NROL-68_70_and_91_Delta_IV_Heavy_J&As.pdf

Justification and Approval for Other than Full and Open Competition

I. CONTRACTING ACTIVITY.

Acquisition Office:

Authority:

Contract Number:

Contractor:

Air Force Space Command (AFSPC) Space and Missile Systems Center (SMC) Acquisition Office - Launch Systems Enterprise Directorate (SMC/LEK) 483 North Aviation Blvd.

El Segundo, CA 90245

Justification for Other Than Full and Open Competition, 10 U.S.C 2304 (c)(l) as implemented by FAR 6.302-l(a)(2)

FA881 l-16-R-0005

United Launch Services, LLC (ULS) 9501 E. Panorama Circle Littleton, CO 80112-3401

II. NATURE AND/OR DESCRIPTION OF THE ACTION BEING PROCESSED.

III.

The authority for this action is 10 U.S.C 2304(c)(l) as implemented by FAR 6.302-l(a)(2), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

This individual Justification and Approval (J&A) authorizes award of a new sole-source contract for the acquisition of the launch service for NROL-91 to United Launch Services, LLC (ULS).

This contract will involve the procurement of Delta IV Heavy launch vehicle production and launch services support.

DESCRIPTION OF SUPPLIES/SERVICES REQUIRED TO MEET AGENCY NEEDS.

Under the contemplated contract, the Air Force will acquire critical services necessary to satisfy space launch requirements for the National Reconnaissance Office (NRO). The Government will order the launch service (launch vehicle production and Delta IV Heavy launch support) for NROL-91, which requires the unique services of an integrated launch system to meet National Security Space (NSS) needs and Initial Launch Capability (ILC) date of

EEL V launch services are highly specialized and require 98% reliability due to the high dollar value and national importance of the payloads aboard the rockets. This effort requires mechanical, electromagnetic, environmental, and other specialized engineering disciplines necessary for controlled explosions and remote controlled operations in dynamic space environments to insert spacecraft into orbit.

The approximate dollar value of the anticipated contract i-which includes Space Launch Services for NROL-91 's launch vehicle production and transportation; launch operations, support to independent Government mission assurance, base and range support, mission commodities, all associated program management and systems engineering functions and tasks, and any required Quick Reaction and Anomaly Resolution. The total period of performance is expected to be from Authorization to Proceed (ATP) to thirty days after.the launch ofNROL-91, which is anticipated to be no later that I

IV.

v.

STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION.

The statutory authority permitting Other than Full and Open Competition, 10 U.S.C. 2304(c)(l), as implemented by FAR 6.302-l(a)(2). FAR 6.302-l(a)(2) states, "When the supplies or services required by the agency are available from only one responsible source, or, for DoD, NASA, and the Coast Guard, from only one or a limited number of responsible sources, and no other type of supplies or services will satisfy agency requirements, full and open competition need not be provided for."

DEMONSTRATION THAT THE CONTRACTOR'S UNIQUE QUALIFICATIONS OR

NATURE OF THE ACQUISITION REQUIRES THE USE OF THE AUTHORITY CITED

ABOVE (APPLICABILITY OF AUTHORITY).

In accordance with FAR 6.302-l(a)(2), full and open competition need not be provided when the supplies or services are available from only one responsible source "and no other type of service will satisfy agency requirements." With the Delta IV Heavy launch vehicle, ULS is the only certified source with the unique capabilities to provide the services to meet the agency's requirements. No other U.S. based launch service provider has a launch vehicle that can meet mission requirements and the ILC for this service. If the ILC date is not protected, it will jeopardize the availability of critical operational capabilities necessary to support the warfighter.

For an explanation as to how long it would take for someone else to obtain this capability refer to the classified addendum.

When the design for the NROL-91 space vehicle was initiated, it was determined that a Heavy launch vehicle would be required to meet the mission requirements. ULS' Delta IV Heavy is the only certified launch vehicle capable of meeting mission requirements (see classified addendum).

ULS is currently the only provider with to support the NROL-91 launch. Early integration activities would be required to design and develop the mission-unique hardware necessary to launch this mission on any other launch vehicle. These early integration activities also establish whether the competitor's launch vehicle environment will exceed the satellite design limits and whether it can meet the NROL-91 interface and mission design requirements. The space vehicle would need to be analyzed and tested for any new launch vehicle environments not bounded by the current design. In order to mitigate any technical and/or schedule risk, these activities would be required prior to a launch service award to ensure compatibility between the launch vehicle and space vehicle. Therefore, NRO/ Office of Space Launch (OSL) released Requests for Proposals (RFPs) to for early integration activities for NROL-91 in FY16, with an anticipated award date in FYl 7.

completion of early integration activities and mission unique design and development, launch vehicle will not be able to support the agency's requirements for the NROL-91 mission. No other sources provided a response to the FBO posting. Accordingly, it was determined that competing NROL-91 would not be feasible, and ULS is the only firm capable of providing the services described in Section III above

In addition to the launch vehicle compatibility concerns, NROL-91 requires mission unique handling at the launch site.

I

VI.

ULS is currently the only provider with the necessary mission unique hardware to support the NROL-91 launch.

The agency's assessment is that ULS is the only responsible source capable of providing the supplies and services described in Section III above because the NROL-91 mission has very complex satellite to launch vehicle integration and unique launch site handling requirements, Please refer to the classified addendum for additional information and detail.

DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE SOLICITED

FROM AS MANY POTENTIAL SOURCES AS PRACTICABLE.

On 5 February 2016, the NRO/OSL sent RFPs activities for NROL-91. In response to this RF

ULS provided a responsive proposal to the RFP for early integration activities for NROL-91.

A second attempt was made to ensure that multiple offers were received for NROL-91 launch services. In accordance with FAR 5.201 and FAR 5.203(a), a combined Sources Sought Synopsis and Pre-Solicitation Notice (FA8811-16-R-0005) was posted to FedBizOpps (FBO) on 04 August 2016 with responses due by 19 August 2016. The purpose of the combined Sources Sought Synopsis and Pre-Solicitation Notice was to inform industry of the Government's intent to issue a sole source contract with ULS for the NROL-91 Delta IV Heavy launch service. No responses were received.

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE ANTICIPATED

COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE.

The Contracting Officer determines that the anticipated cost to the Government will be fair and reasonable. This effort will be negotiated as a new contract action requiring a fair and reasonable determination, in accordance with FAR 15.403. The Contracting Officer will conduct cost and price analysis and will rely on the following input, analyses, and/or recommendations: audit report from Defense Contract Audit Agency (DCAA), Defense Contract Management Agency (DCMA) recommendations, program office technical evaluations, historical prices for same or similar items, and analysis of actuals.

VIII. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE RESULTS,

OR A STATEMENT OF THE REASONS MARKET RESEARCH WAS NOT

CONDUCTED.

Market research for EEL V launch providers has been ongoing over the past five years via Requests for Information (RFis), Statement oflntent (SOI) evaluations, and publication of the Air Force launch certification guide. The market research was conducted to determine if additional sources exist that are capable of satisfying EEL V system requirements for launch services.

IX.

In August 2014, the agency released a booster propulsion and launch system RFI that provided insight into the industry's capabilities for new/modified launch systems to meet NSS requirements. The agency released a follow-up RFI to a subset of the respondents in February 2015 for a better understanding of their capabilities and business case. On 29 January 2016, the agency requested discussions wit

This request sought feedback on: fulfillment of NSS unique needs, launch market forecast, assured access to space compliance, launch service ordering timelines, cost and pricing approach, and compliance documents. This market research provided insight into the launch industry's projected timeline for availability of new launch systems.

Market research, in accordance with FAR Part 10, was conducted by synopsis of the proposed acquisition, advising industry of the pending acquisition and soliciting inquiries from interested parties. The market research concluded that ULS is the only launch vehicle provider that is capable of providing the unique capabilities to satisfy the agency's requirements for NROL-91.

ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND OPEN

COMPETITION.

None.

X. LIST OF SOURCES, IF ANY, THAT EXPRESSED INTEREST IN THE ACQUISITION.

XI.

ULS expressed interest in this acquisition. As explained in Sections V and VIII, ULS is the only responsible source that is available to satisfy the agency's requirements for this launch service:

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.

10 U.S.C 2273(a) states "It is the policy of the United States for the President to undertake actions appropriate to ensure, to the maximum extent practicable, that the United States has the capabilities necessary to launch and insert United States national security payloads into space whenever such payloads are needed in space." In addition, the National Space Policy (28 Jun 2010) directs agencies to continue to "develop launch systems and technologies necessary to assure and sustain future reliable and efficient access to space." The Government is committed to encouraging competition for NSS launch service in order to provide flexibility to maintain access to space and reduce program costs. The Air Force, NRO, and NASA have adopted a joint New Entrant Certification Strategy, dated 27 October 2011, which provides a methodology for certification oflaunch vehicles based on risk classifications for individual payloads. The framework provides multiple paths to on-ramp potential New Entrants. In addition, the New Entrant Certification Guide details the certification requirements for New Entrants.

The Air Force has started the certification process for New Entrants and the NRO is establishing early integration efforts with New Entrants for future Heavy class missions. In addition, the Air Force competitively awarded Other Transaction Authority (OTA) agreements to develop Rocket Propulsion System prototypes and plans to competitively award OT A agreements to develop Launch System prototypes to provide NSS launch services. The Air Force intends to compete launch services using the newly developed systems starting in procurement year 2020.

XII. CERTIFICATION BY THE CONTRACT OFFICER.

As evidenced by his signature above, the Contracting Officer has determined this document to be both accurate and complete to the best of his knowledge and belief.

XIII. CERTIFICATION BY THE TECHNICAL/REQUIREMENTS PERSONNEL.

As evidenced by their signature above, the technical and/or requirements personnel have certified that any supporting data contained herein, which is their responsibility, is both accurate and complete.

COORDINATION AND APPROVAL DOCUMENT

Contracting Activity: SPACE AND MISSILE SYSTEMS CENTER (SMC), LAUNCH SYSTEMS

ENTERPRISE DIRECTORATE CONTRACTS DIVISION (LEK)

Purchase Request/Local Identification Number: J&A 16-41 Program Name: Evolved Expendable Launch Vehicle (EELV) Program National Reconnaissance Office Launch (NROL)-91 Launch Services Program Type: PEO (ACAT 1D) Authority: 10 U.S.C. 230~nted by FAR 6.302-1 Estimated Contract Cost:~ J&A Type: Individual

Contracting Officer:

ChiefEELV Systems Division:

Local Legal Reviewer:

Chief of the Contracting Office:

Competition Advocate:

Senior Center Contracting Official:

Program Director:

Date Signed

Date Signed

/o :2 5 /;;oft Date Signed

Date Signed

PEO/ Commander (Requirements Cognizance):

Deputy Assistant Secretaty (Contracting):

APPROVED:

Senior Procurement Executive: (>$93M)

1 Dec 16 ii

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

Funding Level for this J&A Document:

Contracting Activity: SPACE AND MISSILE SYSTEMS CENTER (SMC), LAUNCH SYSTEMS

ENTERPRISE DIRECTORATE CONTRACTS DIVISION (LEK)

Purchase Request/Local Identification Number: J&A 16-13

Program Name: Evolved Expendable Launch Vehicle (EELV) Program NROL-68 & 70 Launch Services Program Type: PEO (ACA T ID)

Authority: 10 U.S.C. 2304(c)(I), as implemented by FAR 6.302-1 Estimated Contract Cost:

J&A Type: Individual

Coordination (AFF A

Contracting Officer:

ChiefEELV Acquisition Division:

Local Legal Reviewer:

Chief of the Contracting Office:

Competition Advocate:

Senior Contracting Official:

Date Signed

Date Signed

Date Signed

Justific.ation and Approval (J&A) for.Other Than FuJl· and Open Competition.

Program Director:

PEO/ C01runander (Requirements Cognizance):

Deputy Assistant · Secretary ( Cpntracting)

APPROVED:

Senior Proouremen:t Ex'ecu:ti.ve:

Signed

• r

Date Signed

·s1tv\.

Date Signed

Ft.J\.1~.\~ . Date S~gned

2. 2-- ..:Tu"" I lo

Date ii

I.

CONTRACTING ACTIVITY.

Acquisition Office:

Authority:

Contract Number:

Contractor:

Air Force Space Command (AFSPC) Space and Missile Systems Center (SMC) Acquisition Office - Launch Systems Program Directorate (SMC/LEK)

483 North Aviation Blvd.

El Segundo, CA 90245

10 U.S.C 2304 (c)(l) as implemented by FAR 6.302-l(a)(2)

FA881 l-18-C-XXXX

United Launch Services, LLC (ULS) P.O. Box 277005

Littleton, CO 80127

II. NATURE AND/OR DESCRIPTION OF THE ACTION BEING PROCESSED.

The Authority for this action is 10 U.S.C 2304(c)(l) as implemented by FAR 6.302-l(a)(2), Only One

Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

This individual Justification and Authorization (J&A) is to authorize a new sole-source contract for the acquisition of launch services for NROL-68 and NROL-70 from United Launch Services, LLC (ULS).

ill. DESCRIPTION OF SUPPLIES/SERVICES REQUIRED TO MEET AGENCY NEEDS.

Under the contemplated contract, the Air Force will acquire critical services necessary to satisfy space launch requirements for the National Reconnaissance Office (NRO). The Government will order launch services for NROL-68 and NROL-70, which requires the unique services of an integrated launch system to meet National Security Space (NSS) needs and Initial Launch Capability (TLC) dates of FY2 l and FY22, respectively.

EELV launch services are highly specialized and require 98% reliability due to the high dollar value and national importance of the payloads aboard the rockets. This effort requires mechanical, electromagnetic, environmental, and other specialized engineering disciplines necessary for controlled explosions and remote controlled operations in dynamic space environments to insert spacecraft into orbit.

The approximate dollar value of the anticipated contract islllllThe total period of perfonnance is expected to be from Authorization to Proceed (ATP) to thirty days after the launch of NROL-70, which is anticipated to be no later than Fourth Quarter (4Q) FY22.

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION.

The statutory authority of this action is contracting by Other than Full and Open Competition, 10 U.S.C.

2304(c)(l), as implemented by FAR 6.302-l(a)(2). FAR 6.302-l(a)(2) states, "When the supplies or services required by the agency are available from only one responsible source, or, for DoD, NASA, and the Coast Guard, from only one or a limited number ofresponsible sources, and no other type of supplies or services will satisfy agency requirements, full and open competition need not be provided for."

V. DEMONSTRATION THAT THE CONTRACTOR'S UNIQUE QUALIFICATIONS OR

NATURE OF THE ACQUISITION REQUIRES THE USE OF THE AUTHORITY CITED

ABOVE (APPLICABILITY OF AUTHORITY).

In accordance with FAR 6.302-1 (a)(2), full and open competition need not be provided when the supplies or services are available from only one responsible source. With the Delta IV Heavy, ULS is currently the only certified and responsible source with the unique capabilities to provide the services to meet the agency's requirements. This J&A will prevent unacceptable delays in fulfilling the agency's ILC requirements by providing the capabilities to launch the NROL-68 and NROL-70 space vehicles using the Delta IV Heavy launch vehicle. For the NROL-68 and NROL-70 missions, ULS is the only responsible source with the unique capabilities to satisfy the agency's ILC requirements. The ILC dates for NROL-68 and NROL-70 to meet National Security mission objectives are no later than respectively. If the ILC date is not protected, it will jeopardize the availability of critical operational capabilities necessary to support the warfighter. Please refer to the classified addendum for additional information and detail.

The NROL-68 and NROL-70 missions were designed to launch on ULS's Delta IV Heavy. Early integration activities would be required to design and develop the mission-unique hardware necessary to launch this mission on a competitor's launch vehicle. These early integration activities would establish whether the competitor's launch vehicle environment will exceed the satellite design limits and whether it can meet the NROL-68 and NROL-70 unique interface and mission design requirements. Each space vehicle would need to be analyzed and tested for any new environments not bounded by the current design. Based on the level of effort required, early integration activities are projected to take a minimum of3-5 years and are intended to infonn a competitive proposal and launch service award. In order to mitigate any technical and/or schedule risk, these activities are required prior to a launch service award to ensure compatibility between the launch vehicle and space vehicle. Given the estimated timeline to complete these activities, a competitor's early integration activities would not be complete in time to support competitive awards in 1 Q FYI 8 and IQ FY 19 and, ultimately, the required ILC dates. Please refer to the classified addendum for additional information and detail.

In addition to the launch vehicle compatibility concerns, NROL-68 and NROL-70 require mission unique handling at the launch site.

The assessed timeline to complete these activities on a competitor's launch vehicle does not support the required ILCs for these missions. Please refer to the classified addendum for additional information and detail.

To meet the required ILCs, ULS requires immediate contractual commitment to begin the production process and procure the necessary subsystems to support the production through launch timeline. To support this time line, the NRO' s Office of Space Launch began long-lead procurements under the NRO Integration Contract for EEL V (NICE) to preserve ILCs following the NROL-68 and L-70 launch service pre-solicitation notice closure in December 2015. Additional long-lead procurement is required by IQ

FYI 7. Please refer to the classified addendum for additional information and detail.

The NROL-68 and NROL-70 launch service procurement ATPs are planned for IQ FY18 and IQ FY19, respectively. These ATPs are 3 years prior to the respective ILCs; however, to support the lllrroduction timeline and to protect ILCs, the NRO's Office of Space Launch is procuring the necessary long lead hardware as stated above.

Due to the complexity of integration and unique requirements of both the NROL-68 and NROL-70 missions, the required ILCs for both, and the current absence of early integration engineering data on any competitor's launch system, the agency's assessment is that ULS is currently the only source capable of providing the services described in Section III above without the agency experiencing unacceptable delays in fulfilling its ILC requirements.

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE SOLICITED

FROM AS MANY POTENTIAL SOURCES AS PRACTICABLE.

In accordance with FAR 5.201 and FAR 5.203(a), a synopsis (Pre-Solicitation Notice) was posted to FedBizOpps (FBO) on 7 December 2015 with responses due by 22 December 2015.

was the only company to submit a response. Based on U.S.C. Section 50131, which requires that the United States Government shall acquire space transportation services from United States commercial providers, the foreign company was detennined to not be an eligible source to perform these services.

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE ANTICIPATED

COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE.

The contracting officer anticipates the cost for this effort will be considered fair and reasonable. This effort will be negotiated as a new contract action requiring a fair and reasonable determination, in accordance with FAR 15 .403. The contracting officer will conduct cost and price analysis to determine the price fair and reasonableness. The contracting officer will rely on any of, but not limited to, the following input, analyses, and/or recommendations: audit report from Defense Contract Audit Agency (DCAA), Defense Contract Management Agency (DCMA) recommendations, program office technical evaluations, historical prices for same or similar items, analysis of past performance and actuals.

VIII. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE RESULTS,

OR A STATEMENT OF THE REASONS MARKET RESEARCH WAS NOT

CONDUCTED.

Market research for EELV launch providers has been ongoing over the past four years via Requests for Information (RFis), statement of intent (SOI) evaluations, and publication of the Air Force launch certification guide. The market research was conducted to determine if additional sources exist that are capable of satisfying EEL V system requirements for launch services.

In August 2014, the agency released a booster propulsion and launch system RFI that provided insight into the industry's capabilities for new/modified launch systems to meet NSS requirements. The agency released a follow-up RFI to a subset of the respondents in February 2015 for a better understanding of their capabilities and business case. In addition, the agency posted a pre-solicitation notice for information purposes and a statement of intent to award a sole source contract to ULS for two Delta IV

Heavy launches in December 2015.

The agency also reviewed all new entrant SOis submitted by launch service providers. The following

SOis have been received to date:

1In consideration of the assessed timeline to complete the necessary early integration activities for these launch services, ULS's Vulcan launch vehicle will not be able to support the agency's ILC requirements for the NROL-68 and NROL-70 missions.

Furthermore, the market research concluded that ULS is currently the only launch vehicle provider that is capable of providing the unique capabilities to satisfy the agency's requirements for NROL-68 and NROL-70 via their Delta IV Heavy.

IX. .ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND OPEN

COMPETITION.

None.

x. LIST OF SOURCES, IF ANY, THAT EXPRESSED INTEREST IN THE ACOIDSITION.

ULS and expressed interest in this acquisition. As explained in Section V, the Air Force is not able to make a competitive award without causing an unacceptable delay to the required launch date.

Therefore, ULS is the only responsible source that is currently available to satisfy the agency's requirements for this launch service order.

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.

10 U.S.C 2273(a) states "It is the policy of the United States for the President to undertake actions appropriate to ensure, to the maximum extent practicable, that the United States has the capabilities necessary to launch and insert United States national security payloads into space whenever such payloads are needed in space." In addition, the National Space Policy (28 Jun 2010) directs agencies to continue to "develop launch systems and technologies necessary to assure and sustain future reliable and efficient access to space." The Government is committed to encouraging competition for NSS launch service in order to provide flexibility to maintain access to space and reduce program costs. The Air Force, NRO, and National Aeronautics and Space Administration (NASA) have adopted a joint New

Entrant Certification Strategy, dated 27 October 2011, which provides a methodology for certification of launch vehicles based on risk classifications for individual payloads. The framework provides multiple paths to on-ramp potential New Entrants. In addition, the New Entrant Ce1tification Guide details the certification requirements for New Entrants.

The Air Force has started the certification process for New Entrants. In addition, the NRO is establishing early integration efforts with New Entrants for future Heavy class missions.

XII. CERTIFICATION BY THE CONTRACT 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) ce11ify that any supporting data contained herein, which is my (our) responsibility, is both accurate and complete.