FA8810-22-P-0001 Redacted JA.pdf

Justification and Approval (J&A) for Other Than Full and Open Competition

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I. Agency and Contracting Activity.

United States Space Force (USSF); Space Systems Command Production Corps (SSC/PCK)

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

This Justification covers the acquisition of observatory services at the Mt. Lemmon Observatory Facility (MLOF). SSC/PCK is taking contractual action to secure the use of the Mt. Lemmon Observatory through a Firm Fixed Price Contract. This is a follow-on to contract FA8810-17-P-0001. See section III for more information on the services to be acquired and their associated contract type.

III. Description of supplies/services required to meet agency needs (including the estimated value).

The Contractor shall furnish all personnel, equipment, labor, tools, materials, supervision, transportation and other items and services necessary to provide Observatory services for the Space Production Corps, Los Angeles Air Force Base, El Segundo, California. The Government anticipates that Contractor will supply approximately 1,152 staff hours each year to support the Government.

The Contractor shall provide services necessary to furnish a working 1.5 meter, Infrared (IR) Telescope at the Mt. Lemmon Observatory Facility (MLOF) in Tucson, Arizona. All other items and services (e.g. IR spectrograph and observers for recording data) will be provided by the Government/Aerospace team.

Space Production Corps proposes to use the on-site facilities (including dormitory, kitchen, machine shop, and laboratory as needed) and 1.5 meter IR telescope with chopping secondary at the Mt.

Lemmon Observatory Facility (MLOF), near Tucson, Arizona, owned and maintained by the University of Minnesota (UMN). UMN shall allow the Government/Aerospace team or Government/ Aerospace authorized users designated and supported by Government/Aerospace team to attach their IR sensors, included but not limited to, the Broadband Array Spectrograph System (BASS), Mid-wave IR Imaging Spectrograph (MIRIS), and the Circular Variable Filter Wheel (CVF) spectrometer, to the telescope and to operate the system periodically to collect data.

The Contractor shall make half of the total observing time available to the Government/Aerospace team or its designated users on a month-by-month basis. This means that half of the dark (waning quarter to waxing quarter) and half of the light (waxing quarter to waning quarter) time will be available for Government/Aerospace team users as the Government/Aerospace team programs require. The observing season extends from about September 1st to about June 15th year round, each year. The summer months (mid June to late August) are the monsoon season, with thunder and lightning, so the facility is nominally closed during that time unless a very time- critical and important measurement really needs to be made. This results in about 100 - 144 nights/year available, depending on the weather.

The Contractor shall maintain and make available to the Government/Aerospace designated users the

1.5 meter infrared telescope at MLOF. The Contractor shall ensure that the telescope is maintained in good working condition for Aerospace observers. In good working condition shall mean that the chopping secondary (telescopic mirror) is functioning properly, that all telescope facility mechanical and electrical components are working properly, and that the telescope control software and manuals

April 2021 Security Marking (select from the drop-down list) Page 3 of 9 are properly maintained and updated. In addition, the telescope shall point relatively to 1 arcminute, and track to 10 arc/sec over a 20 minute interval.

The Contractor shall provide the Government/Aerospace team or its designated users access to the telescope for 100 - 144 nights (depending on the length of the monsoon season) during a twelve month period.

The Contractor shall provide Observatory site support which shall include but is not limited to clearing of roads during inclement weather, building maintenance, and other support necessary to ensure access to a functioning and clean facility. The Contractor shall provide appropriate cold weather personnel gear. Delivery of cryogens and shipment of Aerospace equipment between MLOF and Steward Observatory's operations base will be arranged and paid for by the Aerospace Corporation and its observers. The Contractor shall provide timely technical support within 24 hours (via telephone), within 3 calendar days if technical support is subcontracted to the University of Arizona, and within 1 week in the event a person has to fly from Minnesota to Arizona in the event of equipment breakdown.

Government/Aerospace team and designated users will be allowed to use the observatory facilities, including the telescope, warm room, observatory vehicles, computers, cold weather gear, library, machine shop, and laboratory. Living and recreational facilities, plus any other considerations normally given to astronomers using the site will be given to Government/Aerospace team and designated users at no additional cost. No night assistants are required to be provided by the Contractor for telescope operations.

The period of performance of this effort will include one base year period with two one-year options for a total of three years. The Government originally estimated the firm-fixed price for the one-year base period as $184,016, the firm-fixed price for the first one-year option period as $187,098, the firm-fixed price for the second one-year option period as $190,240, and the total firm-fixed price for the base period and two option periods as $561,354.

The settlement firm-fixed price to be awarded is $266,671 for the one-year base period, $271,044 for the first one-year option period, and $275,811 for the second one-year option period, totaling $813,526 for the base period and two options.

**See Section VII of this amended J&A for a detailed comparison of and rationale for the difference between the Government's original estimate and the settlement price.

IV. Statutory authority permitting other than full and open competition.

10 U.S.C. 2304(c)(3), as implemented by FAR 6.302-3(a)(2)(ii), required by FAR 6.303-2(b)(4).

V. Demonstration that the contractor's unique qualifications or the nature of the acquisition requires use of the authority cited above (applicability of authority).

A. Background

1. The Space Systems Command Production Corps (SSC/PC) must provide spectral energy distributions as

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Government-furnished information to the prime contractor for the Space Based Infrared System (SBIRS). This data is used for on-orbit irradiance calibration to meet a classified radiometric accuracy requirement of the SBIRS program. It is also used to maintain positive sensor development, conduct data analysis, create and maintain a star catalog, and develop procedures. The star catalogue supports sensor calibration throughout the on-orbit lifetime of the SBIRS systems; this calibration ensures the SBIRS Highly Elliptical Orbit (HEO) and Geosynchronous Earth Orbit (GEO) sensors remain accurate throughout the life of the constellation. Accuracy is critical to successful execution of the SBIRS missile warning, missile defense, technical intelligence, and battlespace awareness missions.

2. Historically, the SBIRS program has utilized two complementary sites for obtaining ground truth data: the Advanced Electro-Optical System (AEOS) Telescope at the Air Force Research Laboratory in Maui, Hawaii and the MLOF. These complementary sites are needed in order to obtain the information required for on-orbit calibrations due to the functional limitations of each site. AEOS is the primary location where periodic data measurements are gathered for the HEO sensors, as the stars used to calibrate HEO on-orbit sensors are not visible from the MLOF's latitudinal position. AEOS can also be used to perform infrared data measurements required to calibrate GEO sensors. However, AEOS alone is not able to reliably meet the ongoing information requirements due to the high risk of catastrophic failure and limits on availability and accessibility (particularly on short notice for changing launch or early on-orbit testing schedules and anomaly resolution) due to both customer prioritization and weather conditions.

3. In order to collect all of the required information, SSC/PC needs access to another observing facility with an appropriate area of observable sky. The facility must have an infrared telescope with a secondary mirror with chopping and nodding capability. In order to minimize the effect of natural atmospheric conditions that absorb infrared radiation and limit detection, the telescope must be at a higher elevation. The telescope must be in the United States in order to comply with restrictions of the International Traffic in Arms Regulations. The geographic location of the MLOF in the southern portion of the United States is critical due to the orbital path of the SBIRS constellation. Additionally, the ideal lens measurement is 1.5M in order to facilitate the optical setup specific to the instruments the Government has designed to measure the data. The facility needs to be available for approximately 144 nights of total observation time, which includes access to the telescope for approximately two weeks at a time, four times per year for calibrations, and additional access on short notice as required to support launch schedules, early on-orbit testing calibrations, and on-orbit anomaly resolution, as often as once per month.

B. Unique Qualifications

The Regents of the University of Minnesota wholly own and operate the Mt. Lemmon Observatory Facility (MLOF) in Tucson, AZ. The MLOF contains a 1.5-meter, infrared telescope with a secondary mirror with chopping and nodding capability. Its geographic location provides an appropriate area of observable sky and an acceptable elevation (9,157 feet). Typical weather conditions and almost no competition for access will allow the program office to obtain the full 144 nights of total observation time. Further, The University has been successfully providing services to make the telescope available to the Government for the last 19 years. The shorter distance from the Los Angles Air Force Base to MLOF and accessibility of the telescope allow for accurate monitoring of stars. Also, the site can be scheduled on a routine basis over a 10-month period each year. MLOF is accessible via paved roads and is within a day's drive from Los Angeles Air Force Base (where the IR sensors used for the program are created, tested, maintained, and calibrated). As a result, the sensors may be taken to the MLOF safely and efficiently by van or truck, cooled, tested, calibrated, and ready to be used for observations. The site has its own laboratory, dark room, tools, and modest machine shop capability for on-site repairs. The MLOF can support government and contractor teams of 3-5 personnel needed for research in the same building as the telescope control room, with additional living quarters available in close proximity, if needed. Lodging in close proximity not only is included in the negotiated price, but immediate access to the telescope cuts on travel time and expense. Finally, the SBIRS program has unique instruments that have been previously mounted on the

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MLOF telescope and its personnel have familiarity with the MLOF site.

C. Maintain an Essential Research Capability

1. Market research indicates there are nine observatory sites within the United States with an infrared telescope with the required secondary mirror; however, only the MLOF has the ideal 1.5-meter lens. While telescopes of other sizes could meet the technical capability requirements, the modifications required for telescopes with lens measurements other than 1.5-meters add a significant amount of non-recurring work to create mounting and interface equipment and hardware to make the Government's existing equipment compatible. Personnel who will need to perform the observations have instruments that have been previously mounted on the UMN telescope before and have familiarity with the MLOF site. If a different site were to be used, new interfaces and training costs would certainly be incurred. This would include building a new instrument to perform measurements and implementing certain modifications at the observatory to allow for use of the Government's instruments and support of the Government's operators. Costs for such modifications could be as high as $1-2M as evidenced by the approximately $1.4M cost to modify the Advanced Electro-Optical System facility at the Air Force Research Laboratory in Maui, Hawaii. Such modifications would negatively impact the program's ability to support timely and cost-effective initial calibration and checkouts of the GEO 5/6 satellites during the projected period of performance 18 Oct 2021 - 17 Oct 2024. In addition, access to the other sites is either severely limited or completely unavailable;

only the MLOF can meet the Government's availability requirements.

2. Further, SSC/PC is currently the only external customer utilizing the facility. The University plans to close the MLOF due to funding constraints if SSC/PC does not continue to utilize the facility.

3. Without access to this facility, the Government will have to compete for access at other facilities and will most likely not be able to obtain the timely and often short-notice access that it needs to perform calibrations, support launches, conduct early on-orbit testing, and provide on-orbit anomaly resolution. If the Government cannot obtain timely access, there is a potential for increased sensor downtime for radiometric calibration and a potential for operational restrictions. Such restrictions could impact National Missile Defense, Theater Missile Defense, and Integrated Tactical Warning/Attack Assessment and Technical Intelligence discrimination requirements. Therefore, it is critical to maintain this essential research capability. If delays in service occur, the Space Production Corps will not be able to fully support GEO-5/6 Early on Orbit Testing and Checkout of the payload at a minimum. The Government's next visit to the facility was originally and tentatively scheduled for November 2021 to support the GEO-5 satellite for its initial calibration and checkouts. Options for this contract are necessary to ensure that there are no gaps in the highly specialized service that the MLOF provides.

D. Provided by an Educational Institution

A search of the System for Award Management (SAM.gov) verified that the Regents of the University of Minnesota is classified as an Educational Institution.

E. Conclusion

It is necessary to award a sole source contract to the Regents of the University of Minnesota to maintain this essential research capability provided by an educational institution.

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

FAR 5.202 applies.

Market research for this effort included internet searches, examination of acquisition history, and evaluation of the

April 2021 Security Marking (select from the drop-down list) Page 6 of 9 marketplace for the same or similar services by subject matter experts. The results of the market research indicate that there are nine observatory sites within the United States with the required chopping secondary telescope, of which only MLOF has a 1.5-meter lens. Further, no other site can meet the short-notice access and duration requirements needed to support the SBIRS program. The results of the market research conducted are summarized in the table below:

Observatory/Site Lens Location Elev. (ft) Chopping Secondary Available

Gemini-North 8.2m Hilo, HI 13,770 Y limited

KPNO 2.1m Kitt Peak, AZ 6,880 Y limited

WIYN 3.5m Kitt Peak, AZ 6,880 Y limited

UKIRT 3.8m Mauna Kea, HI 13,600 Y limited

IRTF 3m Mauna Kea, HI 13,600 Y limited

LBT 8.4m Mt. Graham, AZ 10,700 Adaptive optics No access

MMT 6.5m Mt. Hopkins, AZ 8,583 Y No access

Palomar Hale 5m Palomar, CA 5,617 Unk. No access

AEOS/AFRL 3.7m Haleakala, HI 10,013 Y limited

Apache Point 3.5m Sunspot, NM 9,147 N limited

UCO/Lick Shane 3m San Jose, CA 4,209 Unk. No access

NPOI 3x1.8m Anderson Mesa, AZ 7,096 Unk No access

Mt. Wilson 3x65in Mt. Wilson, CA 5,715 Y No access

MLOF 1.5m Mt. Lemmon, AZ 9,157 Y Unlimited

WIRO 2.3m Jelm Mountain, WY 9,656 Y No access

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

University of Minnesota (UMN), has been awarded previous contracts of similar value that were deemed fair and reasonable. Contract funding on previous year(s) awards starting from FY 2004 to FY 2008 was $110,000 per year, FY 2010 to FY 2013 was $120,000 per year, FY 2014 to FY 2016 was $140,000, and last contract supported the Government's requirement from FY17-FY21. The value of FY17 services was $157,508 and $165,428 in FY21. The increase was due to inflation, loss of key staff and new COVID-19 procedures. The original Government estimate for service projected to begin Oct 2021 was approximately $187,118 per year for 3 years.

The original J&A ,including and based on the Government's original price estimate, was approved on 16 September 2021. On 29 October 2021, the Government received a proposal from the University of Minnesota, and on 13 December 2021, the University of Minnesota accepted the Government's counteroffer reflecting the following:

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The settlement firm-fixed price to be awarded is $266,671 for the one-year base period, $271,044 for the first one-year option period, and $275,811 for the second one-year option period, totaling $813,526 for the base period and two options.

The subject action is a sole-source follow-on to sole-source contract FA8810-17-P-0001 (1 base year and three one-year option periods, at an average value of $165,428 per year). The current settlement price represents an estimated $122,033 increase in per-year price compared to that of FA8810-17- P-0001. This increase is due to a combination of the following: estimated inflation; additional funding needed to provide support for and usage of new equipment and methodology at the facility; and an increase in facility expenses due to a lapse in service between the previous contract and the subject contract under consideration. This contract and its predecessor represent the University of Minnesota's exclusive customer supporting operations at the Mount Lemmon Observatory Facility.

Without an existing Government contract in place or anticipated Government contract forthcoming, the University of Minnesota would close operations at the facility. Considering the unique, mission-critical capabilities provided to the Government by the facility, and the facility's operational dependence on the Government's contract, it is in the Government's best interest to support the facility's continued operation and agree to the increased expenses resulting in part from the lapse in services. The Government Technical Evaluation Team assessed the increase in price relative to the original Government estimate and determined that the increased proposed costs are consistent with the expected rates for the effort and work to be performed. The Government will pursue extensive mitigation efforts to prevent lapses in service between this and any future MLOF requirements if/as needed.

Market research performed in advance of the solicitation showed that locating infrared telescopes that meet both the technical and availability requirements is exceedingly rare. The most reliable sources of historical pricing data available are the two complementary observation facilities the Air Force has historically contracted with to obtain similar or identical ground truth data necessary for the radiometric calibration of its SBIRS satellites: Mount Lemmon Observatory Facility (MLOF) and Advanced Electro-Optical System (AEOS) at the Air Force Research Laboratory (AFRL) in Maui, Hawaii.

Due to yearly usage volume variations between the two comparable facilities, a per-unit comparison was first calculated to determine the MLOF settlement price as fair and reasonable. AEOS/AFRL is available to the Government for two-week observation campaigns, 4 times per year. The Government used comparable two-week periods from each contract to first analyze price on a per-unit basis. The site under consideration in this present action, MLOF, makes the observatory available to the Government between 100 and 144 nights per year (depending on length of the monsoon season).

Using this 100-144 night window, costs to the Government are estimated to range between $25,926 and $38,614 per each two-week period of observation time. In comparison, the other supplemental site the Air Force uses to perform substantively similar calibration services, AEOS/AFRL, costs the Government approximately $427,000 per two-week observation campaign (funded by MIPR).

To further substantiate the MLOF settlement price as fair and reasonable, the Government then compared the total settlement dollar value of the three-year MLOF requirement with the total price of Government usage at AEOS/AFRL over a comparable three-year period. The total settlement price of the current MLOF requirement is $813,526. The total price of Government usage at AEOS/AFRL over a

April 2021 Security Marking (select from the drop-down list) Page 8 of 9 comparable three-year period is approximately $4.98M.

Even with the increased costs in the current 29 October 2021 UMN proposal, MLOF's per-unit costs are only between 6% and 9% of the AEOS/AFRL observatory site, which performs substantively similar services for the Air Force. The total price of the MLOF contract over the three-year period of performance is only 16% of the total price of Government usage at AEOS/AFRL over a comparable three-year period. Furthermore, MLOF is available to the Government between 100-144 nights per year compared to AEOS/AFRL's total of 56 nights. The relatively low cost and high availability of MLOF provide an excellent total value to the Government.

Considering the above rationale, the Contracting Officer determines the value of this action to be fair and reasonable IAW FAR 13.106-3(a) and FAR 12.209. To make this determination, the Contracting Officer relied primarily on a comparison of the current quoted price with prices of similar or identical services previously purchased by the Government and determined to be fair and reasonable.

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

See Section VI

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

N/A

X. List of any sources that expressed, in writing, an interest in the acquisition.

The University of Minnesota has expressed their full interest and capability of fulfilling the requirement. Other companies were called or e-mailed for further information, but none provided positive response.

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.

The Approved J&A for previous contract FA8810-17-P-0001, signed 30 May 2017, stated that future acquisitions would consider opportunities for competition for this service. Efforts to identify competitive sources to support this current requirement yielded substantively similar results as previously executed market research efforts. As detailed in this J&A and the associated market research report, a sole-source action for this service is justified as the same barriers to competition remain in effect.

The Government will monitor the market place to validate that there is still a need for the University of Minnesota to maintain the MLOF in order to maintain the engineering and research capability required for SBIRS support. If the future marketplace indicates that there is no longer a need to

April 2021 Security Marking (select from the drop-down list) Page 9 of 9 maintain the SBIRS-specific observation services at MLOF, then the requirement will be competed.

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.