FA8802-13-D-0002_LR02_-Fair_Opportunity_Exception_ Redacted .pdf

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

I. CONTRACTING ACTIVITY

Acquisition Office: Air Force Space Command (AFSPC)

Space and Missile Systems Center (SMC) Launch Systems Directorate Contracts Division (LRK) 483 N. Aviation Blvd.

El Segundo, CA 90245

Authority: FAR 16.505 (b)(2)(i)(A)

Solicitation/Contract: FA8802-13-D-0002 LR02

Contractor: Tecolote Research, Inc.

4120 E. Grand Ave, Ste 200 El Segundo, CA 90245

II. NATURE AND DESCRIPTION OF THE ACTION BEING APPROVED

This Justification for an Exception to Fair Opportunity authorizes award of a Task Order (T.O.) against the SMC Acquisition and Financial Support (SAFS) multiple-award indefinite delivery indefinite quantity (IDIQ) contract, FA8802-13-D-0002, to a single source without allowing all contractors under the basic contract the opportunity to compete for this requirement. The T.O. number will be LR02. This T.O. will be a Firm- Fixed Price contract with a Cost Reimbursement CLIN for travel and ODC.

III. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED TO MEET

THE AGENCY’S NEEDS

The goal of this effort is to develop, maintain, and preserve credible program cost estimates, integrate engineering designs with the program and system cost estimates, support budget requirements and justification activities, perform Earned Value (EV) analysis, support acquisition reporting and schedule management analysis. Specifically, tasks will include cost benefit analyses, sufficiency reviews of prime contractor Rough Order of Magnitude (ROM) estimates, cost proposal evaluations, should/will cost studies, support to budget requests and excursions (“what-if” drills), EV analysis, and schedule management analysis. The scope for this effort includes the following:

A. Cost Estimating - Develop, prepare, and deliver fully documented and well supported cost estimating products for non-Major Defense Acquisition Development Programs (non-MDAP) and one Major Defense Acquisition Development Program (MDAP).

B. Commitment/Obligation/Expenditure Reconciliation (C/O/E) - Use various programs to execute C/O/E actions for LR's Program Budget Chief.

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C. Program Control Support - Use various programs to perform budget actions, EV analysis, acquisition reporting, and schedule management.

D. Training - Provide trainees with the tools and knowledge necessary to perform cost estimating activities through on-the-job training.

Estimated value: The estimated value for this effort is $1,000,000.00. Fiscal Year 2015 Procurement funds 3020 will be obligated to support this Task Order. Approximately 6875 labor hours will be acquired to accomplish this effort.

The period of performance (PoP) of this Task Order will be a 30-day base period with two 30-day options.

Also, this anticipated award complies with AFI 63-138 as it falls within SMC/PI’s Requirements Approval Document (RAD) for A&AS contracts at SMC.

IV. IDENTIFICATION OF THE EXCEPTION TO FAIR OPPORTUNITY

AND THE SUPPORTING RATIONALE, INCLUDING A DEMONSTRATION

THAT THE PROPOSED CONTRACTOR’S UNIQUE QUALIFICATIONS OR

THE NATURE OF THE ACQUISITION REQUIRES USE OF THE EXCEPTION

CITED

FAR 16.505(b)(1)(i) requires the Contracting Officer to provide each awardee under a multiple award contract a fair opportunity to be considered for each order exceeding $3,000 unless a statutory exception applies. The specific exception that precludes the fair opportunity process for this acquisition is FAR 16.505(b)(2)(i)(A) whereby “the agency need for the supplies or services is so urgent that providing a fair opportunity would result in unacceptable delays.”

Due to a protest being filed under a competitively awarded SMC SAFS T.O. for these services, a stop work was issued on this competitive T.O. in accordance with 31 USC 3553(d)(3)(A). However, immediate continuation of these services under a separate short-term T.O. is vital to supporting National Security Space (NSS) launch acquisitions.

The multi-agency $65B Evolved Expendable Launch Vehicle (EELV) program has national level visibility and executes in excess of $2B per fiscal year. The program is in the midst of developing Congressional reports, acquisition strategies, conducting source selections, acquisition reporting, and other high-profile activities which cannot be delayed without having far-reaching mission impact. Accomplishment of these acquisition tasks are heavily dependent upon the Advisory & Assistance Services (A&AS) received under the SAFS contract.

The very near-term tasks directly affected by a SAFS suspension of work and the extent those tasks are supported by SAFS A&AS support are listed in the following table. Two of the tasks, the Selected Acquisition Report (SAR) and the RD-180 Replacement Report, are required by law or statute. Other tasks directly relate to strong Congressional interest, expressed in Congressional language and reports, such as EELV acquisition strategies, P a g e | 3 competitions, and New Entrant certification. EELV is currently developing Program Objective Memorandum (POM) inputs and cost estimates for making the program compliant with national policy on orbital debris requirements in direct response to Office of Secretary of Defense (OSD) (Policy) direction.

National Security Space Priority Due Customer % A&AS Selected Acquisition Report (SAR) Apr-15 Congress 100% RD-180 Replacement Report--Cost Analysis Jun-15 Congress 65% Phase 2 Acquisition Strategy Cost Estimates Apr-15 OSD (AT&L) 70% Service Cost Position Jun-15 OSD 70% Operations Research Analysis—Budgets Feb-15 SMC/LR 100% New Entrant Certification Scheduling Jun-15 NSC 100% Staffer Day Prep Feb-15 Congress 75% Defense Acquisition Report (DAES) Mar-15 OSD 100% Monthly Acquisition Report (MAR) Feb-15 SAF 100% FY17 AFSPC POM Cost Estimates Feb-15 AFSPC/CC 90% Phase 1A Source Selection Cost Estimates Feb-15 SMC/PK 70% Orbital Debris Compliance Cost Estimates Feb-15 OSD (P) 50% Phase 1 Earned Value Analysis Feb-15 SMC/LR 90% Phase 1 Integrated Master Schedule Analysis Feb-15 SMC/LR 100%

Several of the tasks listed in the table above are 100 percent contracted-out or highly dependent on the SAFS A&AS contractor because the Government lacks adequate resources with the requisite training and experience to complete them. Acquisition reporting (SAR, DAES, MAR) tasks require access to and training in multiple specific automated tools. These tools are interactive and require significant work-arounds to complete EELV reporting due to the multi-agency nature of the program. The Government is unable to gain the necessary access and training in time to meet statutory and regulatory reporting timelines during a suspension of SMC/LR's SAFS T.O.

EELV's primary cost estimating modeling tool is maintained and operated by the SAFS contractor and while Government cost analysts are learning the tool, they lack the depth and breadth to support NSS launch cost analysis especially to meet the suspenses outlined in the table above. If the EELVprogram lacks the A&AS contractor’s support for these tasks, the negative impacts will be felt throughout the NSS enterprise affecting National Reconnaissance Organization, Navy, multiple Air Force program offices, OSD, Director of National Intelligence, Congress, and the White House.

LR must maintain its capability in Cost Estimating, C/O/E reconciliation and program control support across the entire enterprise. These efforts are crucial in planning, programming, budgeting and executing funding for LR programs in order to provide key decision support to the LR Director, the AF program Executive Officer for Space (AFPEO/SP), the SMC Commander, HQ Air Force Space Command and HQ Air Force.

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The incumbent contractor possesses the knowledge, security-cleared personnel, and expertise necessary to support the mission at this point in time. It was the incumbent contractor providing these services prior to award of the SAFS T.O. Award to another contractor without a pre-planned transition would result in an unacceptable delay in services before a new contractor would be able to get up to speed on the details of the acquisition support service for SMC/LR. For example, offerors for the SAFS T.O. had to propose an adequate approach to accomplishing a 14-day transition period to be fully staffed. Then, after being fully staffed, the new contractor would still have to get up to speed on the priorities of the office, the types of actions that would need to be executed, and the appropriate approving authorities. Any further delay caused by an award to another contractor would create substantial risk to the NSS enterprise and the program's mission, cost and schedule.

V. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND

REASONABLE

The rates for the original Task Order FA8802-13-D-0002 LR01 were determined to be fair and reasonable and were evaluated as part of the original Task Order award. There is no indication that the labor market for the labor categories and rates utilized on the Task Order have changed significantly from the time of the initial award on 22 January 2015.

Also, Tecolote has agreed to caps on its annual rates in the SAFS IDIQ contract, which were based on competition and previously determined to be fair and reasonable. Any negotiations for this award will not exceed the IDIQ rates. The basis for award will be made IAW FAR 15.404-1 which indicates that the proposal analysis is to ensure that the final agreed-to price is fair and reasonable. The contract will be awarded at a fair and reasonable price based on adequate price competition or certified cost or pricing data, if required.

VI. ANY OTHER FACTS SUPPORTING THE JUSTIFICATION

N/A

VII. STATEMENT OF THE ACTIONS, IF ANY, THE AGENCY MAY TAKE

TO REMOVE OR OVERCOME ANY BARRIERS THAT LED TO THE

EXCEPTION TO FAIR OPPORTUNITY BEFORE ANY SUBSEQUENT

ACQUISITION FOR THE SUPPLIES OR SERVICES IS MADE

SMC/LR recently completed a source selection under the SAFS IDIQ contract with multiple contract holders which had the opportunity for this effort; however, the award was protested within five days after the mandatory debriefing, and the contracting officer was required to stay performance in accordance with 31 USC 3553(d)(3)(A). This short-term bridge contract is necessary to minimize the impact of the break in service until the protest is resolved. Also, the Air Force is structuring this award to only acquire the minimum amount of services necessary with short 30-days periods of performance to ensure compliance with the Competition in Contracting Act.

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VIII. CONTRACTING OFFICER’S CERTIFICATION

The contracting officer’s signature on the Coordination and Approval Document evidences that he has determined this document to be both accurate and complete to the best of his knowledge and belief.

IX. TECHNICAL/REQUIREMENTS PERSONNEL’S CERTIFICATION

As evidenced by their signatures on the Coordination and Approval Document, the requirements personnel have certified that any supporting data contained herein which is their responsibility is both accurate and complete.

X. WRITTEN DETERMINATION BY THE APPROVING OFFICIAL THAT

ONE OF THE CIRCUMSTANCES IN (b)(2)(i)(A) THROUGH (F) OF THIS

SECTION APPLIES TO THE ORDER

This justification for an exception to fair opportunity document serves as the written determination documenting the circumstances that apply under FAR 16.505(b)(2)(i)(A).

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