland assemblies (varying sizes); gland plugging; platinum seals and proof pressure testing of all gland assemblies. The upper and lower C-Seals and platinum seals are required to properly seal the microvalves and the gland assemblies for consistent and repeatable flight-forward operation. The gland assemblies interface directly to the microvalve and

WAVE manifold. The gland assembly design owned by Goddard Space Flight Center

(GSFC) is directly related to the commercially licensed microvalve (for whom Mindrum is the sole Licensor), and therefore GSFC has only released the design to Mindrum.

Mindrum has been selected to manufacture the gland assemblies by GSFC due to the shared interface between the microvalve and the gland assembly. The gland assemblies require precise manufacturing processes and tooling. Uniformity is essential because the system has previously been designed, analyzed, and tested with this valve. The estimated value of this action is

4. An identification of the statutory authority permitting other than full and open competition.

The statutory authority permitting other than full and open competition is 41 U.S.C. 1901 as implemented by Federal Acquisition Regulation (FAR) Subpart 13.5 – Simplified

Procedures for Certain Commercial Items, which permits contracting for commercial items on a sole source basis (including brand-name) when the need to do so is justified in writing.

5. A demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited.

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Mindrum is the only responsible source and no other supplies or services will satisfy agency requirements. Pursuant to 41 U.S.C. 1901 as implemented by FAR Subpart 13.5, this requirement is deemed to be available only from Mindrum. Due to the highly specialized nature of the equipment, it is likely that award to any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition. This requirement is a follow-on to NNK12MB93C and

80NSSC17P0928.

Since the 1980s, Aker Industries in Oakland, CA was the only supplier for microvalves for the space program for planetary mass spectrometer missions to include Galileo, Cassini/Huygens, Phoenix Mars Lander, Mars Science Laboratory/Sample Analysis at

Mars and CONTOUR. Aker had several patents on the valves and was the only manufacturer capable of meeting the critical specifications. Aker was a small company which had difficulty meeting delivery schedules. In the 1990s, Goddard Space Flight

Center (GSFC) worked with Aker to obtain more robust valves with a decrease in overall mass. In 2005, GSFC began developing in-house alternatives to Aker’s valves for the

Mars Science Laboratory mission. GSFC contracted with Aker to provide valves while simultaneously developing NASA valves. Aker continued with late deliveries and, in

2008, GSFC was able to commit NASA valves to the program. NASA filed patent #

7,762,523 for the valves once they were qualified for spaceflight in 2009. Once the microvalve was qualified for spaceflight, work began to transfer this technology to a commercial company through the Innovative Partnership Program. In 2010, a Non

Reimbursable Space Act Agreement was finalized between NASA and Mindrum

Precision, Inc. for transfer of the microvalves. Also in 2010, the owner of Aker, and sole person with intellectual knowledge of Aker valves, passed away. Aker was closed and the intellectual knowledge for those valves was lost. NASA worked directly with

Mindrum for two years upon award of the Space Act Agreement to develop qualifying flight units. NASA has not released the intellectual property to any other business and has not entered into a license agreement with any other company for the microvalves.

6. A description of the efforts made to ensure that offers are solicited from as many potential sources as is practicable, including whether a notice was or will be publicized as required by FAR subpart 5.2 and, if not, which exception under FAR

5.202 applies.

NASA will publicize the Combined Solicitation/Synopsis on the Governmentwide Point of Entry, https://www.fbo.gov in accordance with FAR Subpart 5.2. The part descriptions will be listed in the solicitation to provide any potential source the opportunity to respond. Any responses received as a result of the Combined

Solicitation/Synopsis will be appropriately dispositioned and documented in an addendum to this document.

7. A determination by the contracting officer that the anticipated cost to the

Government will be fair and reasonable.

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It is anticipated that the Contracting Officer will be able to make a fair and reasonable price determination based upon one or more of the criteria set forth in FAR 15.404-

1(b)(2). The Contracting Officer anticipates making a comparison to historical prices paid for the same or similar items (15.404-1(b)(2)(ii)) based upon prior NASA purchases.

In addition, the Contracting Officer anticipates utilizing a comparison with competitive price lists (15.404-1(b)(2)iv)).

8. A description of the market research conducted and the results or a statement of the reason market research was not conducted.

Current market research was not conducted as this is a sole source acquisition of highly specialized equipment wherein NASA has entered into a licensing agreement for the purpose of purchasing microvalves developed by the NASA design. GSFC has not provided any other company rights to use the patent to create these parts and the technical representative has opined that no other companies are currently able to provide interchangeable parts. A review of past market research was completed. Prior market research stated that numerous commercial valve manufacturers were contacted by the technical team, however all of the companies had no interest in supplying the small quantities of the orders between the lengthy mission times. In addition, previous experience with obtaining microvalves for use on spaceflight mass spectrometers over the past 25 years has demonstrated that unique experience and expertise in manufacturing such miniaturized, complex devices is required to properly design, develop, test, qualify and deliver these highly specialized components within the tight schedule constraints required on typical flight missions. As demonstrated while going through this process with Mindrum Precision in their first valve program, this experience and expertise requires a minimum of 2 years of effort to develop and this cannot be easily captured by a new vendor that lacks experience in manufacturing similar components having the same specifications and requirements. The amount of time required to reach such a high level of knowledge and expertise is prohibitive and the learning curve to attain such a level presents an unnecessary technical risk to the government. Selecting another source at this time would result in unacceptable risks and schedule delays negating any advantage of utilizing the competitive procurement process.

9. Any other facts supporting the use of other than full and open competition.

The licensing agreement is still in effect with Mindrum. Based upon the time it took to obtain the licensing agreement (1 year), and the time it took NASA to work with

Mindrum to develop the processes, procedures and production line to manufacture these microvalves (2 years), it would not be reasonably foreseeable that another company could provide these parts for at least 2 to 3 years.

10. A listing of the sources, if any, that expressed, in writing, an interest in the acquisition.

No other company expressed interest, in writing, in this acquisition. If a company responds to the Combined Solicitation/Synopsis, GSFC and the technical representative

80KSC019P0015 Page 4 will be notified and the response will be appropriately assessed. No other company responded to prior NASA postings in the Federal Register for previous procurements of these microvalves.

11. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required.

NASA has the right to allow another vendor to manufacture the valves solely for its own use as the Government is the patent owner for the microvalves. If another mission requiring microvalves is approved in the future, NASA will assess whether there is any demand by other qualified companies to provide these microvalves taking into account the projected quantities for the microvalves in the upcoming years. If it is determined to be reasonable, NASA may consider transferring this technology to other companies.