LOSC_JA_-_Redacted.pdf

Justification and Approval (J&A) for Other Than Full and Open Competition J NOTE: If a Justification and Approval was approved for the preceding acquisition, a copy of the approved J&A for the predecessor action i I must be included in the staff package for approval of the instant J&A. This applies to J&A staff packages that are submitted for review i I I and approval ot a level above the contracting officer. The predecessor J&A will be used as a reference document by the approving officio/. i l _________________________________________________________________________________ J

Choose the funding level for this J&A Document:

D s_ $700K D > $700K and s_ $13.SM IX] > $13.SM and s_ $93M D > $93M

Contracting Activity: 45th Contracting Squadron

Purchase Request I Local ID Number: FA2521-05-C-0008

Program I Project (and PE, if applicable): Launch Operations and Support Contract

Program Type (PEO or Other Contracting): PEO

Authority (include full title): 1 O U.S.C 2304(d)(1)(B) as Implemented by FAR 6.302-1(a)(2)(iii)(A) and (B)

Estimated Contract Cost (including options):

COORDINATION (AFFARS 5306.304(a))

Date

Date

[Name]

[Office Symbol I Phone Number J

[Name]

[Office Symbol/ Phone Number J

[Name J [Office Symbol I Phone Number J

J&A Type: D Class IX] Individual

Signature

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Date [Title] Signature

[Name]

[Office Symbol I Phone Number]

APPROVAL (AFFARS 5306.304(a))

Date Program Executive Officer Signature

Date Signature

[Name]

[Office Symbol I Phone Number]

Date [Title l Signature

[Name l

[Office Symbol I Phone N.umber J

Date [Title l Signature [Name]

[Office Symbol I Phone Number l

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I. Contracting Activity.

Organizational Activity: 45 LCSS 10351 Samuel Phillips Parkway Bldg. 85125 (CCAFS) Patrick AFB FL 32925

Contracting Agency: 45 CONS 1201 Edward H. White II St Patrick AFB FL 32925

II. Nature and/or description of the action being processed.

Approval is requested to continue contract FA2521-05-C-0008, Launch Operations Support Contract (LOSC), by extending the contract for up to 24 months (1 October 2016 - 30 September 2018). This extension will permit the continuation of mission critical supplies and services for FY17 and if necessary FY18.

The contract type is a Cost Plus Award Fee/Award Term (CPAF/AT) on two Contract Line Item Numbers (CLIN)s. The contract was originally awarded on 22 April 2005 with a $384.2M total contract value and included a two-month phase-in period, a three-month basic period, and 1 O one-year options through 30 September 2015. All contract options through 30 September 2015 have been exercised. Although the contract contained award terms which were successfully earned, this extension will be executed through a base year with the possibility of exercising two 6-month options If needed. An award term for these periods is not appropriate due to the uncertainty of the need for performance during the periods.

The LOSC and the Infrastructure Operations and Maintenance Services (IOMS) will be combined into one acquisition to provide continuity of critical launch operations support under the Cape Launch Operations and Infrastructure Support (CLOIS) contract. The LOSC contract with Space Coast Launch Services (SCLS) was extended six months using the Option to Extend Services, FAR 52.217-8, to allow sufficient time to permit a smooth transition Into a newly awarded acquisition forthe CLOIS contract; however, the Government Accounting Office (GAO) sustained a bidder protest associated with CLOIS contract award, necessitating a reevaluation of the successful proposal and another six month extension of LOSC. The Government reaffirmed the original award and subsequently another protest was filed. On 1 July 2016, the GAO sustained the protest and an additional period of performance will be required for this contract due to the delayed start of CLOIS.

After the protest was sustained on July 1, 2016, the Air Force considered how to proceed with the long-term procurement, and determined to cancel the RFP and resolicit.

The anticipated Corrective Action Pian includes an industry forum wherein relevant information regarding the plan would be provided to all interested parties. Due to expressed interest by industry in the selection of the plan, it is anticipated industry discussion may take several weeks. Therefore, the new request for proposal is anticipated in mid to late November 2016.

Draft milestones estimate a new award in the December 2017 time-frame with a transition period beginning in January 2018.

111. Description of supplies/services required to meet agency needs.

LOSC provides operations, maintenance and engineering support to critical launch, spacecraft, and ordnance facilities and support systems owned by the 45th Space Wing (45 SW). These facilities and systems are vital to the support of Department of Defense (DoD), National Aeronautics and Space Administration (NASA) Launch Services, and the Commercial Space Operations for the Evolved Expendable Launch Vehicle at Cape Canaveral Air Force Station (CCAFS), Florida.

IV. Statutory authority permitting Other than Full and Open Competition, 1 O U.S.C. 2304(d)(1)(8), as Implemented by FAR 6.302-1(a)(2)(iii)(A) and (B), provides that fort he DoD, services may be deemed to be available only from the original source in the case of follow-on contracts for the continued provision of highly

Updated: 15 Mar 16 Page3of8 specialized services when it is likely that award to any other source would result in:

(a) Substantial duplication of cost to the Government that is not expected to be recovered through competition, or

(b) 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).

(1) Only One Responsible Source (FAR 6.302-1): An extension is required to guarantee there is not a break in service for the subject contract. This is based on the systems used and the require expertise In specific methodologies and disciplines that are outlined in the Performance Work Statement (PWS). The work executed under this contract directly supports space launch facilities and systems that are vital to the support of DoD, civil, and commercial space launch processing at CCAFS. A break in service would be crippling to the successful mission capability. The 45 SW mission is dependent on the availability of the critical launch facilities and systems supported by the LOSC. The LOSC provides operations, maintenance and engineering support to critical launch, spacecraft and ordnance systems with a significant emphasis on the use of system engineering principles in the sustainment of these systems.

As discussed In Section II, corrective action in response to the sustained protest could not occur in sufficient time to award a new contract and complete a necessary 90 day transition period before the expiration of the current period of performance on 30 September 2016, leaving the 45 SW without a means to continue performance of a highly specialized service. Lack of a contractual means to acquire performance after 30 September 2016 creates an unacceptable risk to the customer.

(2) The highly specialized services provided by SCLS include assuring that the operations, maintenance and configuration change actions are responsive, well integrated, and thoroughly coordinated with numerous customers and other government agencies.

(3) Award to any other source would result in substantial duplication of cost to the government that is not expected to be recovered through completion and unacceptable delays in fulfilling the 45 SW requirements.

a) Duplication of Costs. Significant duplication of cost would occur because the award of a short term bridge contract would result in two contract transitions (i.e., the incumbent would transition to a bridge contractor that subsequently would again transition to the long-term follow-on contractor).

Although this transition cost covered the consolidated contract (IOMS and LOSC) It is anticipated that many of the same costs would be required to transition to a short term contract for LOSC. A bridge contractor's transition cost would be similar in nature to that of the full transition as a management team for transition would be required, inventory personnel would be necessary, human resources and fabor relations would remain unchanged and all types of other direct costs associated with standing up a new contract location would be incurred under an LOSC transition similar to that proposed for CLOJS.

Transition costs would include CCAFS access badging and CAC processing for security clearances for new management, 100% inventory of parts, materials and facilities turnover, 100% vehicle turn-in, 100% computer inventory and set-up, management familiarization of CCAFS sites and processes, set-up of financial accounting records and tracking, Human Resources activities (interviewing, hiring, benefits, etc.), corporate travel and hotel and ancillary corporate costs.

As the current contract concludes, the Government will be liable for severance costs of employees not transitioning to the new contract. In the case of a bridge contract, the cost of severance pay would be for LOSC employees not being retained by the interim bridge contractor and should that bridge contractor not be the successful awardee under CLOIS a second round of severance pay would likely be incurred.

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In additional to duplicate costs which would be paid to contractors, other costs would be incurred by the Government as a result of multiple transitions. Government resources would be required for processing the multiple badging requirements, establishing new accounts for contractor employees, processing paperwork for access to multiple computer systems, and numerous hours for transfer of Government property.

None of the preceding costs discussed would be recovered through competition. Additionally, the turmoil of multiple transitions would result in a high risk of unacceptable delays in fulfilling space launch requirements and would divert limited Government resources away from the Jong-term reacquisition thereby increasing risk. The approval of up to a 24 month extension will avoid the potential for duplication of cost by ensuring at most only one contract transition after the award of the CLOJS contract. represents only the cost of providing operations, maintenance and engineering support if a full 24 month extension is approved.

b) Unacceptable Delays. Award and full transition of a competitive follow-on contract cannot be completed by the end of the existing contract expiring on 30 September 2016. The 45 SW does not currently have in-house capabilities to support these scheduled launches. If this extension of services is not approved, the mission impacts would include:

1. LAUNCH MISSIONS: Up to would be scrubbed and rescheduled causing an impact to range systems availability and future launches.

2. NAVAL ORDNANCE TEST UNIT(NOTU) SUPPORT: The LOSC support provided to the US Navy and NOTU at CCAFS port facilities and the Eastern Range would come to a halt affecting both Naval operations and NOTU. LOSC provides for transportation and storage of torpedoes, small misslles and ammunition used for naval operations. The handling of this type ordnance requires special certifications that are maintained by SCLS personnel. These unique services can only be obtained through the LOSC ordnance services without a significant increase in cost and delays in the current Naval operational schedule. The Joss of ordnance services provided by the LOSC would impact the Navy's ability to prepare and execute FYl 7 and FY18 naval missions. These services are critical to NOTU to prepare their FllghtTermination Systems and provide for the loading and unloading ofwarshot and exercise torpedoes.

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If the LOSC contract is not extended, and a replacement contract is not available for transition, calibration and maintenance services of critical chemical analysis equipment used by the Air Force Aerospace Fuels Laboratory which provides quality assurance/quality control support to DOD, NASA, contractors and range users will not continue.

Discontinuation of this service will impair DOD, NASA, and Commercial launch operations nationwide and carry severe consequences to numerous other critical programs including SpaceX resupply missions to the International Space Station impacting its crew.

Award of a competitive short-term bridge contract to run in parallel with the reacquisition of a long-term follow-on contract is also not feasible. The execution of simultaneous acquisitions for the same requirement with the same contracting and technical personnel would also increase the risk of delays in the long-term acquisition. This acquisition requires personnel with specialized experience that are not readily available and cannot be made available to support multiple acquisitions of this magnitude and complexity.

(4) Accordingly, SCLS is the only firm capable of providing the supplies and services described in Section Ill above within in the time required to prevent mission Impact and without the USAF experiencing substantial duplication of cost that could not be expected to be recovered through competition and unacceptable delays in fulfilling Its requirements.

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

On 12May16, in accordance with FAR 5.201, a synopsis for up to a 12 month extension of the LOSC contract, FA2521-05- C-0008, was posted on FedBizOpps under solicitation number FA2521-05-C-0008_LOSC to seek other potential sources that could provide the LOSC requirements for a 12 month extension.

On 15 July 16, an additional synopsis was published Informing potential sources of the intent to procure these services for a period of performance up to 24 months.

A response to the synopsis was received from

As outlined in Section II, the duplication of cost and unacceptable delays associated with establishing a bridge contract with a new contractor for the 24-month period drive the fact that only one source can perform this service in the tlmeframe required. While other companies might be able to perform the LOSC requirements, the incumbent contractor, SCLS, currently has the means to meet the time requirement to allow for execution of contract, and is therefore, the only firm available to provide the supplies and services described in Section Ill above without the USAF experiencing substantial

Updated: 15Mar16 Page 6 of 8 duplication of cost and unacceptable delays in fulfilling its mission requirements, while new competitive process is underway.

VII. Determination by the Contracting Officer that the anticipated cost to the Government wlll be fair and reasonable.

This is a request for continuation of the existing LOSC contract. The Contracting Officer will determine fair and reasonable cost/price prior to award of any future modifications in accordance with FAR 15.4, Contract Pricing. Cost/price analysis will be based on historical costs incurred, certified cost and pricing data, the independent Government cost estimate, technical evaluations, and audit support from the Defense Contract Audit Agency, as required.

VIII. Description of the market research conducted and the results, or a statement of the reasons market research was not conducted.

As described in Section VI above, market research, in accordance with FAR Part 10, was conducted by synopsis of the proposed action, advising industry of the pending 24-month LOSC contract extension.

IX. Any other facts supporting the use of Other Than Full and Open Competition.

NIA

X. List of sources, if any, that expressed interest in the acquisition, See Section VI above

The present contractor Is:

Space Coast Launch Services 1613 SAB Road, RM 15 (CCAFS) Patrick AFB, FL 32925

XI. A statement of the 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.

Full and open competition JAW Competition in Contracting Act and 41 USC 3301 (a) will be used in the reacquisition of the Jong-term follow-on CLOIS contract. Expected award date of the CLOIS acquisition is December 2017.

XII. Certification by the Contracting Officer.

As evidenced by my signature above, I have determined this document to be both accurate and complete to the best of my knowledge and belief.

XIII. Certification by the technical/requirements personnel.

As evidenced by my (our) signature(s) above, I (we) certify that any supporting data contained herein, which is my (our) responsibility, is both accurate and complete.

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