Fair Opportunity Exception - ESDC SRU Powe Phase 6_JL 12-4-25 Signed_Redacted.pdf

Rev.:3/2025

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

John F. Kennedy Space Center

Justification for an Exception to Fair Opportunity

Engineering Services During Construction of Safety and Reliability Upgrade, KSC Institutional Power Systems, Phase 6, KSC, FL, PCN 98966.6.

Description of the action being approved: This justification documents the basis for issuing an order under the SERAE contract 80KSC022DA121, Nelson Engineering Company using an exception to the Fair Opportunity process.

Description of the supplies or services required to meet the agency’s needs: This action is a firm-fixed price order, for architect and engineering (A&E) services during the Engineering Services During Construction (ESDC) of “Safety and Reliability Upgrade, KSC Institutional Power Systems, Phase 6, KSC, FL, (S&RU Power Phase 6) Project Control Number (PCN)

98966.6. The total estimated price of the proposed order is and the estimated period of performance is 1,687 calendar days from date of award.

Identification of Exception to Fair Opportunity:

FAR 16.505(b)(2)(i)(A), The agency need for the supplies or services is so urgent that providing a fair opportunity would result in unacceptable delays.

FAR 16.505(b)(2)(i)(B), Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized.

FAR 16.505(b)(2)(i)(C), The order must be issued on a sole-source basis in the interest of economy and efficiency because it is a logical follow-on to an order already issued under the contract, provided that all awardees were given a fair opportunity to be considered for the original order.

FAR 16.505(b)(2)(i)(D), It is necessary to place an order to satisfy a minimum guarantee.

FAR 16.505(b)(2)(i)(E), For orders exceeding the simplified acquisition threshold a statute expressly authorizes or requires that the purchase be made from a specified source.

FAR 16.505(b)(2)(i)(F), In accordance with section 1331 of Public Law 111-240 (15 U.S.C. 644(r)), contracting officers may, at their discretion, set aside orders for any of the small business concerns identified in 19.000(a)(3). When setting aside orders for small business concerns, the specific small business program eligibility requirements identified in part 19 apply.

Supporting Rationale: The requirement for the design of the S&RU Power Phase 4 was issued through a Request for Technical Qualifications Narrative (TQN) to the two A&E firms under the multiple-award On-Call Mechanical contract and NNK17CA17B, Nelson. The two firms submitted a TQN in response to the design requirement for the Design of Safe and Reliability Electrical Upgrades, Phases 4 PCN

98966.4 each TQN was evaluated, and Nelson was selected to provide a fee proposal on May 9, 2019.

Nelson has been involved in the design of this project from the beginning, their expertise and knowledge in this area has increased since that selection. Nelson is the only A&E firm with the specialized expertise and knowledge of the engineering requirements and location specifics of the Electrical Substation USS-833A/B (13.8kV/480V) at the Vehicle Assembly Building Repeater Station (VABR). This previous experience provides necessary information that Nelson has the necessary tools to effectively perform the ESDC engineering services in support of the construction activities associated with this project.

Nelson is the only A&E firm with the expertise to provide engineering services during construction for the S&RU Power Phase 6 project. Additionally, Nelson is the engineering firm of record for the design, which includes the receipt, disposition and technical review of construction contract submittals, Requests for Information, and Deviation/Waivers. This also includes the performance of site visits, engineering analysis, and calculations as needed to clarify or address all issues that may arise with respect to drawings, specification, or other project requirements.

Determination that the anticipated cost to the Government will be fair and reasonable: The Government intends to obtain a fair and reasonable price by verifying the contractor utilized the labor hour prices established by the SERAE Advanced Pricing Rate Agreement (APRA) which were determined to be fair and reasonable and is part of Nelson’s base award, 80KSC022DA121, awarded on December 19th, 2023. The Government will perform a technical evaluation, and negotiate the hours to be awarded as part of the task to obtain a fair and reasonable price in accordance with FAR 15.404-1. This included math verifications, verifications to basis of estimate, historical hours by category awarded for same or similar efforts, and Independent Government Cost Estimate (IGCE) comparison or any other analysis the Government determines to be in its best interest.

Other Facts: If NASA were to procure the ESDC for the S&RU Power Phase 6 project from a contractor other than Nelson, it would likely result in significant additional costs in both time and resources, as Nelson previously conducted the Design Refresh on the S&RU Power Phase 6 project under their parent SERAE contract 80KSC022DA121, task order 80KSC024FA013, in the amount of $155,459.00. Nelson’s specialized knowledge with the original design will result in labor cost savings, as they are the Engineer of Record (EOR). Choosing a new firm would require them to expend effort to review the design and engineer records, to the extent they are able to accept responsibility for the design and recertification. Furthermore, the design is highly specialized, making it challenging for another firm to replicate without a thorough understanding of the context in which it was designed. A new award and effort to review the design as a new EOR would impact the schedule by 4 months or more before the project can proceed.

A statement of the actions, if any, the agency may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for the supplies or services is made: The CO will continue to examine the market in the future for alternative solutions or new sources before executing any subsequent acquisitions for the same requirements.

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

SIGNATURE PAGE

Engineering Services During Construction of Safety and Reliability Upgrade, KSC Institutional Power Systems, Phase 6, KSC, FL, PCN 98966.6.

I certify that the requirements and technical data contained herein, and which form a basis for this justification are accurate and complete.

Rob Schroeder Sr. PM / Technical Representative

I hereby certify that this justification is accurate and complete to the best of my knowledge and belief. Based on the information provided in this justification, and as the approving official, I have determined that the exception at FAR 16.505(b)(2)(i)(C) applies to the order.

Jesus Lugo Jr.

Contracting Officer

Robert Schroeder

Digitally signed by Robert Schroeder Date: 2025.12.03 15:36:44 -05'00'

Jesus Lugo Digitally signed by Jesus Lugo Date: 2025.12.03 15:48:03 -05'00'