JOFOC NNK13OS02B Contract Extension.pdf

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION (NASA)

John F. Kennedy Space Center (KSC)

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION (JOFOC)

For Delivery of Gaseous Nitrogen (GN2) into the Kennedy Space Center and Cape Canaveral

Air Force Station (KSC/CCAFS) Pipeline, NNK13OS02B

Federal Acquisition Regulation (FAR) 6.303- (b)(1) – Identification of the Agency and the contracting activity, and specific identification of the document as a “Justification for other than full and open competition.”

This document is a justification for other than full and open competition prepared by NASA

KSC. The procuring agency is NASA and the contracting activity is KSC.

FAR 6.303-2(b)(2) – The nature and/or description of the action being approved:

This justification provides the rationale for contracting by other than full and open competition to modify contract NNK13OS02B, Deliver Gaseous Nitrogen (GN2) into the Kennedy Space Center and Cape Canaveral Air Force Station (KSC/CCAFS) Pipeline, with Air Liquide Large Industries US LP, 9811 Katy Freeway, Houston, TX 77024. The contract modification will extend the contract an additional ten years. The period of performance end date will be July 31, 2033, in accordance with the contract extension deviation approved by NASA Headquarters on March 5, 2020.

FAR 6.303-2(b)(3) – A description of the supplies or services required, to meet the Agency’s needs (including the estimated value):

Provide gaseous nitrogen per specification MIL-PRF-27401, into the KSC/CCAFS nitrogen pipeline system to support center operations and space launch operations for the period beginning August 1, 2023, through July 31, 2033. The contract extension will be one ten year option. A deviation for contracting beyond five years was submitted to NASA Headquarters for approval and approval was received March 5, 2020. The services portion of the contract is to operate and maintain the KSC/CCAFS nitrogen and helium cross-country pipeline system and associated meter stations, telemetry systems and valve stations. Helium is procured under a separate supply contract. The estimated nitrogen quantity for the contract extension is 777,600,000 standard cubic feet per year. The estimated total contract extension value is $69.8 million.

FAR 6.303-2(b)(4) – An identification of the statutory authority permitting other than full and open competition:

The statutory authority permitting other than full and open competition is 10 U.S.C. Section

2304(c)(1), as implemented by FAR 6.302-1 only one responsible source and no other supplies or services will satisfy Agency requirements.

5. FAR 6.303-2(b)(5) – A demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited:

This modification is to allow for the continued supply of gaseous nitrogen into the KSC/CCAFS nitrogen pipeline system and operation/maintenance of the pipeline system. Air Liquide, the current provider, has been the KSC/CCAFS gaseous nitrogen pipeline supplier since the pipeline was first built in 1968.

Air Liquide has the in-place plant and equipment to support the KSC/CCAFS nitrogen pipeline requirements that no one else currently has. Air Liquide’s plant location on State Road 3, adjacent to the south perimeter of KSC, is a distinct barrier to competition. Not only is the plant tied directly to the pipeline, but also the main 9-mile-long supply line running into KSC is owned by Air Liquide and has been granted an enhanced use lease by KSC. Therefore, at this time, Air Liquide is the only source that can provide GN2 into the KSC/CCAFS pipeline.

6. FAR 6.303-2(b)(6) – A description of the 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 5.202 applies:

A notice to the Government Point of Entry Web site <beta.sam.gov> was not published. In accordance with FAR Subpart 5.202(a)(11) this contract action is being made under terms and conditions of an existing contract that was previously synopsized in sufficient detail to comply with the requirements of FAR 5.207.

7. FAR 6.303-2(b)(7) – A determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable:

The Contracting Officer (CO) has performed a price analysis of the contractor’s proposal in accordance with FAR 15.404-1(b). To determine the price to be fair and reasonable, the CO compared proposed pricing to information available on the current contract between NASA/KSC and Air Liquide (NNK13OS02B) and to the Independent Government Cost Estimate.

8. FAR 6.303-2(b)(8) – Description of the market research conducted, and the results, or a statement of the reasons a market research was not conducted:

Only Air Liquide has the in-place equipment to meet the Government’s requirements. Other potential suppliers would be required to invest approximately $50M in new capital equipment to meet the Government’s requirements. The Government’s forecasted requirements for low flow rate daily-use and substantially higher flow rate launch support use further decreases the potential of an operationally viable alternative by others to the existing condition at a competitive cost. The KSC/CCAFS GN2 pipeline system, which the contract supports, is a launch critical element supporting space-launch operations and is atypical of commercial type lines. Air Liquide is the only contractor capable of fulfilling the Government’s requirements for gaseous nitrogen and associated maintenance.

9. FAR 6.303-2(b)(9) – Any other facts supporting the use of other than full and open competition:

The KSC/CCAFS GN2 pipeline system is a launch critical element supporting space-launch operations. It would not be possible to conduct launch operations without the pipeline or a similar nitrogen supply system. Plant status and activities are monitored and reported as part of launch-countdown procedures. Plant anomalies are reported and tracked as closely as any on-site launch-support activity. Back-up plans are in-place to provide alternative GN2 support should the plant be unable to provide GN2 (such as a power outage). In addition, the GN2 the Government receives is not by any means a “commercial” item due to the very high pressure (6000 psi) and flow rates (16,000 scfm typical with capability up to 24,000 scfm) required by space launch operations. Commercial industrial nitrogen pipeline applications are typically only half of KSC/CCAFS high flow rate requirements. The only other comparable (but smaller) system in the United States is a GN2 pipeline at Vandenberg Air Force Base (VAFB), California, which is used to support west-coast space flight operations similar to those at KSC/CCAFS. The VAFB system is operated by Air Gas, a subsidiary of Air Liquide, but under a Defense Logistics Agency contract. Air Liquide is the only Industrial Gas contractor who has successfully supplied pipeline GN2 to KSC/CCAFS and VAFB pipelines. Future NASA Space Launch System (SLS) launches will require even more GN2 during week-of-launch, but only once per year. This combination of anticipated low daily flow rate requirements, sporadic high launch support flow rates, high infrastructure investment with multi-year implementation schedules, and virtually no expectation these conditions will change are significant impediments to creating competition via full and open contract options.

10. FAR 6.303-2(b)(10) – A listing of the sources, if any, that expressed an interest in writing in the acquisition:

Not applicable, see Section 6 above.

11. FAR 6.303-2(b)(11) – A statement of actions, if any, the Agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required:

The Agency continually attempts to overcome barriers to competition by analyzing different sources that might be qualified for similar future acquisitions. However, the knowledge and expertise of Air Liquide and the lack of proven operational systems from any other known source does not currently lend itself to this goal. If the requirement changes and another source develops and adequately proves a high pressure gaseous nitrogen system, the Agency will begin surveying the market for new sources prior to any further acquisitions for the same requirement.

6/2/2020