NNM14AA89D - LVSA JOFOC (2024-09-06) - Final Approved_Redacted.pdf

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NATIONAL AERONAUTICS AND SPACE ADMINISTRATION (NASA)

GEORGE C. MARSHALL SPACE FLIGHT CENTER (MSFC)

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION (JOFOC)

for Contract NNM13AA35C, Engineering Solutions and Prototyping (ESP), Delivery Order NNM14AA89D, Space Launch System (SLS) Spacecraft / Payload

Integration and Evolution (SPIE) Launch Vehicle Stage Adapter (LVSA)

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) Marshall Space Flight Center

(MSFC). The procuring agency is NASA and the contracting activity is MSFC.

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 an extension for a period of approximately two years to delivery order

(DO) number NNM14AA89D, Space Launch System (SLS) Spacecraft / Payload Integration and Evolution (SPIE) Launch Vehicle Stage Adapter (LVSA), with Teledyne Brown

Engineering, Inc. (TBE). MSFC intends to extend the period of performance (PoP) of the existing DO from September 23, 2024, to September 30, 2026, to complete production of the third LVSA unit currently on contract, as well as to ultimately conclude LVSA activities for the SLS SPIE Element. As described below, additional options beyond September 30, 2026, if exercised, could extend the PoP of this DO through December 31, 2029.

The services to be provided include, but are not limited to: development or assessment, sustaining engineering (maintenance), field engineering changes, management, and disposal, as well as any ancillary activities associated with prior production efforts for previously procured LVSA flight hardware, including but not limited to, the operation and maintenance, verification and validation, certification, transportation to designated location, and all ground support equipment. This action will also include pre- and post-flight analysis support for the remaining two unflown LVSA units.

LVSA is a result of the Engineering Solutions and Prototyping (ESP) contracting solution, the purpose of which was to obtain end-item deliverables from near-site MSFC sources.

LVSA itself was not the sole engineering purpose behind ESP. Instead, multiple ESP contractors were to provide various engineering solutions and products for design, development, test, evaluation, operations, and training in support of MSFC's flight projects, human and robotic exploration, science and technology development, future programs/projects, and other MSFC responsibilities that had similar needs. The ESP contracts were to provide MSFC with an avenue to obtain deliverables at various stages in their life cycles as defined in NASA Space Flight Program and Project Management

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Requirements (NPR 7120.5) and NASA Research and Technology Program and Project

Management Requirements (NPR 7120.8).

By first competitively establishing the ESP contracts, NASA's goal was to award three to five indefinite-delivery, indefinite-quantity (IDIQ) contracts in response to the ESP solicitation, which was issued in 2012. The selected contractors were to provide all necessary management, personnel, facilities, equipment, materials and supplies (not otherwise provided by the Government) to deliver a variety of products broadly defined in each ESP contract’s

Performance Work Statement (PWS). Work was to be more specifically described in each

DO, which would be competed among the selected ESP contractors, with each DO defining specific end-item deliverables. The IDIQ contracts were each to have a five-year ordering period, and were to be performance-based, with either a cost-plus-fixed-fee (CPFF) or CPFF-less-deductions IDIQ arrangement.

Of the six proposals received, the ESP solicitation resulted in a total of three different ESP

IDIQ contract awards in 2013, specifically NNM13AA34C with Radiance Technologies, Inc.; NNM13AA35C with TBE; and NNM13AA36C with Wyle Laboratories, Inc. (later named KBR Wyle Services, LLC). LVSA was one of multiple engineering efforts competed among the three ESP contractors, and was awarded to TBE on January 31, 2014, as DO#

NNM14AA89D. The DO included production, sustaining engineering, operation and maintenance, verification and validation, certification, transportation to designated location, all ground support equipment for LVSA units supporting SLS Flights 1 through 3 (currently termed Artemis missions I through III), as well as pre- and post-flight analysis.

During the ensuing years under DO# NNM14AA89D, TBE has previously and successfully completed the LVSA design, development, test, and evaluation (DDT&E) process, to include the fabrication of a Structural Test Article (STA) to support the SPIE Integrated Structural

Test. Following this, TBE completed production and supported delivery of the first LVSA flight unit to Kennedy Space Center (KSC), after which the first flight unit was launched on

November 16, 2022, as part of the Artemis I mission, to include TBE completing its associated post-flight analysis in 2023. Delivery of the second LVSA flight unit was conditionally accepted by NASA on February 28, 2023, pending completion of the LVSA integrated assembly Acceptance Data Package (ADP) and successful closure of the LVSA

Artemis II Comprehensive Hardware Acceptance Review (HAR) Closure Plan. Completion of the HAR Closure Plan occurred on May 28, 2024, prior to the shipment of the second

LVSA flight unit to KSC for pre-flight processing. TBE is estimated to deliver the third and final LVSA flight unit procured under the existing DO in the coming months.

The initial LVSA DO PoP was February 1, 2014, through March 14, 2018. The PoP was subsequently authorized to be extended by the Deputy Assistant Administrator for Procurement on November 5, 2018, via a JOFOC, through an estimated date of December 31, 2023. Using the estimated date within the prior JOFOC authority, the LVSA DO's PoP was further extended through the current PoP end date of September 22, 2024. The instant JOFOC incorporates an increase in both the estimated value and the estimated PoP necessary to conclude efforts under this DO. While the technical scope of this DO is not being changed in relation to the delivery, launch, or post-flight scope aspects for three LVSA flight units, additional time is necessary to support remaining sustaining engineering activities that are now to be phased over a longer

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Milestones (i.e., launch manifest schedule) . Accordingly, this JOFOC will extend NNM14AA89D's PoP from September 23, 2024, through September 30, 2026, which aligns with through the launch of the Artemis III mission, including required LVSA post-flight analysis for Artemis III.

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):

Consistent with the NASA Authorization Act of 2010 (Public Law 111-267) and subsequent

Presidential direction, NASA established the SLS Program and initiated development of the

SLS vehicle. The SLS Program has developed a launch system architecture to meet an evolving capability strategy consistent with the reference missions and at a pace prescribed by the available budget. The SLS block upgrade strategy incrementally and practically increases performance of the launch vehicle one block at a time, while also accommodating the development and maturation of other Exploration Systems Development (ESD) systems.

The performance thresholds of launching 70 metric tons (mT), 105mT, and 130mT will be achieved respectively through development of the Block 1 configuration followed by the upgrade of Block 1 to Block 1B to Block 2. The LVSA is part of the evolvable configuration's initial Block 1 capability (i.e., currently limited for use through the Artemis

III mission).

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The SPIE Element role for SLS is management, planning, and integration of the spacecraft and payloads in support of NASA missions, which includes procurement and integration of the LVSA. The LVSA provides the physical interface between the Core Stage and the

Interim Cryogenic Propulsion Stage (ICPS) of SLS, while establishing a pass through for cable running between the launch vehicle and the Orion crew spacecraft, which will continue to be launched on SLS.

In anticipation of the forthcoming manifest , the PoP extension for

NNM14AA89D includes an initial nine month option period from October 1, 2026, through

June 30, 2027, in support of NASA 's public announcement on

January 9, 2024

If additional revisions to the SLS manifest are necessary past

, the anticipated immediate action to extend DO# NNM14AA89D's PoP will also include an additional five option periods of six months each. If all those options were to be exercised, the subject DO's PoP could be extended through December 31, 2029.

The current total value of this DO is $197,653,804. The total amount of cost/fee necessary to sustain performance of all LVSA flight units through September 30, 2026, in support of existing , is estimated to be . This represents an estimated increase of over the existing DO's current value.

Following the release of , the initial nine-month option period (i.e., Option 1) will be exercised, resulting in an additional estimated cost/fee increase of

, to further extend the DO from October 1, 2026, through June 30, 2027. This is expected to increase the total contract value to , or a cumulative increase of over the existing DO's current value

If all remaining options are exercised (i.e., Options 2 through 6), the total contract value necessary to sustain performance through December 31, 2029, is estimated to be

, which represents an estimated increase of over the existing DO's current value (note: this total estimated potential increase in value, combined with

$40,164,783 in separate ESP delivery orders under NNM13AA35C, would amount to an overall cumulative total of in ESP contract order value, leaving approximately remaining of the original TBE ESP contract's maximum quantity ordering value of $378,000,000).

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.

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NASA/MSFC intends to continue procuring remaining LVSA production and subsequent sustaining engineering support on a sole source basis from TBE. This decision is made pursuant to FAR 6.302-1(a)(2)(iii), which is the authority supporting the PoP extension with the original source (TBE) for the continued provision of highly specialized services (i.e., the continued production and sustainment of LVSA). Award to any other source (other than

TBE) would result in substantial duplication of cost to the Government that is not expected to be recovered through competition, and would result in unacceptable delays in fulfilling the agency's 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:

The use of 10 U.S.C. 3204(a)(1), as implemented by FAR 6.302-1(a)(2)(iii), to authorize the continued provision of highly specialized services for LVSA from TBE is appropriate. If performance with TBE is not able to continue under the subject DO, the Government will incur a substantial duplication of costs as well as experience unacceptable delays in fulfilling the agency's requirements. Also, as described in greater detail below, TBE has proprietary data and processes, specialized labor skills, and exclusive knowledge unique to LVSA production.

a) Substantial duplication of cost to the Government not expected to be recovered through competition

Introducing another LVSA contractor at this time would result in recreating established key vendor arrangements and working relationships with other SPIE prime contractors.

Combined with the continued TBE engineering and management support required for the

Artemis II and III missions, this would result in unacceptable technical delays and a substantial duplication of costs, which, as detailed below, would not be recovered through competition of a new contract:

• The value of utilizing a company with an existing contract with NASA, as well as using a firm that has already built all of the LVSA flight units, cannot be overstated.

The synergy of past production, as well as the irreplaceable knowledge of having supporting launch and post-flight activities for Artemis I, allow for the most efficient use of time necessary for planning and execution of both the sustaining and engineering efforts associated with LVSA flight units two and three, as well as meeting remaining Artemis II and III launch milestones.

• Design drawings and analyses would have to be transferred to a new contractor and incorporated into its configuration and data management (CDM) system if the drawings and analyses are available, in support of required sustaining engineering.

The basis for the analyses would not likely be provided by the existing contractor if a new contractor were selected due to proprietary data issues. An explicit example is the Frangible Joint Assembly/Pneumatic Actuation System (FJA/PAS), which has already been provided by a current SLS contractor to the Government, followed by the Government having furnished the FJA/PAS to TBE. The FJA/PAS has already been integrated by TBE into the last two LVSA flight units. For more than six

Rev.:4/2023 6 months, a great deal of coordination was required to communicate the FJA/PAS information from the assembly drawings and incorporate those details into the route sheets utilized by TBE. A new contractor would be required to quickly become fully knowledgeable of the existing FJA/PAS as part of the ongoing sustaining engineering associated with the remaining LVSA units, with the time necessary to replicate the information transfer becoming a significant added cost and schedule detriment to the

Government.

• The incumbent contractor team (TBE) uniquely understands the required sustaining engineering of this highly specialized and complex flight hardware, stemming from its experience gained during the production process and prior flight operations/maintenance associated with LVSA flight articles. This knowledge uniquely positions TBE to continue to substantially improve cost, technical, and schedule performance for remaining LVSA activities, which are necessary for successfully and affordably flying the Artemis II and III missions. TBE's LVSA knowledge and technical skills are not easily transferable. Thus, introduction of a new contractor at this time would require additional time and expense in order to mature an alternative source to the level of technical capability required for sustained LVSA flight hardware engineering.

b) Unacceptable delays in fulfilling the agency's requirements

Award to another source would cause unacceptable delays in meeting the Agency's requirements. The SLS Program manifest and schedule requirements associated with LVSA utilization would be negatively impacted in such a way that NASA would be unable to meet the Artemis II or III preparatory schedule events and launch dates as follows:

• KSC’s need date for processing is projected to be six months prior to a launch. The current launch manifest details an SLS Program Artemis II management launch readiness date of , a Common Exploration Space

Directorate (CESD) projected launch date of , an Artemis III management launch readiness date of , and a CESD projected launch date of . This would require a new contractor to support all processing associated with sustaining engineering at KSC, to include Artemis II launch readiness operations and maintenance, no later than , which has since passed. Award to another source would cause unacceptable delays to the launch schedule outlined above. These delays would derive from the procurement process, on/off ramping of new contractor personnel, the potential need for reworked activities, as well as efforts necessary to satisfy SLS technical and programmatic drivers. All of these activities could not be feasibly accomplished in time to satisfy an estimated date preceding Artemis III launch readiness.

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• Delays associated with the exchange of proprietary information and technical data between/among SLS prime contractors can impact schedule if the appropriate legal agreements are not in place. If the subject requirements were to be re-competed, in order to perform certain sustaining engineering efforts, new Nondisclosure

Agreements (NDAs) would be required with other SLS prime contractors that have produced hardware furnished by the Government to the LVSA prime contractor.

Establishing NDA agreements can be complicated and time consuming to execute, which would increase schedule risk.

• Should any sustaining engineering require operations or maintenance support in relation to LVSA flight unit’s two or three major assemblies, such as panels, rings, and quick disconnects supplied by TBE's current subcontractors or vendors, those same subcontractors or vendors would have a high probability for reuse based on a similar sole source relationship associated with each major assembly. A new LVSA prime contractor would need to establish new relationships and subcontracts with existing subcontractors and vendors, thereby impacting schedule and increasing costs, as well as adding unnecessary risk if any current subcontractor or vendor's contractual relationships could not be reestablished. The time needed for a new prime contractor to recreate contractual arrangements with existing subcontractors and vendors would most certainly cause unacceptable SLS launch manifest schedule delays.

• A new LVSA prime contractor would likely encounter a substantial learning curve associated with performing sustaining engineering of LVSA fight units manufactured by a different contractor. TBE has established an associated learning and process improvement curve for LVSA's sustaining engineering requirements, having already participated in the manufacture and launch of the first LVSA flight unit on Artemis I in November 2022, as well as being involved in the ongoing operations and maintenance associated with the second manufactured LVSA flight unit. A new contractor would not be familiar with the sustaining engineering learned by TBE via the building process of the final two flight units, nor would a new contractor likely have or be able to retain all of TBE's experienced personnel in order to retain this knowledge. The time required for a new contractor to become familiar with the existing processes and equipment adds further risk to maintaining an already challenging launch schedule relative to LVSA requirements.

• LVSA flight unit three is currently located at MSFC. TBE has already established a productive working relationship with the Exploration Ground Systems (EGS) office at KSC relative to LVSA hardware delivery, processing, and work shares towards the transfer of LVSA flight units to KSC. These efforts have included inviting EGS to witness LVSA internal access platform installation and checkout as established by

TBE. Re-establishment of these working relationships with a new contractor in support of LVSA flight three would likely impact both the efficiency and quality (i.e., problem reports) in hardware processing and transfer to EGS at KSC, thereby impacting key delivery and processing schedules. In turn, this would cause unacceptable SLS launch manifest schedule delays.

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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:

Pursuant to FAR Subpart 5.2 and NASA FAR Supplement (NFS) 1805.207(c)(15), a synopsis for this proposed contract action was published on the Government Point of Entry (GPE) website, SAM.gov, for a period of fifteen days, beginning August 14, 2024. Interested organizations were requested to submit their capabilities and qualifications to perform this effort to the identified point of contact not later than 4:30 p.m. local time on August 29, 2024, for the sole purpose of the Government evaluating and determining whether or not to conduct this procurement on a competitive basis. See paragraph 10 below for the results of this posting.

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 CO’s signature on this document indicates that it has been determined that the anticipated cost to the Government will be fair and reasonable. TBE will be required to submit a proposal to be evaluated and negotiated by the Government. Prior to execution of the DO extension, a proposal analysis will be performed. This analysis will ensure that the final agreed-to price for the contract action is fair and reasonable. Specifically, NASA subject matter experts will perform a quantitative technical evaluation, to include a detailed supporting cost analysis. The contractor will be required to propose updated labor rates for all extension years, with those rates to be evaluated against current labor market rates of a similar nature and experience level. Fee analysis will be performed in accordance with NFS

1815.404-470, via NASA Form 634, in order to perform the analysis necessary to develop fee objectives as required by NFS 1815.404-4(b)(i)(A).

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

From the onset, LVSA has been a unique DDT&E acquisition of space flight hardware, made solely to conform to NASA's SLS requirements. No contractor, other than TBE, has ever designed or developed LVSA hardware for NASA following award of DO# NNM14AA89D to TBE, nor has any other contractor ever had LVSA-developed hardware tested or evaluated in accordance or conjunction with NASA's SLS requirements. No other contractor has provided sustaining engineering to support TBE's purpose-built LVSA hardware, nor has any firm following the initial ESP competition of LVSA requirements expressed interest in

LVSA, as evidenced by all prior LVSA market research pertaining to public postings for the continuance of LVSA sole source efforts with TBE, to include the most immediate public posting of market research that concluded on August 29, 2024.

The resulting LVSA flight hardware under DO# NNM14AA89D that has been designed, developed, tested, and evaluated remains exclusive to a unique engineering solution proposed by TBE, as necessary to satisfy NASA's SLS LVSA requirements, with only NASA having ever procured LVSA hardware and its corresponding sustaining engineering needed to maintain this DDT&E hardware as produced and maintained by TBE.

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Based on this cumulative knowledge, additional LVSA-related market research activities are not being further conducted since no other potential source can meet SLS requirements without causing substantial duplication of costs and unacceptable schedule delays as noted earlier in this document.

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

FAR clause 52.244-5, Competition in Subcontracts, is included in the subject contract/DO.

Accordingly, TBE is required to select its subcontractors on a competitive basis to the maximum practical extent, consistent with the objectives and requirements of the contract.

There are no other facts supporting the use of other than full and open competition than previously stated.

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

As noted in paragraph 6, a synopsis for this immediate action was published on the GPE website (SAM.gov) for a period of fifteen days beginning August 14, 2024. Interested organizations were requested to submit their capabilities and qualifications not later than

August 29, 2024. In response to this synopsis posting, no firms requested consideration or expressed interest.

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:

Future requirements will be carefully considered for competition to the extent practicable as emerging needs become known to the Government. Furthermore, the Government is sensitive to the need to promote competition and therefore, will keep this as a goal while proceeding with this DO extension by minimizing, whenever practical, the use of proprietary data and by promoting future subcontract competition. At this time, there are no specific actions that the Agency plans to take to remove or overcome barriers to competition that do not require a significant investment of agency financial resources (which are currently unavailable), and time and effort as discussed above.