80KSC026FA002_99500.4_JEFO_redacted.pdf

Rev.:5/2024

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

John F. Kennedy Space Center

Justification for an Exception to Fair Opportunity

Description of the action being approved:

This justification documents the basis for issuing an order under the Southeast Regional Architect and Engineer (SERAE) contract 80KSC022DA115, Merrick & Company (Merrick) using an exception to the Fair Opportunity process.

Description of the supplies or services required to meet the agency’s needs:

This action is a firm-fixed price task order for the Design of modifying the Vehicle Assembly Building (VAB) High Bay 3 (HB-3) for the Space Launch System (SLS) Phase 3, PCN 99500.4, 80KSC025FA027. The total estimated price of the proposed order is $1,049,125 and the estimated period of performance is 245 days from award.

Identification of Exception to Fair Opportunity:

FAR 16.505(b)(2)(i)(A), The agency need for the supplies or services is so urgent that providing a fair opportunity would result in unacceptable delays.

FAR 16.505(b)(2)(i)(B), Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized.

FAR 16.505(b)(2)(i)(C), The order must be issued on a sole-source basis in the interest of economy and efficiency because it is a logical follow-on to an order already issued under the contract, provided that all awardees were given a fair opportunity to be considered for the original order.

FAR 16.505(b)(2)(i)(D), It is necessary to place an order to satisfy a minimum guarantee.

FAR 16.505(b)(2)(i)(E), For orders exceeding the simplified acquisition threshold a statute expressly authorizes or requires that the purchase be made from a specified source.

FAR 16.505(b)(2)(i)(F) In accordance with section 1331 of Public Law 111-240 (15 U.S.C. 644(r)), contracting officers may, at their discretion, set aside orders for any of the small business concerns identified in 19.000(a)(3). When setting aside orders for small business concerns, the specific small business program eligibility requirements identified in part 19 apply.

Supporting Rationale:

The requirement for the study of the modification to the VAB for SLS Block 1B Crew, Phase 3, was issued through a Request for Technical Qualifications Narrative (TQN) to the nine (9) A&E firms under the multiple-award Southeast Regional Architect and Engineer (SERAE) contract; 80KSC022DA115 – BRPH Architects Engineers, Inc. (BRPH), 80KSC022DA115 – Merrick, 80KSC022DA116 – RS&H, Inc. (RS&H), 80KSC022DA117 – AECOM Technical Services, Inc. (AECOM), 80KSC022DA118 – TSGHD AF JV1 (TSGHD), 80KSC022DA119

– Jones, Edmunds & Associates, Inc (JE), 80KSC022DA120 – Johnson-McAdams Firm, P.A., THE (JMA), 80KSC022DA121 – Nelson Engineering Company (Nelson), and 80KSC022DA122 – Jacobs Engineering Group Inc. (Jacobs). Four (4) firms of the nine (9) submitted TQN narratives; BRPH, Merrick, RS&H, and TSGHD. Each TQN was evaluated, and Merrick was selected to provide a fee proposal on May 30, 2024.

Merrick has been involved in the design of this project from the beginning, initially awarded the structural study for all phases of the SLS back in September 2017 under the previous contracts NNK17CA04B/80KSC017F0076. In August 2024, Merrick was selected to provide a study for this same scope of work under the SERAE contract. This task order was awarded following a solicitation of TQNs from the SERAE firms, with Merrick ranking first among the TQN submitters. Their expertise and knowledge in this area has increased since that selection. Merrick is the only A&E firm with the specialized expertise to design the platforms to be installed, a key component of the overall construction work. Additionally, Merrick was involved in the evaluation of integrated models for the existing level B2 and C platforms, which are part of ongoing work to be designed and constructed for the Artemis IV launch.

Merrick is the only A&E firm with the expertise to provide engineering services during construction of these new platforms and insert structures. Additionally, Merrick is the engineering firm of record for the design, which includes unique elements not present in the previous 10 platforms.

Determination that the anticipated cost to the Government will be fair and reasonable:

The Government intends to obtain a fair and reasonable price by verifying the contractor utilized the labor hour prices established by the SERAE Advanced Pricing Rate Agreement (APRA) which were determined to be fair and reasonable and is part of Merrick’s base award, 80KSC022D0A115, awarded on September 10, 2021. The Government will perform a technical evaluation, and if necessary, negotiate the hours to be awarded as part of the task to obtain a fair and reasonable price in accordance with FAR 15.404-1. This will include math verifications, verifications to basis of estimate, historical hours by category awarded for same or similar efforts, and Independent Government Cost Estimate (IGCE) comparison or any other analysis the Government determines to be in its best interest.

Other Facts:

If NASA were to procure the design for modifying the VAB HB-3 for the SLS Phase 3 from a contractor other than Merrick, it would likely result in significant additional costs in both time and resources, as Merrick previously conducted the study on the VAB modification for SLS Block 1B Crew, Phase 3. Additionally, Merrick completed the original design under parent contract NNK17CA04B, task order 80KSC017F0076, in the amount of $5,488,805.47. Merrick’s specialized knowledge with the original design will result in labor cost savings, as they are the Engineer of Record (EOR). Choosing a new firm would require them to expend effort to review the design and engineer records, to the extent they are able to accept responsibility for the design and recertification. Furthermore, the design is highly specialized, making it challenging for another firm to replicate without a thorough understanding of the context in which it was design.

This process would add approximately 1,000 – 1,500 additional labor hours to the program, with an additional total cost for recertifying the design exceeding $200K. Additionally, it could impact the schedule by two to three months before the project can proceed.

A statement of the actions, if any, the agency may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for the supplies or services is made:

The CO will continue to examine the market in the future for alternative solutions or new sources before executing any subsequent acquisitions for the same requirements.

Design for Modify the Vehicle Assembly Building (VAB) High Bay 3 (HB-3) for the Space Launch System (SLS) Phase 3 PCN 99500.4, 80KSC025FA027

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

SIGNATURE PAGE

I certify that the requirements and technical data contained herein, and which form a basis for this justification are accurate and complete.

Bruce Kinnaird Technical Representative

I hereby certify that this justification is accurate and complete to the best of my knowledge and belief. Based on the content herein, it is determined there is substantial evidence to justify this exception to fair opportunity.

Stephen Crooks Contracting Officer

APPROVAL:

Based on the information provided in this justification, and as the approving official, I have determined that the exception at FAR 16.505(b)(2)(i)(C) applies to the order.

Edwin Martinez Competition Advocate Kennedy Space Center