NNM16577788R_Industry_Day.pdf

ED University 100 Series5/10/2016 1:18:44 PM 1

INDUSTRY BRIEFING

Safety and Mission Assurance Services (SMAS)

Draft Request for Proposal (DRFP)# NNM16577788R

May 11, 2016

♦ Introduction & Ground Rules Shawn Wallace

♦ MSFC SMA Steve Pearson

♦ Requirements & Functional Overview Shawn Wallace

♦ Procurement Overview Darlene Schmidt

♦ Pricing Overview Darlene Schmidt

♦ Key Topics Labor Relations Patrick Rasco Legal Considerations Kevin Love Small Business David Brock

♦ Site Tour Shawn Wallace

♦ Concluding Remarks Shawn Wallace

May 11, 2016 2

Agenda and Presenters

Safety and Mission Assurance Services

♦ Introductions

♦ Orientation (fire exits, restrooms, etc.)

♦ Purpose of the Industry Briefing:

Highlight (SMAS) requirements Highlight key topics of the Draft RFP Serve as an aid in preparation of proposals following release of the Final RFP

Welcome

Safety and Mission Assurance ServicesMay 11, 2016

♦ Turn off cell phones and no video/voice recording.

♦ The Government is recording the audio of the meeting for Government-only reference.

♦ Ensure that your visitor badge is visible at all times.

♦ Please confine your activity to Building 4203, Room 1201, cafeteria, and associated public areas (e.g. restrooms, lobby).

♦ Dial “911” in an emergency situation.

♦ While on-site, if using a cell-phone, please notify the operator that you are located at MSFC so that they can transfer the call to the appropriate response center.

Security Ground Rules

♦ Remarks and explanations at the Industry Briefing do not qualify the terms of the solicitation.

♦ Terms of the Solicitation and Performance Work Statement remain unchanged unless the Solicitation is amended in writing.

♦ The Industry Briefing charts and attendance list, including name/corporate affiliation for both the MSFC and the Stennis/MAF portions will be posted on FedBizOps: https://www.fbo.gov

♦ Comments and questions regarding this draft RFP shall be submitted in writing (Provision L.2) ♦ No oral questions will be addressed during presentation.

♦ Note cards provided at conference room entrance may be used to submit questions today.

Briefing Ground Rules https://www.fbo.gov/

♦ All questions/comments shall be in writing and received no later than 12:00 p.m. CDT on 19 May 2016 by:

NASA/Marshall Space Flight Center ATTN: Darlene Schmidt/PS52 Building 4203, Room B311

MSFC, AL 35812

or Darlene.L.Schmidt@nasa.gov

♦ An assessment of all comments and questions will be made by the Government.

♦ Incorporation of industry comments and questions in the Final RFP is at the discretion of the Government. Changes will be identified in the Final RFP change log.

Comments & Questions

Source Evaluation Board (SEB)

Safety and Mission Assurance Services

Source Selection Authority

Robin N. Henderson (Associate Center Director)

SEB

Shawn Wallace (Chairperson) Darlene Schmidt (Contracting Officer) Lou Ann Fikes (Member) Randy Wright (Member) Stacy Counts (Member) Coronica Maehew (Recorder) Al-Razaq Computing Services

SEB Advisors

Belinda Triplett (Procurement) Melinda Swenson (Procurement) James Casper (Procurement) Kevin Love (Legal) Deborah Stone (Pricing) Chiquita Goodloe-Suggs (Pricing) Kimberly D. Odonnell (Pricing) David Brock (Small Business) Patrick Rasco (Labor Relations)

MSFC SMA Overview

Steve Pearson Deputy Director, SMA

Safety and Mission Assurance Services 8May 11, 2016

MSFC Safety and Mission Assurance (SMA)

-- Mission -- To enable NASA’s success through proactive engagement of SMA expertise

-- Vision -- NASA success through safety and mission assurance excellence

Cross Cutting Objectives

• To provide an excellent, timely, and fully-engaged SMA workforce with the requisite skills and processes to optimize NASA mission success

• To recruit, develop, and retain Agency leading SMA expertise

• To develop and foster our SMA culture as the employer of choice Summary of Responsibilities

• Develop Center SMA policy, Implement SMA Tech Authority and Supports Office of Safety and Mission Assurance (OSMA) activities

• Implements SMA Council (SMAC) in support of the Center Management Council (CMC) process

• Conduct Independent Assessments and Supports NASA Engineering Safety Center (NESC) and NASA Safety Center (NSC)

• Discipline tools, processes, guidelines & analysis and Inspections and surveillance of in house test operations and at contractors

• Center wide training/mentoring for Continuous Risk Management (CRM) and SMA focal point for all phases of design, manufacturing and testing activities

• Supports and conducts Certification of Flight Readiness processes

9May 11, 2016

MSFC Organization

10May 11, 2016

The MSFC SMA Organization

Safety & Quality Department (QD10)

Pete Allen, Manager

- Quality Assurance Branch

- Industrial Safety Branch

Mission Systems Assurance & Technical Support Department (QD20)

Harry Dean, Manager

- Assessment & Assurance Branch

- Science & Space Systems Assurance Branch

Vehicle Systems Department (QD30)

Dave Spacek, Manager

- Boosters Branch

- Engines Branch

- Stages Branch

- Avionics & Software Branch

- Program Analysis & Systems Integration Branch

SLS SMA Program Office (QD02)

Rick Burt, CSO

SMA Business Resources Office (QD03)

J. Craig McArthur, Manager

SMA DIRECTORATE (QD01)

Steve Cash, Director

Steve Pearson, Deputy Director

MSFC Center Director Todd May

Nothing Happens at MSFC that SMA does not Touch

SLS Core Stage & Upper Stage

Michoud Assembly Facility New Orleans, LA

Space Launch System (SLS) Boosters

ATK Launch Systems Brigham City, Utah

Turbopumps for Core Stage & Upper Stage Engines Aerojet Rocketdyne West Palm Beach, FL

SLS Boosters KSC Booster Fabrication Facility

(BFF)

SLS Core Stage Engines (RS-25) & Upper Stage Engines (J-2X) Aerojet Rocketdyne Desoto, CA

Stennis Space Center SLS Liquid Engine Assembly Liquid Engine Testing

MSFC SMA Resident Management Offices (RMOs)

Marshall Space Flight Center

Boots on the Ground - Where the Hardware is Located. 12May 11, 2016

Interaction of Major SMA Disciplines

RELIABILITY AND

MAINTAINABILITY*

- R&M compliance, component criticality, retention, predictions

- FMEA, CIL, Reliability and Maintainability analysis, Limited Life List

QUALITY ASSURANCE AND

QUALITY

ENGINEERING*

- Hardware inspections and test monitoring

- Process Controls

- Verification Activities

SYSTEM SAFETY*

- Hazards, mitigations and residual risk

- Fault trees, hazard reports, safety data packages, PRA

* Includes software as well as hardware

Industrial Safety and Occupational Health

Application of engineering and management principles, criteria, and techniques to optimize safety and reduce risks within the constraints of operational effectiveness, time, and cost throughout all phases of the system life cycleProbability that a system can perform its intended function for a specified interval under stated conditions

Verifying compliance with technical requirements and critical characteristics to assure the product meets expectations.

Activities associated with ensuring the workplace is safe and free from hazardous conditions

Assures software development processes and products meet software safety, reliability and quality requirements throughout the life cycle.

SHE program, training, tracking OSHA metrics, Performs hazard analysis for MSFC facilities and test equipment, Monitor hazardous operations, critical lifts, etc. and Investigate close calls and mishaps

13May 11, 2016

We Function as “Producers” and “Assurers”

PRODUCERS

In-Line – SMA activities performed in direct support of the program/project/institution to ensure that the program/project/institution will achieve its objectives

ASSURERS

Assurance – making certain that specified activities performed by others are performed in accordance with specified requirements, quality standards and industry best practices

SMA is Involved Throughout the Entire Product Life Cycle.

• Flight Readiness Review (FRR)

• Certificate of Flight Readiness (CoFR)

• Independent Assessment

• Audits

• MRB

• Quality Inspections

• Statistical

Analysis/Probabilistic Risk Assessments

• SMA Readiness Reviews (SMARR)

• ALERTs

• Problem Reporting

• Limited Life Items

(LLI)

• Verification

• Change Review

• System Safety

Review Panel /Payload Safety Review Panel

(SSRP/PSRP)

• Configuration Audits

Post MissionMission

SMA Mission Cycle

• Refine S&MA Technical Requirements

• Preliminary Hazard Analysis

• Preliminary Failure Mode and Effects Analysis (FMEA)

• System Requirements Review (SRR)

• Define/ Develop S&MA Technical Requirements

• S&MA Resources

• Trade Studies

• MMT Support at KSC

• HOSC Console Support

• Contingency Teams

• Payload and ISS Operations Console Support

• Data Analysis

• Hardware Evaluation

• Anomaly Resolution

Launch

• Hazard Analysis

• FMEA

• Critical Items List

(CIL)

• PDR, CDR, …

• Limited Life Items

(LLI)

• Quality Inspections

• ALERTs

• Problem Reporting

• Test Monitoring

• Statistical Analysis

– Probabilistic Risk Assessment (PRA)

• Verification

• Audits

• MRB

• Manufacturing

Surveillance

• Change Review

• SSRP/PSRP

Concept

Key to Program/Project Success is Early and Sustained

S&MA Involvement in Life Cycle

15May 11, 2016

Requirements & Functional Overview

Safety and Mission Assurance Services 16

Shawn Wallace SEB Chair

♦ The SMAS Contractor will augment the Government SMA workforce in support of both programs/projects and institutional support activities, thru the use of IDIQ task orders, at the discretion of the Government.

♦ SMAS will provide the following services:

2.0 Contract Integration

• 2.1 Program Management

• 2.2 Cross-Cutting Support (IDIQ) Information Technology services included in previous contract reduced for this RFP

3.0 Program and Project Discipline (IDIQ)

• 3.1 System Safety Engineering

• 3.2 Reliability and Maintainability Engineering

• 3.3 Software Assurance

• 3.4 Quality Engineering

• 3.5 Quality Assurance

• 3.6 Independent Assessment

4.0 Institutional Discipline (IDIQ)

• 4.1 Industrial Safety Program

• 4.2 Pressure System expanded effort to this RFP

5.0 Phase-In and Phase-Out

• 5.1 Phase-In (CLIN-1)

• 5.2 Phase-Out (IDIQ)

Program Overview

MSFC Pressure System Program Overview PVS Examples

Test/Research Systems

Pressure Vessels Cross Country Distribution Systems

Tube Trailers

Air Compressors

• MSFC has one of the largest inventories of pressure systems and vessels in the Agency:

– 684 in-service (active) pressure vessels

– Hundreds of pressure systems installed at test facilities, research labs and fabrication/process areas

– Extensive site-wide distribution systems for high pressure air and nitrogen (i.e., cross country systems)

– Propulsion test area distribution systems for hydrogen and helium

– Over-the-road tankers and trailers

SMAS

PWS & WBS Structure

Safety and Mission Assurance Services

Reference: Draft RFP Attachment J-1, Performance Work Statement

1.0 Contract Scope

2.0 Contract Integration 3.0 Program and Project

Discipline 4.0 Institutional Discipline 5.0 Phase In and Phase

Out

3.1 System Safety Engineering

3.2 Reliability and

Maintainability Engineering

3.3 Software Assurance

3.4 Quality Engineering

3.5 Quality Assurance

3.6 Independent Assessment

2.1 Program Mgmt

2.2 Cross Cutting Support

4.1 Industrial Safety

4.2 Pressure Systems

5.1 Phase In

5.2 Phase Out

♦ The first month of the new SMAS contract (CLIN-1, Phase-In) will overlap with the last month of the incumbent contract.

Incumbent contractor will continue task order support to MSFC programs, projects, and institutional activities Incoming contractor will:

• Badge incoming employees and ensure necessary training.

• Utilize the Automated Task Order Management System (ATOMS) tool to respond to Government Task Order Requests (TORs) in preparation for assuming full support to MSFC programs, projects, and institutional activities upon conclusion of Phase-In (February 1, 2017)

• Develop and deliver DRDs as specified in the PWS and the Data Procurement Document (Attachment J-2).

Phase-In (PWS, Section 5.1)

♦ The Government will provide an automated task order management system (ATOMS) tool to plan, organize, direct, and control contract activities.

The Government will preload the ATOMS tool with task order requests prior to Contract Award and Phase-In.

♦ The Contractor shall provide an interface from the Contractor’s corporate accounting system to the ATOMS tool.

Data formats for exchange with ATOMS are defined in the RFP Bidder’s

Library (see Attachment L-9).

ATOMS (PWS 2.1.2)

Procurement Overview

Darlene Schmidt SEB Procurement Representative

Safety and Mission Assurance Services 22May 11, 2016

Background: The SMA contract NNM07AA74C awarded to Hernandez Engineering Incorporated (HEI) (currently Bastion Technologies Incorporated (BTI) as a Cost Plus Award Fee/Award Term Fee contract through a small business set aside competition on January 12, 2007.

The Government intends to make only one award to a Small Business as a result of this solicitation

North American Industry Classification System (NAICS) Code:

541712 Research and Development in the Physical, Engineering, and Life Sciences

Standard business size of 1,250 employees

Contracting Approach

♦ Contract is performance based, Indefinite Delivery Indefinite Quantity (IDIQ) contract with Cost Plus Award Fee (CPAF) Task Orders

♦ The contract will contain the following potential values for IDIQ requirements:

♦ Value remaining in IDIQ CLINs may be rolled over to subsequent contract option periods, if exercised, provided the total maximum quantity reflected is not exceeded over the life of the contract.

Type of Contract

Safety and Mission Assurance ServicesMay 11, 2016

CLIN Type Total Minimum Value Total Maximum Value

2 Base $10,000,000 $74,600,000 3 Option 1 $5,000,000 $33,600,000 4 Option 2 $5,000,000 $33,900,000 5 Option 3 $5,000,000 $30,600,000 6 Option 4 $5,000,000 $30,100,000 7 Option 5 $5,000,000 $31,300,000 8 Option 6 $5,000,000 $33,400,000

♦ Contract will include a two year base period and six one-year option periods as follows:

♦ Total potential contract Period of Performance not-to-exceed 8 years.

♦ The contract will also include a six month option to extend services clause (Reference Section I, 52.217-8, Option to Extend Services).

Period of Performance

Safety and Mission Assurance Services

Phase In (1 month) FFP January 1, 2017 through January 31, 2017

Base Period (2 Years) February 1, 2017 through December 31, 2018

Option Period 1 (1 Year) January 1, 2019 through December 31, 2019

Option Period 2 (1 Year) January 1, 2020 through December 31, 2020

Option Period 3 (1 Year) January 1, 2021 through December 31, 2021

Option Period 4 (1 Year) January 1, 2022 through December 31, 2022

Option Period 5 (1 Year) January 1, 2023 through December 31, 2023

Option Period 6 (1 Year) January 1, 2024 through December 31, 2024

Reference Clause F.2, MSFC 52.237-91 Place of Performance - Services:

The services performed under this contract shall primarily be performed at:

Marshall Space Flight Center (MSFC) Stennis Space Center (SSC) Michoud Assembly Facility (MAF) Booster Fabrication Facility (BFF) at Kennedy Space Center

(KSC)

Any other locations that may be approved in writing by the contracting officer.

Place of Performance

Enter Acquisition Name 26May 11, 2016

Proposal Submission Date (Provision L.14)

Safety and Mission Assurance Services 27

Volume Title Due Date

Local Time

I Mission Suitability Volume

July 15, 12:00 p.m.

CDT

I Stand-Alone Documents Including:

- DRD 1566MA-001, Management Plan

- RFP Compliance Matrix (L.17 (b))

II Past Performance Volume * n/a Attachment L-2 Form SC, Past Performance Interview/Questionnaire Forms

III Cost Volume III - Attachment L-3, Cost Form IDIQ

- Attachment L-4, Cost Forms Prime Offeror Only

- Attachment L-5, Pre-award Survey of Prospective Contractor Accounting System

- Attachment L-6, Job Description and Qualification Form (JD/Q)

IV Completed Model Contract, Signed SF33’s, including Section J (with Attachments J- 6, Schedule of Contract Rates, J-13, Organizational Conflict of Interest (OCI) Plan, and J-15 Management Plan) and Section K Certifications

* Past Performance Volume is requested 2 weeks prior (July 1, 2016). However, delivery is not required until the proposal due date (July 15, 2016).

Proposal Submission Page Limits (Provision L.15)

Safety and Mission Assurance Services 28

♦ Page Limitations:

Volume I – Mission Suitability 100 Pages

• Included DRD 1566MA-001, Management Plan and RFP Compliance Matrix (L.17 item c)

• Total does not include the transmittal letter (L.16 item b) Volume II – Past Performance 20 Pages Volume III – Cost Unlimited Volume IV – Completed Model Contract Unlimited Reference Provision L.15 Proposal Page Limitation for detailed instructions.

♦ The RFP should be carefully consulted for items which are excluded from the page count.

♦ Information that can be construed as belonging in another volume of the proposal but is submitted in an unlimited page limit volume will be counted against the page-limited volume.

Proposal Submission Page Limits (Provision L.15)

Safety and Mission Assurance Services 29

♦ The RFP defines specific requirements for font type, size, spacing, margins, and other formatting restrictions.

♦ Offerors are cautioned that any page containing text that does not meet requirement will not be evaluated by the Government (the entire page) and will be returned to the Offeror.

♦ This competitive negotiated acquisition will be conducted in accordance with FAR 15.3, Source Selection, and NASA FAR Supplement (NFS) 1815.3, Source Selection.

♦ A best value trade-off process, as described at FAR 15.101-1, Tradeoff Process, will be used in making the source selection. The Government will select the best overall offer, based upon the three evaluation factors.

♦ The evaluation factors are Mission Suitability, Past Performance and Cost. These factors, as described at NFS 1815.304-70, NASA Evaluation Factors, will be used to evaluate each proposal.

♦ While only the Mission Suitability Volume is numerically scored, in order to provide Offerors with an indication of the relative importance of the three factors, the following information is furnished in accordance with FAR 15.304(e): Mission Suitability, Past Performance and Cost are considered to be essentially equal to each other. Therefore, all evaluation factors other than cost, when combined, are significantly more important than cost.”

Evaluation Factors for Award (Excerpts from Provision M.4)

Mission Suitability (Excerpt from Provisions L.17 and M.5)

Safety and Mission Assurance Services

♦ Subfactor 1: Management Approach (MA) – 400 Points MA1: Teaming and Organizational Structure MA2: Management Systems MA3: Staffing Approach MA4: Contract Execution Risk Identification and Mitigation

♦ Subfactor 2: Technical Approach (TA) – 325 Points TA1: Phase-In TA2: Technical Requirements Compliance Approach TA3: Training and Certification TA4: Innovations

♦ Subfactor 3: Sample Task Order Scenarios (TO) – 275 Points TO1: Adequacy of Approach to Sample Task Order Requests TO2: Efficiencies

May 11, 2016

The order of topics discussed within each subfactor (e.g. Subfactor 1, Management Approach) are chosen for narrative purposes and do not reflect relative importance (i.e. MA1 is not more important than MA2, etc.).

Mission Suitability Sample Task Orders

Safety and Mission Assurance Services

♦ The Solicitation will use four (4) Sample Task Orders to further evaluate the Offeror’s approach.

Produce a Task Order Plan, in printed form.

Provide a Basis of Estimate (Attachment L-8) for each sample task order.

Additional information (e.g. sample FMEA/CIL worksheet) as indicated.

Past Performance (Provisions L.18 and M.6)

♦ Past Performance will be evaluated thru the Offeror’s narrative (Volume II), past performance surveys, and other information available to the Government.

♦ Up to six (6) reference contracts, at least (2) of which are from the Offeror (not proposed subcontractors) Performance occurred within the last five (5) years.

Contract performance more than five (5) years old will not be considered.

Performance of at least $5M/year for Offeror, For proposed subcontractors, past performance reference value of at least $750k per year or at least 50% of the proposed subcontract value for SMAS

33Safety and Mission Assurance ServicesMay 11, 2016

Cost (Provisions L.19 and M.7)

♦ The reasonableness and realism of the cost proposal will be evaluated to determine the probable cost of doing business.

♦ The Government will compute a value for each year of the contract utilizing the “Government Worksheet-IDIQ Cost Model” provided in Section M.

• The Offeror fully burdened, composite IDIQ labor rates applied to a Government predetermined hours for each labor category.

• The Offeror proposed burden rates will be applied to Government predetermined amounts for travel and miscellaneous ODC.

• The Offeror proposed Award Fee rate will be applied to the calculated labor and predetermined travel and miscellaneous ODC (unless offeror proposes no fee to travel and/or ODC)

♦ The proposed fixed-price CLIN-1 Phase-In cost will be provided by the Offeror separately, and will not be subject to probable cost adjustment.

34Safety and Mission Assurance ServicesMay 11, 2016

Procurement Schedule

Safety and Mission Assurance Services 35

ACTIVITY DATE

Draft RFP Released April 28, 2016 Industry Briefing May 11, 2016 Draft RFP Comments / Questions May 19, 2016, 12:00 p.m. CDT Release Final RFP June 6, 2016 Proposals Due July 15, 2016 Competitive Range Determination October 1, 2016 Source Selection / Contract Award December 31, 2016 Phase In Start / Contract Effective Date January 1, 2017

Note: All dates are subject to change and are to be used for planning purposes only.

May 11, 2016 36

Cost Overview

May 11, 2016 37

• Cost Volume must be a separate volume.

• Offeror submits a comprehensive proposal including all subcontractor proposals.

• Prospective subcontractor(s) may submit proprietary cost data directly to the Government.

• Offeror’s accounting system must be capable of identifying and segregating costs.

• Offeror shall explain in detail all pricing estimating techniques.

• Not to exceed escalation rates are provided in the RFP.

SMAS RFP

Section L.19 Volume III –Cost Proposal Instructions

May 11, 2016 38

• Offeror shall map its internal labor categories to the Contract Labor Categories (CLCs), Attachment L-3 provided in the RFP and provide a discussion of the rationale used in the mapping process.

• Offeror shall provide detailed discussion of the rationale used to develop the fully burdened composite rates.

• All proposed direct and indirect rates must be adequately supported.

• Offeror shall propose an overhead rate for contract management requirements that is to be applied across all task orders. Offeror shall provide a detailed analysis of the development of the contract management overhead rate.

• Offeror shall provide their proposed award fee rate.

SMAS RFP

May 11, 2016 39

As instructed in Section L – The Offeror and subcontractors must submit an EPM and an OPM

EPM – Excel Pricing Model

The government provided model for submission of the cost (Attachment L-3, Cost Forms IDIQ and L-4, Cost Forms Offeror Only)

OPM – Offeror’s Pricing Model

The Offeror’s pricing model generated from the Offeror’s Accounting System in a format in accordance with that Offeror’s customary practices.

SMAS RFP

May 11, 2016 40

Reminders:

The EPM contains linking among the spreadsheets. However, use of external links (source data not provided to NASA) of any kind is prohibited. The EPM and all its associated workbooks/files shall not be locked/protected or secured by passwords.

The Offeror shall not alter Cost Volume electronic spreadsheets file formats except for lengthening forms as appropriate or adjusting column widths, or adding additional columns or rows if necessary.

The hard copy data will be considered the official documentation in the event of any inconsistency between electronic data and hard copies.

It is the Offeror's responsibility to ensure that all data is properly accounted for in the cost proposal in order to ensure an accurate proposal.

SMAS RFP

May 11, 2016 41

L-3, Cost Forms IDIQ (completed by Offeror and all Subcontractors) workbook includes the following tabs :

Tab A – IDIQ Rate Development Tab B – Reserved Tab C – Overhead, G&A and Indirect Rates Calculation Tab D – Fringe Benefit Rate Calculation/Detail Tab E – Phase-In Form Tab F – Productive Hours per WYE Conversion Table Tab G – Cognizant Audit Office Form Tab H – Fringe Policy Questionnaire

These workbooks are linked to each other and these links should not be broken.

SMAS RFP

May 11, 2016 42

L-4, Cost Forms workbook includes the following tabs (cont.)

Completed by Offeror ONLY :

Tab I – Development of Adjusted Sub Fully Burdened Rates (SFBR) with Prime Offeror Burdens

Tab J – Composite IDIQ Rate Development Tab K – Summary of Proposed Composite IDIQ Rates by Contract Yr

These workbooks are linked to each other and these links should not be broken.

SMAS RFP

Key Topic - Labor Relations

Service Contract Labor Standards

Patrick Rasco Office of Center Operations, Labor Relations Director

Safety and Mission Assurance Services 43May 11, 2016

Service Contract Labor Standards

♦ Subpart 22.10-Service Contract Labor Standards (SCLS)

This subpart prescribes policies and procedures implementing the provisions of 41 U.S.C. chapter 67, Service Contract Labor Standards (formerly known as the Service Contract Act of 1965)

Key Topic - Labor Relations

Safety and Mission Support ServicesMay 11, 2016 http://uscode.house.gov/

Purpose and Intent of the original Service Contract Act of 1965

♦ To remove artificially low wages as a factor in the competition for Federal Service Contracts by requiring the payment of not less than locally prevailing wage rates and fringe benefits, or in certain cases, the wages and fringe benefits contained in the predecessor contractor’s collective bargaining agreements.

Key Topic - Labor Relations (cont.)

Definition of “Service Employee”

♦ Service Contract Labor Standards (SCLS) define a service employee as any person engaged in the performance of a covered Federal services contract…

♦ However, it exempts those employees that qualify as a bona fide Executive, Administrative, or Professional employee

Things to Consider …

♦ As a prospective contractor you are liable for the proper interpretation, application, implementation, and administration of the mandatory provisions of the SCLS

♦ You must take appropriate action when preparing your offer to ensure compliance with the SCLS and that your corporate policies are compliant with the spirit and intent of the law

♦ It is the Offerors' responsibility to work with represented employees to gain knowledge of existing CBAs and agreements

Mandatory Requirements

♦ Applies to contracts entered into by the United States or District of Columbia in excess of $2,500 for the furnishing of services through the use of “service employees” and mandates:

Timely payment of wages Posting Requirements Minimum Record Keeping

♦ Those outlined in the Department of Labor “Area” Wage

Determination (WD) Minimum wages based on job classification

• See the Directory of Occupations to ensure the proper classification of each service employee.

Minimum Health and Welfare Rate

• A minimum average of $4.27 per hour, computed on the basis of all hours worked by the service employees employed on the contract.

Minimum number of Vacation Days

• Based on years of continuous service in any capacity with the incumbent contractor and all predecessor contractors.

Minimum number of Paid Holidays

• 10 Paid Holidays per year.

• Does not require a “service employee” to work the day before or the day after a holiday to receive holiday pay.

– If any work is performed (by a service employee) in a work week in which a holiday falls, the employee is entitled to holiday pay.

♦ Requires the payment of health and welfare, vacation, and holiday pay to temporary and part-time employees

♦ Does not provide for premium rates of pay for overtime hours worked, but it does recognize other Federal laws that do require overtime pay:

The Fair Labor Standards Act.

Contract Work Hours and Safety Standards Act.

• Premium Pay is one-and-one-half (1½) times the employee’s basic hourly rate of pay for all time worked over 40 hours per week.

♦ Items that can not be counted as Health and Welfare for SCLS computation purposes:

Federal, State, and Local Taxes, Unemployment or Workers’

Compensation, Professional Insurance, Liability Insurance, etc.

The furnishing of Board and Lodging The furnishing of “facilities” or “transportation” Contributions to social functions Vacation Pay Holiday Pay

Job Description/Qualifications Form (RFP Attachment L-6)

Key Topic - Labor Relations (cont.)

May 11, 2016

TITLE

☐ MSFC

☐ Other

Company Job Title: Enter text here Solicitation Job Title: Enter text here SCLS Wage Determination Job Title: Enter text here SCLS Directory of Occupations Classification Number: Enter text here

DESCRIPTION Enter text here

QUALIFICATIONS Education: Enter text here

Experience: Enter text here

Instructions for Completing the JDQ Form

♦ TITLE

♦ There are two Job Description/Qualification (JD/Q) forms per page. One form is to be completed for each job title/classification. Offerors shall also segregate JDQs form subbitals by work location, if applicable.

♦ NOTICE: This applies to all proposing subcontractors as well) Company Job Title - Enter your company job title if different from the SCLS job title.

Solicitation Job title – Enter the job title identified in the solicitation.

Service Contract Labor Standards (SCLS) Wage Determination Job Title/Classification -

Enter the accurate SCLS job title/ classification plus the SCLS classification number from the SCLS Wage Determination.

♦ NOTE: Detailed position descriptions are contained in the SCLS Directory of Operations. For details see:s:

http://www.dol.gov/whd/regs/compliance/wage/SCADirV5/SCADirectVers5.pdf

Key Topic - Labor Relations (cont.)

http://www.dol.gov/whd/regs/compliance/wage/SCADirV5/SCADirectVers5.pdf

♦ TYPE

Exempt or non exempt will be indicated in pricing section.

Exempt - Those job classifications identified as exempt classifications.

Nonexempt – All job classifications other than those exempt

♦ SALARY / WAGE RANGES: will be indicated in pricing section.

For the specified job title/classification, enter the minimum and maximum annual pay in the corresponding space for Exempt Classifications or enter the minimum and maximum hourly pay in the corresponding space for Nonexempt Classifications.

Note: The minimum rate can never be lower than the Wage Determination minimum.

♦ HEALTH AND WELFARE [FRINGE BENEFITS ]:

Provide the exact average hourly cost of health and welfare for service employee

Instructions for Completing the JDQ Form

♦ NOTICE: The exact average hourly cost of fringe benefits for service (non-exempt) employees and shall not include the cost of vacation pay, holiday pay, liability insurance, state and Federal taxes, professional liability insurance, unemployment or workmen’s compensation insurance, etc.

♦ NOTE: The average hourly cost of fringe benefits must be computed separately for Exempt (those employees not covered by the SCA) and Nonexempt (those employees covered by the SCA) employees.

♦ NOTICE: The makes NO distinction between full-time, part-time, and temporary “service employees” in regards to the payment of fringe benefits, including vacation and holiday pay.

♦ DESCRIPTION

Briefly describe the duties performed under the specified job title/classification.

♦ QUALIFICATION REQUIREMENTS

Identify the education and experience requirements for an employee to qualify for the specified job title/classification

Instructions for Completing Attachment L-3

Please give appropriate attention to SCLS

♦ It is a critical part of this solicitation evaluation and successful contract performance.

♦ Failure to propose correctly can have serious consequences Union issues Inability of team members to perform

♦ There are sanctions for failure to comply with mandatory requirements If a contractor fails to comply with the mandatory requirements, the

Government may…

• Withhold from payments a sum adequate to pay back wages or fringe benefits due employees;

• Bring legal action against the contractor;

• Terminate contract and hold contractor liable for any resulting cost to

Government;

• Not award contracts to violators for 3 years.

Please remember…

♦ Work with your staff and subcontractors to ensure familiarity with SCLS requirements

♦ Pay special attention to completing JDQ Forms and Attachment L-3

♦ Ensure correct usage of WDs

Key Topic – Legal Considerations

Kevin Love Office of Chief Counsel, SEB Legal Advisor

Safety and Mission Assurance Services 58May 11, 2016

Key Topics – Organizational Conflicts

Organizational Conflicts: (2) Contract Clauses and (1) Solicitation Provision

♦ H.10 ORGANIZATIONAL CONFLICTS OF INTEREST (OCI)

The Organizational Conflict of Interest Plan and its obligations are hereby incorporated in the contract.

♦ H.11 DISCLOSURE OF ORGANIZATIONAL CONFLICT OF

INTEREST AFTER CONTRACT AWARD

If the Contractor identifies an actual or potential organizational conflict of interest that has not already been adequately disclosed and resolved, the Contractor shall make a prompt and full disclosure in writing to the Contracting Officer.

♦ L.7 NOTICE OF POTENTIAL ORGANIZATIONAL

CONFLICTS OF INTEREST (OCI)

Notice. The Contracting Officer has determined that this acquisition may give rise to an organizational conflict of interest. Accordingly, the attention of prospective Offerors is invited to FAR Subpart 9.5 --Organizational and Consultant Conflicts of Interest.

May 11, 2016 Safety and Mission Assurance Services

60Safety and Mission Assurance Services

Key Topics – Organizational Conflicts (cont.)

Description of Potential Conflict:

♦ Impaired Objectivity is created when a contractor‘s judgment and objectivity in performing the contract requirements may be impaired due to the fact that the substance of the contractor‘s performance has the potential to affect other interests of the contractor.

♦ The SMA function provides an assurance function that is organizationally independent from the performing organization.

The Government has identified the following existing contracts that perform work assessed by SMA. Potential conflicts could occur, with particular attention paid to the indicated sections of the referenced contract PWS on the next slide.

61Safety and Mission Assurance Services

Contract Contractor Contract

Number

PWS

Notes 1, 2 Potential Conflict Type

Potential SMAS Conflict

SMAS PWS

Note 1

Center Operation Support Services

(COSS)

URS Federal Technical Services

NNM08AA54C 1.2B, 1.2C, 1.4F, 1.4D,

3.2A1, 3.2A2, 3.2C4, 3.2C5, 3.2C6, 3.2D, 5, , 6.3B, 6.3C, 6.4A, 6.5B, 7.2B, 7.2C, 7.2D, 7.2E, 8.0, 9.0, 10.0, 11.0, 12.0, 13.0

Impaired Objectivity

Industrial Safety, Pressure Systems

4.1, 4.2

Marshall Engineering Technicians and Trades Support

(METTS)

Aerie Aerospace, LLC

NNM15AA19C 1.5, 1.12, 2.0 Impaired Objectivity

Quality Assurance, Industrial Safety, Pressure Systems

3.5, 4.1, 4.2

Engineering and Science Services and Skills Augmentation

(ESSSA)

Jacobs Technology, Inc.

NNM12AA41C 2.1.6, 2.1.7, 3.0 Impaired Objectivity

Documentation and Report Support, Program and Project Discipline Support

2.2.5, 3.1, 3.2, 3.3, 3.4, 3.5, 3.6

Synergy Achieving Consolidated Operations and Maintenance

(SACOM)

Syncom Space Services, LLC

NNS15AA01C 2.1, 3.1, 3.2, 3.4, 3.5, 3.6,

3.7, 4.1, 4.2, 4.4, 4.5, 4.6, 5.3, 6.0, 6.2

Impaired Objectivity

Industrial Safety, Pressure Systems

4.1, 4.2

Note 1: Sections identified include all subsections unless specifically excluded.

Note 2: Potential conflict only to the extent that PWS activities are designated for independent monitoring, analysis, or verification by SMA. These designations use terminology such as ‘quality sensitive’, ‘safety critical’ or other nomenclature.

♦ The Offeror shall identify its strategy for resolving each actual or potential OCI created for the Offeror by the requirements of the solicitation/contract (e.g., work at other NASA centers by the Offeror or an affiliate, access to highly sensitive information or decision-making processes associated with other NASA centers, assisting other companies in responding to NASA solicitation, etc.)

♦ Proposed resolutions to known conflicts may be discussed with the Contracting Officer prior to submitting a proposal.

♦ The Contracting Officer shall not award a contract until NASA determines any conflict of interest is reasonably resolved.

♦ The OCI plan will not be evaluated as part of mission suitability. However, before being eligible to receive an award, the Offeror shall submit an acceptable OCI plan that shall address the requirements listed in paragraph 15.3, Contents of DRD No. 1566MA-006, Organizational Conflicts of Interest Plan (including mitigation plans for any identified OCIs).

♦ The Government may communicate with any Offeror at any time during the evaluation process concerning its OCI plan.

May 11, 2016 Safety and Mission Assurance Services

Key Topic – Small Business

David Brock Office of Procurement, Small Business Specialist

Safety and Mission Assurance Services 63May 11, 2016

Ostensible Subcontract Rule

♦ An ostensible subcontractor is a subcontractor that:

Performs primary and vital requirements of a contract, or of an order under a multiple award schedule contract.

A subcontractor upon which the prime contractor is unusually reliant.

64Safety and Mission Assurance Services

Key Topic – Small Business

Ostensible Subcontract Rule Things to Consider

♦ If the Offeror proposes using subcontractors, the Offeror shall consider the following for compliance with the Small Business Administration’s (SBA) Ostensible Subcontractor Rule (reference 13 CFR 121.103):

1. Who will manage the contract?

2. Which party possesses background and expertise necessary for contract performance?

3. Which party pursued the contract?

4. The degree of collaboration in preparation and submission of this Proposal.

5. Whether there are discrete tasks to be performed by each teammate and/or subcontractor, or whether there is instead a co-mingling of personnel and resources.

6. Which party will perform the more complex and costly contract functions?

7. The relative amount of proposed work (annual dollar value) to be performed by each teammate and/or subcontractor.

8. The business size (number of employees and annual revenue) of each teammate and/or subcontractor.

9. Is a subcontractor the incumbent and ineligible to submit a proposal because it does not meet all the solicitation requirements (e.g. size standard, set aside type, etc.)?

10. Did the prime include subcontractor personnel in the proposed organizational structure, and did the prime propose the managerial staff of the incumbent in their proposal (all or some)?

65Safety and Mission Assurance Services

Key Topic – Small Business (cont.)

Site Tours

Concluding Remarks

Safety and Mission Assurance Services 66

Shawn Wallace SEB Chair

♦ Today – MSFC Limit of 2 people per company Board bus between 12:45 and 1:00 south/front of Building 4203 Visit

• Test Area

• Building 4619

• Building 4487

• Building 4705

Return to Building 4203 by ~ 3:30

♦ Friday May 13, 2016 – Please wear “closed toe shoes” Confirmed Attendees Only

MAF: 9:00 – 11:00

Stennis: 1:00 – 3:00

Site Tours

♦ The solicitation number for the Final RFP will be NNM16577788R.

♦ Offerors should monitor the FedBizOpps website for periodic updates.

♦ Remember to place your comments in the box located at the exit to conference room.

♦ Comments may be submitted via electronic mail to:

Darlene.L.Schmidt@nasa.gov no later than 19 May 2016 at 12:00 noon p.m.

CDT.

♦ As noted previously, Industry Briefing charts and a list of the companies attending the Briefing will also be posted on FedBizOpps.

♦ This information is preliminary and subject to change when the Final RFP is released.

Concluding Remarks

The NASA Marshall Space Flight Center would like to thank you for your interest and participation in this important acquisition.

You are welcome to eat lunch in our cafeteria, at the public food trucks located at the intersection of Martin and Rideout Road, or offsite.

Thank You

Industry Day Supplement

Draft RFP NNM16577788R

Industry Day Speaker’s Notes

MSFC SMA emphasizes cross-cutting support of multiple customers; scope may include up to 90 projects supported.

Support to Stennis Space Center is provided thru the MSFC contract, but historically < 20 people are located at SSC.

Note that “Occupational Health” and “Environmental” are not a part of SMA or the SMAS

Contract support; this support is often included in the “SHE” narrative (Safety, Health, and

Environment) emphasized by MSFC.

SLS is performing systems engineering in-house, to include in-house development of software by MSFC Engineering, so SMA plays a larger role in SW Assurance than would be typical for a prime contracted development.

Offerors should make sure all team members are familiar with SCA/SCLS requirements so that little issues do not add up to be big problems.

Offerors should be aware of requirements under SCA/SCLS for bi-weekly pay.

At award, there is a 10-day period to check to see if the Wage Determination has changed and to update as necessary.

As a general rule, annual salary is exempt from wage determination, but hourly is not exempt.

Offerors are encouraged to look at the RFP clauses regarding OCI with Offeror’s corporate attorneys. The Offeror knows much more about future plans for the company’s portfolio than does NASA and should consider these future plans when assessing any potential OCI.

MSFC Tours

Test Area - ~ 1:00 p.m.

o Bus tour of East and West Test Area at MSFC o Saw both historic and new-construction (SLS) sites o Much of the construction in this area has been delegated to the Army Corps of

Engineers, rather than direct NASA SMA responsibility o Overview of the type of propulsion and structural tests conducted/planned

Building 4619 – Load Test & Industrial Safety Overview - ~ 1:30 p.m.

o East high-bay - saw load test facility where the test teams are preparing to test 2 of the 4 major SLS structures using hydraulic systems to expose the structures to flight like loads to verify their structural strength in order to qualify them for flight.

o Structural strength testing is one of many types of hazardous activities that safety engineering supports. MSFC has some general industry type operations but the majority of the operations that we analyze are experimental or developmental in nature requiring our engineers to determine how the codes apply to each specific activity.

o We will utilize a large quantity of hydraulic fluid as part of that process. In our larger, outdoor stands, we will have the added complexity of working with cryogenic fluids while pushing and pulling on the propellant tanks to verify their structural worthiness. Our fire protection program is responsible for making sure that the facilities are designed and built to our NASA standards and national consensus codes, and that the right controls are in place to support the mission in a safe and effective manner.

o The Industrial Safety Engineering Team performs basic system safety analyses of hazardous ground operations. We identify the hazards associated with the operation, determine mitigation techniques to reduce the risks to personnel, facilities and equipment to acceptable levels.

o We also assure compliance with NASA, OSHA, and consensus code requirements.

o Types of activities that MSFC performs include: Solid rocket motor and liquid rocket engine testing, flammability and material testing in flammable or oxidizing environments, exotic propellant testing, manufacturing of large rocket components, additive manufacturing, explosives, radiation, simulated nuclear environments, etc.

o Developing new and novel methods of propulsion to further our reach into the universe. With this mission comes some very unique and complex fire protection challenges. We work with a lot of flammable materials, and our scientists and engineers are fond of combining flammable materials with oxidizers and setting them on fire. The challenge we face is to provide a safe working environment for our people and facilities while helping them achieve their very important mission.

o Provide detailed engineering surveys of existing and planned facilities. These surveys provide us with the information to make good, risk-informed decisions about how to spend limited resources.

o Develop and track mitigation plans including developing economic analysis and comprehensive risk evaluations.

o Collaborate with engineering design professionals, project engineers, and scientists to understand customer requirements and develop creative solutions to safety issues. These issues often fall outside the prescriptive code requirements, and they require a performance-based alternative design.

o Review submitted engineering and architectural plans, as well as test schematic drawings to aid in developing appropriate hazard controls.

o Inspect facilities in the field for general compliance to established fire codes, recording discrepancies, and tracking them through to resolution.

o Conduct origin and cause investigation for all fires that occur on the Center in accordance with NFPA 921.

o Conduct fire drills, and support emergency planning operations.

o Support the continuing education of the workforce (civil servant and contractors) on fire protection and fire prevention issues and foster a culture of safety across the Center.

Building 4487 – Electrical Manufacturing - ~ 2:00 p.m.

o Saw manufacturing area for electronic boards and boxes o Saw cable testing for refurbishment of assembly from Space Station Urine

Processor Assembly o Saw examples of traveler paperwork and inspection tags o NASA workforce relies on external training for electrical process certifications o Toured automated fab area for surface mount printed circuit assemblies and went over primary equipment used (stencil printer, pick & place, Sniper, Ersascope, vapor phase reflow oven, x-ray machine, and laser engraver).

o Toured electronic fab machine shop and went over primary equipment used (CNC mills and micro-mill, CNC lathe, manual machines).

Building 4708 – Mechanical Manufacturing - ~ 2:30 p.m.

o Saw cleanroom for precision assembly thru viewing windows o Saw large 7-axix milling machine used for Orion test mating adapter o Saw machine shop with multiple types of equipment (safety glasses provided to all tour attendees) o Saw SLS core Stage support ring being manufactured o Mentioned manufacturing capabilities in other buildings (plating facility, and friction stir welding)

MAF Tour (May 13, 9:00 a.m.)

Drove around and saw various buildings and docks

Explained tenant relationship with US Coast Guard, and various film production companies, as well as Orion Program and several commercial ventures

Visited “model room” to see scope/scale of MAF facility and trace history from airplane manufacture, thru Satern, Shuttle, Ares, and now SLS era.

Saw various large-scale manufacturing tools, test articles from SLS, and areas used by other tenants.

Various tenants and programs have different schedules o SLS support currently usually 6 days/week, but anticipating 7 days/week when in production o In the past have supported some 24/7 operations o Boeing vertical weld tool mentioned 1-year schedule challenge

Stennis Tour (May 13, 1:00 p.m.)

Center Overview video

Bus tour around Center showing o Commercial program test stands o A and B stands supporting SLS and other tests o Commercial tenants (Rolls Royce, Lockheed, etc.)

NASA SMA responsible for interfacing with tenants as NASA is responsible for Stennis

“Federal City”

Currently about 40% utilization is NAVY, 30% NASA

Stennis is an OSHA VPP Star certified program; Currently all on-sight contractors are also VPP Star certified.