Advanced_JOFOC_to_Increase_the_IDIQ_Ceiling_Value_on_the_METTS_Contract.pdf

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

GEORGE C. MARSHALL SPACE FLIGHT CENTER

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION (JOFOC)

PURSUANT TO TITLE 10 U.S.C. 2304 (C) (1)

1. This document is a Justification for Other Than Full and Open Competition (JOFOC) prepared by the NASA Marshall Space Flight Center (MSFC) in accordance with Federal Acquisition Regulation (FAR) Part 6.3, Other Than Full and Open Competition, and NASA FAR Supplement (NFS) Part 1806.3, Other Than Full and Open Competition.

2. Nature and/or description of the action being approved:

This justification provides the rationale for contracting by other than full and open competition for a ceiling increase to the Indefinite Delivery Indefinite Quantity (IDIQ) portion of the Marshall Engineering Technicians and Trades Support Services (METTS) contract, NNM15AA19C, for engineering technicians and trade skills services from Aerie Aerospace.

METTS is a cost-plus-award-fee (CPAF) contract that was competitively awarded to Aerie Aerospace on October 1, 2015 with a 1-year base and four 1-year options. Option period 2 was exercised via modification 38 on September 1, 2017 and ends on September 30, 2018. The ultimate completion date of the contract (including a 6-month option to extend services) is March 31, 2021.

The METTS contract consists of both mission services and an IDIQ portion. The IDIQ tasks are authorized through the issuance of individual task orders. The IDIQ ceiling value is currently $121,551,891 for the entirety of the contract’s period of performance (to include all options). A single IDIQ value allows contract flexibility to adjust to fluctuations in yearly operations as needed.

There is only approximately $17 million left in the IDIQ ceiling to cover the remainder of the contract (two 1-year options and a 6-month option to extend). Approval of this action to increase the contract IDIQ ceiling value will allow for the continuation and continuity of services through contract completion.

3. Description of the supplies or services required to meet the agency’s need, including estimated value:

The METTS contract provides direct support to the MSFC Engineering Directorate (ED), the Facilities Management Office (FMO), and other MSFC programs and projects requiring engineering technician and trade support services. These services include performing testing, ground and space based research, test operations, data analysis, machine and electrical shop operations, and performing other technical activities and management oversight for aerospace environments core capability. The IDIQ portion specifically provides for procuring additional work force to support multiple programs and projects as workload demands and encompasses the overtime, material, travel, and training values.

NASA/MSFC has the management, design, and test responsibility for the Space Launch System (SLS) and receives considerable engineering technician and trades support from Aerie Aerospace under the METTS contract. There are currently several major test projects that are in the build-up, test, or disassembly phases. In addition to these, there are other major test projects that will be executed in the near future and performed over several years in support of the SLS Program. Examples include: SLS Liquid Hydrogen (LH2) Tank Test, SLS Liquid Oxygen (LOX) Tank Test, SLS Exploration Upper Stage (EUS), SLS Stages Structural Test Article (STA), and SLS Intertank Test. There are several other test projects in various phases of support that are being worked in parallel of SLS; some of these test projects include: Vulcan Upper Stage, Artic Slope, and Kennedy Space Center Composite Burst Tank.

The METTS contract is also used to provide the engineering and technical services for Propellant and Pressurant (P&P) Services to sustain all MSFC operations and testing. This support includes the mandate by Agency Headquarters for requirements to mitigate risk with use of existing layered pressure vessel (LPV) hardware or make preparations for decommission or repair by replace methods to the extent possible.

Several activities supporting SLS and other Projects are in the beginning stages of planning, layout, and fabrication in the mechanical fabrication shop. These include the Payload Adaptor Fitting (PAF) and Next Generation of the Environmental Control Life Support System (ECLSS). In addition to the Next Generation ECLSS, there has been an increase of critical Environmental Control and Life of Support System (ECLSS) fabrication, refurbishment, and assembly hardware in support of the International Space Station (ISS).

Material value and purchases were removed from the mission portion of the contract and added to the IDIQ portion due to fluctuations in materials needs after the base year award. Task orders were issued to include Materials, Travel, and Training for Option Years 1 and 2 valued at approximately $31.5 million and $23.5 million, respectively. The decline in Material purchases between option years 1 and 2 was due to fewer high dollar items needed from initial production and is expected to remain more consistent throughout the remainder of the contract. The Government estimates approximately $8.5 million per 6 months for the continuation of Material, Travel, and Training throughout contract completion. Therefore, an estimate of $17 million for this task order is used for Option Year 3; due to uncertainty in out years, a 3% escalation rate is applied for Option Year 4 ($17.5 million); and half the value of Option Year 4 is used as an estimate for the 6-Month Option to Extend Services ($9 million) for approximately $44 million through contract completion.

Overtime has been significantly reduced from Option Year 1 to Option Year 2 (an approximate $1 million decrease), and is expected to remain consistent at this level. Therefore, an estimate of $500k for this task order is used for Option Year 3; due to uncertainty in out years, a 3% escalation rate is applied for Option Year 4 ($520k); and half the value of Option Year 4 is used as an estimate for the 6-Month Option to Extend ($260k) for approximately $1.3 million through contract completion.

Labor provided under the IDIQ portion increased from approximately $16 million to $17.75 million between Option Year 1 and Option Year 2. At this time, labor is expected to remain consistent at this level through contract completion. Therefore, an estimate of $18 million for this task order is used for Option Year 3; due to uncertainty in out years, a 3% escalation rate is applied for Option Year 4 ($18.6 million); and half the value of Option Year 4 is used as an estimate for the 6-Month Option to Extend ($9.3 million) for approximately $46 million through contract completion.

The requested IDIQ Ceiling Increase of $75M was calculated by adding the estimated values provided within the above three paragraphs ($44M + $1.3M + $46M = $91.3 M) rounded up to $92 million to allow for any necessary fluctuations less the current remaining IDIQ value of $17 million which results in a difference of $75 million.

This contract is a follow-on to the previous METTS contract. During the protracted Source Evaluation Board (SEB), Government requirements changed and expanded, making an IDIQ ceiling value difficult to estimate. In addition, the large impact from the SLS program was not clearly understood. While the work added has been within the scope of the contract, a large portion of it was unplanned at the time of award. Therefore, the IDIQ ceiling implemented was vastly underestimated and not sufficient to cover all of the operations required.

This action will allow NASA/MSFC to continue receiving highly-specialized engineering technician and trades services to support NASA’s missions without disruption and at the appropriate levels through completion of the METTS contract. Based on historical data and technical expertise, the estimated contract value increase necessary to support the IDIQ services and support through contract completion is $75 million.

4. Statutory authority permitting other than full and open competition:

This recommendation for approval is made pursuant to Federal Acquisition Regulation (FAR) 6.302-1, which implements the authority for U.S.C. 2304(c)(1), for the acquisition of supplies and services from only one responsible source and no other type of supplies or services will satisfy agency requirements. In accordance with FAR 6.302-1(a)(2)(iii), services may be deemed to be available only from the original source for the continued provision of highly specialized services when it is likely that award to any other source would result in unacceptable delays in fulfilling the agency’s requirements. FAR 6.302-1(b)(1)(ii) provides that use of this authority may be appropriate in a situation when unique services are available from only one or a limited number of sources.

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

As the current METTS contractor, Aerie Aerospace is uniquely positioned to continue providing the required engineering and technical services until completion of the current contract. Since award of the existing contract in October 2015, Aerie Aerospace has been supporting MSFC’s requirements with an average of approximately 350 work-year equivalents (WYEs).

Aerie Aerospace has developed a unique knowledge and understanding of requirements, operations, fabrication, testing, and processes across the diverse technical discipline elements of MSFC’s ED within their management staff. Use of Aerie Aerospace’s existing and proven capabilities will permit the timely execution of significant tasks that are necessary for achieving SLS milestones.

It is within the public interest to ensure that sufficient skilled resources are available to support critical SLS milestones. Approval of this action will ensure continuity in contractor support of the engineering technician and trades workforce at MSFC.

6. Description of the efforts made to ensure that offers are solicited from as many potential sources as practicable:

Pursuant to FAR 5.201, this proposed contract action will be synopsized on the Federal Business Opportunities (FBO) website. Any responses received as a result of the publishing on FBO 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:

The anticipated IDIQ Ceiling value increase is determined to be fair and reasonable to the Government based on the calculations provided in this document and their corresponding justifications. In addition, fair and reasonable cost to the Government is determined at the time a task order is issued. When pricing task order requests from the Government, the contractor is required to price resources in accordance with the contractor’s actual average rates at the time of the task order proposal or rates negotiated at contract award (whichever are lower). Each task order proposal is then evaluated by the Government and negotiated with the contractor prior to issuance of the individual task orders. A determination by the Contracting Officer that the anticipated cost of that individual task is fair and reasonable is required in order for the Government to award a task order, which directly affects the remaining available IDIQ value on the contract.

Upon approval of this justification, a modification will be issued to increase the METTS contract IDIQ Ceiling from $121,551,891 by $75,000,000 to $196,551,891.

8. Description of the market survey conducted, and the results, or a statement of the reasons a market survey was not conducted:

Market research among potential offerors was conducted during the SEB. Specifically, the market research included personal knowledge of industry and history of offerors for previous acquisitions and one-on-one meetings with sources who expressed interest in the acquisition. No further market research has been conducted as Aerie Aerospace won the competitively awarded contract and has provided the required support since 2016 in a satisfactory manner. Additionally, this action is to allow for continued support throughout the remaining life of the contract. Award to any other contractor would result in unacceptable delays and a break in continuity of services.

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

There are no other facts supporting the use of other than full and open competition than previously stated.

10. Sources, if any, that expressed an interest in writing in the acquisition:

There have been no written expressions of interest in this contract action to date. However, if any are received as a result of the FBO synopsis, they will be appropriately dispositioned and documented by addendum to this document.

11. The actions, if any, the Agency may take to remove or overcome barriers to competition before any subsequent acquisition for the supplies or services required:

There are no other actions the Agency needs to take to remove or overcome barriers to competition.