JOFOC_REDACTED_Final.pdf

Rev.:1/2023

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

LYNDON B. JOHNSON SPACE CENTER (JSC)

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

(JOFOC)

For Solicitation 80JSC023CRS2/Commercial Resupply Services (CRS-2) Contracts/NNJ16GX08B, NNJ16GX07B, & NNJ16GU21B

Extension

1. Federal Acquisition Regulation (FAR) 6.303-2(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 National Aeronautics and Space Administration (NASA) Lyndon B. Johnson Space Center

(JSC).

The procuring agency is the National Aeronautics and Space Administration (NASA), and the contracting activity is JSC.

2. 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 award sole-source extensions from January 1, 2027 to December 31, 2030, for the current Commercial Resupply Services (CRS-2) contracts:

NNJ16GX08B to Space Exploration Technologies Corp. (SpaceX), NNJ16GX07B to Sierra Nevada Corp. (Sierra), and NNJ16GU21B to Northrop Grumman Systems Corp. (Northrop).

These contracts had an original award date of January 14, 2016 and are currently set to expire on December 31, 2026.

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

The CRS-2 contracts provide the International Space Station (ISS) delivery of pressurized and unpressurized cargo, return and disposal of pressurized cargo, disposal of unpressurized cargo, special tasks and studies, and ground support services for the end-to-end cargo resupply services.

All three CRS-2 contracts have a combined not-to-exceed (NTE) value of $14B, and approximately of the value has been utilized to-date. With approximately in value remaining, therefore this extension will not increase the overall NTE value. NASA plans to extend CRS-2 contracts in order to continue to acquire the above services. NASA reserves the right to award one, multiple, or no contract extensions. The modifications will extend the ordering period of performance through December 31, 2030.

4. 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.

3204(a)(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:

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. The rationale supporting the use of 10 U.S.C. 3204(a)(1) is described below.

The effort under the CRS-2 Contracts includes complex spaceflight operations that are subject to significant risks. Ensuring safe and reliable U.S. access to the ISS is critical. In order to maintain a reliable U.S.-based transportation system that has replaced the nation's dependency on the Russian Progress, NASA has determined that having multiple CRS-2 contractors working on, and ready to provide, uninterrupted reliable cargo resupply services is necessary to ensure redundant cargo transportation services to and from the ISS. Cargo resupply missions are a critical need for the ISS Program. Routine delivery of supplies supports continued human presence on orbit; ongoing research and utilization; and sustaining of the ISS. Mitigating schedule risk and maintaining uninterrupted cargo resupply services to and from the ISS is essential to ensure that the ISS remains a viable, life-sustaining, and productive facility. These services provide delivery of items that not only sustain the day-to-day operations of the ISS, but also deliver scientific research critical to the advancement of humans on both Earth and in space. These scientific investigations require years of preparation in advance of launch and are often on strict timelines that depend on reliable launch schedules. Having a redundant launch capability is crucial to maintain the viability of the ISS as a scientific laboratory. No companies other than the three incumbents have been identified which could provide the services required to continue the resupply missions.

Maintaining a cadre of contractors able to perform cargo resupply services will ensure that NASA meets its obligations to its international partners, and the Government's need to maintain the ISS. The ISS Program’s redundant approach also maximizes meeting Program objectives by reducing overall risk and best ensures successfully accomplishing safe and reliable cargo resupply missions to the ISS by providing flexibility for the Agency throughout contract performance.

In addition, both NASA and the CRS-2 contractors have invested significant efforts to prepare the ISS to support these CRS-2 visiting vehicles. The development of a new space flight vehicle certified to berth or dock with the ISS is a multi-year development program, which expends significant government resources. There are no other CRS-2 certified visiting vehicles in the current marketplace for providing cargo resupply to the ISS.

Extension of the existing contracts is the most effective means of ensuring continued provision of these services for the extended duration of the

ISS.

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 (GPE) website (www.Sam.gov) was published on March 2, 2023, in accordance with FAR Subpart 5.2. This posting informed potential sources of NASA’s intent to award sole-source contract extensions to SpaceX, Sierra, and Northrop. The results of this synopsis are summarized in Section 10 below.

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’s signature on this document indicates that the Contracting Officer has determined that the anticipated cost to the government will be fair and reasonable. The Contractors will be required to submit a proposal to be evaluated and negotiated by the Government. Prior to execution of the contractual instrument, a proposal analysis will be performed. The proposal analysis will ensure that the final agreed-to price for the contract actions are fair and reasonable. The price reasonableness will be established based on the comparison of historical prices that are currently in the CRS-2 contract, as well as a comparison of the prices proposed from all of the CRS-2 contractors. A price analysis will be documented in the Pre-negotiation Position Memorandum and Price Negotiation Memorandum for all proposals received for the CRS-2 extension.

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:

On March 2, 2023, a Non-Competitive Synopsis was issued for the CRS-2 extension, with a closing date of March 17, 2023. As a result of the synopsis, three companies expressed an interest by providing capability statements. None of the companies have cargo capability outlined within the per flight range of the current CRS2 contract(s), and therefore would not meet the ISS Program’s needs. See Section 10 below for more synopsis details.

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

For NASA, the CRS-2 services for the continued provision of highly specialized cargo delivery services to the ISS are considered to be available only from the current CRS-2 contractors for this extension. It is likely that new competition or an award to any other source would result in a substantial duplication of costs estimated between $15M to $500M.

This estimate includes historical CRS-2 pricing of joint integration activities, certification of the requirements, and ISS performance reviews to ensure a successful launch and install onboard the ISS. Additionally, collateral impacts of other ISS contracts to support integration of a new