A3_-_ORS-5_Payment_Plan_v10.pdf

Attachment 3

To

FA8818-15-R-0003

MILESTONE PAYMENT PLAN

7 April 2015

I. Basis of Payment The basis of payment for this effort shall be the successful accomplishment of event milestones scheduled for the Launch Service (LS) mission throughout the period of performance of the contract. The milestones represent meaningful efforts or actions that are an integral and necessary part of order performance. The basis for an event should be either specifically described events or a measurable criterion of performance.

Included within this Payment Plan is a description of what constitutes successful performance of each event. For purposes of establishing and calculating payment amounts, the dollar amount associated with each milestone will be calculated based on the percentage of the total contract price for CLIN 0001 assigned to each milestone.

A. Milestone Success Criteria and Completion Evidence Each event milestone has associated measurable success criteria that serve to validate milestone accomplishment. All milestone success criteria must be met before the milestone payment will be authorized. When the Launch Services Contractor (LSC) has successfully completed all applicable milestone success criteria, the LSC shall provide a written Request for Interim Payment (RIP) to the Procurement Contracting Officer (PCO). This RIP shall include supporting documentation to substantiate meeting the milestone success criteria as provided in the completion evidence defined herein.

B. Event Milestone Payments and Event Timing The RIP may not be submitted more often than once monthly, regardless of how many milestones have been completed in that month. Therefore, the RIP may include a payment request for multiple milestones. Completion of milestones and subsequent RIPs may be submitted non-successively (e.g., if milestone two is completed before milestone one, then the LSC may submit a RIP for milestone two before a RIP for milestone one). In the event the LSC completes a milestone ahead of the milestone completion date, the LSC may submit a proper invoice and the Government will consider on a case-by-case basis, the early payment of the milestone.

The PCO will determine whether or not the LSC has successfully met each of the milestone success criteria based on inputs provided by the Operationally Responsive Space (ORS) Launch IPT, SMC/ADK, and their support personnel (to include Government and Aerospace Corporation). Written concurrence from the ORS-5 Launch IPT that the LSC has successfully met the milestone success criteria is required before the PCO will authorize payment of the milestone.

To the maximum extent possible within fifteen (15) business days after receipt of the LSC’s RIP, the PCO will provide written notification to the LSC specifying which milestones contained in the RIP are determined to be “met” (complete) and, if necessary, which are considered “not met” (incomplete). For milestones identified as incomplete, the PCO will: (1) specify in the notification the issue(s) that led to t h e determination based upon the milestone success criteria and completion evidence provided herein, and

(2) The corrective action(s) required to complete the milestone. The Government and LSC will ensure agreement and understanding of the corrective actions, and the LSC will make a good faith effort to quickly reconcile any incomplete milestones. When the LSC accomplishes the corrective actions, the LSC will submit an RIP addendum to the PCO for Government review. To the maximum extent possible within fifteen (15) business days after receipt of the LSC’s RIP addendum, the PCO will provide a written notification to the LSC specifying whether the Government concurs that all corrective actions have been accomplished and the milestone has been “met” (completed).

For each milestone, the Estimated Completion Date is the estimated date that the LSC will complete the payment event and submits the associated RIP for payment of each milestone under this Plan. For each milestone, the value in the percentage “%” column of Table 1 indicates the percentage of the contract value of CLIN 0001 that will be used to calculate the dollar amount to be paid to the LSC upon successful completion of the milestone.

C. Event Milestone Schedule Criteria for payment of each event milestones appear in Table 1. In no event shall the LSC receive payments in excess of 80% of the total contract price until after contract completion [Space Vehicle (SV) delivery on orbit IAW contract clause Federal Acquisition Regulation (FAR) 52.212-04, Addendum to Contract Terms and Conditions—Commercial Items (Dec 2014)]. Given that defects in service for the last milestone 8, Post-Launch Assessment Report, are not suitable for correction by re-performance, the Contracting Officer has determined that pursuant to FAR 52.246-4(e) the appropriate relief for the Government in the event of milestone 8 defect, e.g. mission failure, is to reduce the contract price by the amount of the full milestone 8 payment, which appropriately reflects the reduced value of the services performed.

Table 1: Payment Event Schedule

Milestone

Payment Event

Accomplishment Criteria

Est. Comp.

Date

Total Payment (Dollar Value)*

% of FFP CLINs

Kick Off Meeting

Vehicle Overview, Proposed Schedule, Risks to implementation of PWS

ATP + 2

weeks

To Be Filled In

By Offeror

5%

Services

Requirements Review (SRR)

The Contractor shall conduct an SRR prior to the Preliminary Design Review (PDR) to review the design requirements

ATP + 3

Months

10%

Preliminary Design Review

(PDR)

The Contractor shall conduct a preliminary design review to present preliminary design, operation, and interface aspects of the launch service and to demonstrate that the preliminary design meets all performance allocations; evaluate the safety of the design and its ability to meet safety requirements; document all design trades considered; and to gain ORS approval to proceed with further design maturation and refinement.

SRR + 3

15%

Critical Design Review

(CDR)

The Contractor shall conduct a CDR before significant fabrication activity begins. The Contractor shall present a final detailed design using drawings, analyses, and evaluation testing that shows the design meets final performance and interface specifications, safety requirements, and mission objectives.

PDR + 6

Design Certification

Review (DCR)

The Contractor is required to demonstrate through the DCR that subsystems are “qualified” because they have been tested, analyzed, demonstrated, or shown by similarity to meet all functional requirements and demonstrate margin over all expected storage, shipping, handling, flight, and acceptance environments.

LSRR-1

month

Launch Service Readiness Review

(LSRR)

The Contractor shall conduct a Launch Service Readiness Review to demonstrate that the launch site and launch vehicle are ready to proceed with launch vehicle processing activities at the launch site.

Launch-3

Flight Readiness

Review (FRR)/Launch

Readiness Review (LRR) &

Launch

The Contractor shall conduct a FRR for the mission to ensure the launch vehicle is acceptable for flight and all Range and other mission requirements have been met, or will be satisfied prior to launch.

FRR: Launch

– 5-10 Days, LRR: Launch

– 2 days

5%

Post-Launch Assessment Report

Include verification that:

i. The launch vehicle orbit at ORS-

5 insertion has been determined by at least two independent sources.

ii. All anomalies have been documented, and anomalies related to the ORS-5 space vehicle have had at least one credible cause identified to aid in possible SV recovery efforts.

Launch+2

20%

*The dollar amount for each milestone is to be filled in by the Offeror, and is equal to the percentage listed in the last column multiplied by the value of the contract (CLIN 0001) prior to award of each milestone. No adjustment to the payment will occur after milestone award.

MILESTONE 1: Kick-Off Meeting

Description:

The Kick-off meeting shall be conducted by the contractor at a facility determined by the contractor and shall consist of a presentation of the proposed launch service, including, but not limited to, the launch service overview, the proposed schedule, launch service/SV dependencies and risks to implementing the requirements of the PWS and TRD.

Success Criteria:

1. Present the Launch Service Overview to the level of detail presented in the proposal.

2. Present the proposed Schedule with Launch Service/Space Vehicle dependencies highlighted to a sufficient level for the space vehicle contractor to incorporate launch service milestones into the SV schedule.

3. Present the known risks of proposed launch service to the implementation of PWS and TRD requirements.

Completion Evidence:

1. CDRL A007, Integrated Master Schedule (IMS) with acceptance sheet signed by the COR and the

PCO.

2. CDRL A008, Technical Report – System Safety Program Plan, and Risk Management Plan with acceptance sheet signed by the COR and the PCO.

MILESTONE 2: Services Requirements Review (SRR)

The Contractor shall conduct an SRR to ensure that key system requirements have been properly identified, ensure that the requirements are defined and verifiable, and show the service design will meet, or have a plan to meet, the requirements.

1. Identify and define the service requirements to a level adequate to verify launch service performance capabilities meet the requirements in the PWS and TRD.

2. Present the launch service design restrictions, limitations, and known violations to the PWS and TRD requirements.

3. Present the functional interfaces between the launch system, the range, and the space vehicle and interfaces between new and existing launch vehicle systems and show how those interfaces meet the PWS and TRD requirements.

4. Present the Space Vehicle Environmental requirements (e.g., thermal, contamination, vibration, pressure, Electromagnetic Compatibility (EMC), shock, launch complex RF, and lightning) to demonstrate compliance with the TRD.

5. Present the orbital requirements, launch vehicle performance, launch window injection accuracy, and deployment attitudes and rates to demonstrate compliance with the TRD.

1. CDRL A001, Presentation (to include Meeting charts and list of attendees), handout material, minutes, and accompanying action item lists from the formal review with acceptance sheet signed by the COR and the PCO.

MILESTONE 3: Mission Specific Preliminary Design Review (PDR)

The Contractor shall conduct a preliminary design review to present preliminary design, operation, and interface aspects of the launch service and to demonstrate that the preliminary design meets all performance allocations; evaluate the safety of the design and its ability to meet safety requirements; and document all design trades considered. The Contractor shall discuss analyses performed and their results along with comparisons to any similar proven designs.

1. Present the preliminary design of the launch service, including a preliminary design of mission specific services, showing compliance with the PWS and TRD requirements.

2. Present a preliminary qualification plan for the launch service that shows adequate margins for all launch service design elements.

3. Demonstrate that the launch service satisfies the functional and performance baseline defined by the

TRD.

4. Demonstrate that the external interfaces of the launch service (with the range and the SV) represent a complete set.

5. Presentation of preliminary models and analyses that demonstrate the launch service meets the requirements of the PWS and TRD

6. Demonstrate that preliminary plans are established to support SV-Launch Service integration and test as required by the PWS and TRD.

7. Presentation of launch service risks of meeting the schedule and technical requirements of the PWS and TRD.

8. Delivery of all CDRLs due at PDR that are in compliance with the Data Item Descriptions and the requirements of the PWS and TRD.

minutes, and accompanying action item lists from the formal review with acceptance sheet signed by the COR and the PCO.

2. CDRL A003, Preliminary Space Vehicle to Launch Service Interface Control Document with acceptance sheet signed by the COR and the PCO.

MILESTONE 4: Mission Specific Critical Design Review (CDR)

The CDR will demonstrate the launch service design has been completed such that all requirements have been satisfied. The Contractor shall present a final detailed design using drawings, analyses, and evaluation testing that shows the design meets final performance and interface specifications, safety requirements, and mission objectives. The Contractor shall identify planned qualification and acceptance tests to be performed to prove validity.

1. Present the final launch service design, including the final design of mission specific services, showing compliance with the PWS and TRD requirements.

2. Demonstrate the technical adequacy of the launch service to meet the requirements of the LV- SV Interface Control Document. (CDRL A003)

3. Present the Requirements Verification Matrix including how all the requirements will be verified. (CDRL A004)

4. Demonstrate all government approvals necessary to execute the launch service are on schedule to be completed to support the launch date.

5. Demonstrate that all external agreements required to execute the launch service are complete.

6. Present the final integration and test plans to accommodate SV integration.

7. Present an in-depth schedule review showing the launch date can be achieved.

8. Present program-specific issues and risks and closure plans showing the launch service can meet the launch date.

minutes, and accompanying action item lists from the formal review with acceptance sheet signed by the COR and the PCO.

2. CDRL A003, Baseline Space Vehicle to Launch Service Interface Control Document with acceptance sheet signed by the COR and the PCO.

MILESTONE 5: Mission Specific Design Certification Review (DCR)

The Contractor is required to demonstrate through the DCR that subsystems are “qualified” because they have been tested, analyzed, demonstrated, or shown by similarity to meet all functional requirements and demonstrate margin over all expected storage, shipping, handling, flight, and acceptance environments. Qualification is required to be accomplished against the Contractor’s standard(s). It is recognized that launch service Contractor chooses to maintain their own technical standards for design and test; therefore the chosen standard(s) will be provided to the ORS office 1 month prior to the DCR to aid in our understanding of the qualification status.

1. The contractor shall present the as-built and qualified implementation/fabrication, of system and subsystem level qualification/compatibility. A DCR for ORS-5 is essentially an updated critical design review (CDR) after the mission specific items have completed design, manufacturing/ fabrication, qualification testing, and final analysis.

2. The contractor shall present data on all elements of the entire life cycle (e.g. requirements, design, analysis, critical fabrication methods, testing, and anomaly resolution if any) of the flight critical mission specific systems and subsystems.

3. The contractor shall demonstrate that all action items related to the space vehicle interface have been closed.

minutes, and accompanying action item lists from the formal review with acceptance sheet signed by the COR and the PCO.

2. CDRL A003, Final Space Vehicle to Launch Service Interface Control Document with acceptance sheet signed by the COR and the PCO.

3. CDRL A004, ICD Requirements Verification Report with acceptance sheet signed by the COR and the PCO.

MILESTONE 6: Launch Service Readiness Review (LSRR)

The Contractor shall conduct a Launch Service Readiness Review to demonstrate that the launch site and launch vehicle are ready to proceed with launch vehicle processing activities at the launch site.

1. Present a launch service execution status including SV and launch vehicle configuration; integration status; summary of waivers; mission specific analyses results and status including updates if any from the CDR ; flight launch vehicle and launch site hardware/software production and testing status, to demonstrate that all the requirements of the PWS and TRD have been met.

2. Present a detailed schedule showing all activities (ground and flight) remaining to achieve a successful, on-time launch.

minutes, and accompanying action item lists from the formal review with acceptance sheet signed by the COR and the PCO. Final Chart package only, no preliminary chart package required.

2. CDRL A006, Preliminary Space Vehicle to Launch Service Integration Procedures with acceptance sheet signed by the COR and the PCO.

3. CDRL A008, Range Documentation with acceptance sheet signed by the COR and the PCO.

MILESTONE 7: Flight and Launch Readiness Reviews (FRR/LRR)

Description:

1. The Contractor shall conduct a FRR for the mission to ensure the launch vehicle is acceptable for flight and all Range and other mission requirements have been met, or will be satisfied prior to launch. The FRR shall include participation from any appropriate Range approving officials.

2. The FRR is held approximately five (5) to ten (10) days before launch.

3. The Contractor shall conduct a LRR for the mission to ensure the specific launch vehicle is acceptable for flight and all Range and other mission requirements have been met, or will be satisfied prior to launch. The LRR shall include participation from any appropriate Range approving officials. The LRR is held approximately two (2) days before launch. As a minimum, the Contractor shall provide verification that any open items and deviations from the FRR have been satisfied.

1. Present evidence that all critical items required to proceed into final launch countdown are ready.

2. Present evidence that the launch vehicle configuration is defined and all launch vehicle systems have been verified IAW launch site test plans.

3. Present evidence that all previously recorded action items have been closed or are reflected on the schedule.

4. Present evidence that all previously held Contractor’s readiness review actions have been closed or resolved.

5. Present evidence that Launch site/Range support organizations have committed to the support required to fulfill the launch service requirements of the PWS and TRD.

6. Presentation of closeout plans for any open work and demonstrate schedules are in place and supportable.

7. Present any constraints to launch and demonstrate resolution plans are developed and approved.

8. Demonstrate that mission risks are known and documented.

9. Present evidence that launch commit criteria for space vehicle and launch vehicle is approved and released.

10. Present any anomalies from previous missions and demonstrate the anomalies will not affect the ORS-5 launch service execution.

11. Present evidence that all hardware/software failures in the field have been closed.

12. Present evidence that open corrective actions/problems reports have been closed.

minutes, and accompanying action item lists from the formal review with acceptance sheet signed by the COR and the PCO. Final Chart package only, no preliminary chart package required.

2. CDRL A002, Countdown Documentation with acceptance sheet signed by the COR and the PCO.

MILESTONE 8: Post-Launch Assessment Report

The final post-flight report shall contain enough data to support the ORS-5 Contracting Officer’s space vehicle success determination. Mission Success and a Failed Mission are defined as follows:

1. Mission Success is defined as:

a. The space vehicle is placed into the required orbit by the launch service, and contact with the spacecraft is established; or

b. The launch service provider supplies flight data that shows the SV - Launch Services ICD (CDRL A003) requirements were met.

2. A Failed Mission is defined as:

a. Is destroyed during launch/flight due to the Launch Vehicle.

b. Is significantly damaged without proof that the Launch Services ICD (CDRL A003) requirements were met.

1. The launch service orbit at ORS-5 insertion has been determined by at least two independent sources.

2. All anomalies have been documented, and anomalies related to the ORS-5 space vehicle have had at least one credible cause identified to aid in possible SV recovery efforts.

3. The contractor has fulfilled the DID requirements of CDRL A005.

1. CDRL A005, Final Flight Report documentation with acceptance sheet signed by the COR and the

PCO.