WRAES Consolidation DF_Redacted.pdf

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

Determination and Findings (D&F) for Consolidation of Requirements for

Architect- Engineer services at Armstrong Flight Research Center and Ames Research Center

Findings

I. Requirement Specific Information

A. Proposed/New Requirement

1. Description of Services:

The purpose of this acquisition is to obtain Architect-Engineer (A-E) services at Armstrong Flight Research Center (AFRC) and Ames Research Center (ARC). This acquisition will hereafter be referred to as the National Aeronautics and Space Administration (NASA) West Regional A-E Services (WRAES). NASA Western Regional Areas of Operations are to include the AFRC, ARC, and other California NASA Centers and Federal Tenants at NASA facilities including the Jet Propulsion Laboratory (JPL) in Pasadena, CA; Goldstone Deep Space Communications Complex in Fort Irwin, CA; Edwards Air Force Base, CA (EAFB) and the NASA launch alliance at the Vandenberg Space Force Base in California. The Procurement Office at AFRC is the designated buying office for Architect-Engineer services. Pursuant to the enterprise procurement strategy at NASA FAR Supplement (NFS) Appendix A- 102.14, Architect-Engineering Services Not Associated with Environment Remediation, the Architect-Engineer requirement is for design and related services in support of general construction, alteration, modification, maintenance and repair, and new construction of buildings, facilities, and real property.

This acquisition meets the definition of consolidation as defined in FAR subpart 2.1, as it will combine two or more requirements for services that have been performed under two or more separate contracts, each of which was lower in cost than the total cost of the contract for which offers will be solicited.

2. Identify whether the requirement will be competed or sole source:

NASA AFRC intends to award up to seven (7) Indefinite Delivery Indefinite Quantity (IDIQ) contracts of which two (2) contracts will be reserved for small business awards in accordance with FAR 19.503 for this effort, using full and open competition. The A- E services are for A-E Civil, Structural, Mechanical, Electrical and Architectural to support NASA's regional missions of processing and launching spacecraft. All seven contracts will have five-year ordering periods with estimated values of not to exceed $75M and the total cumulative maximum amount of work to be ordered under all the IDIQ contracts that will not exceed $75M.

3. Solicitation Number, Contract Name, or Contract Number if known:

The requirement of the Architect-Engineer contracts will be procured under Solicitation No. 80AFRC23R0024.

4. Contract Vehicle (e.g. contract, task order, IDIQ contract):

Up to seven (7) Multiple-Award IDIQ Architect-Engineer contracts will be awarded;

two (2) of which will be reserved for small business awards in accordance with FAR

19.503 for this effort using full and open competition. Firm Fixed Price (FFP) task orders will be awarded.

5. Period of Performance (including all options):

The WRAES has an estimated award date of February 15, 2023. The period of performance (PoP) will be 5-year from the date of the contract award or $75M, whichever occurs first. FAR Clause 52.217-8 Option to Extend Services will be incorporated for a total potential PoP of 66 months.

6. Estimated Value of the New Requirement (including all options as well as annual value):

The estimated value of this Architect-Engineer services is $75M. The minimum ordering quantity/value is $1,000.00 and the maximum ordering quantity/ value is $75M. The average annual price of the contracts will be $15M.

B. Current/Former Requirement(s) i.e. the impacted contract(s)/those that will not be recompeted:

1. Contract Number(s):

80AFRC18D0009 - AFRC, Small Business Set-Aside, awarded to a small business.

80AFRC18D0011 - AFRC, Small Business Set-Aside, awarded to a small business.

80ARC017C0008 - ARC, Full and Open, awarded to a large business.

2. Current/Former Contract Value(s):

The initial 5-year period of performance of AFRC contracts 80AFRC18D0009 & 80AFRC18D0011 had a contract value of $15M each. The contract period of performance including options was August 1, 2017 through July 31, 2022. An additional six-months was negotiated under 52.217-8 Option to Extend Services with a period of performance of August 1, 2022 through January 1, 2023 which was included in the $15M.

The initial 5-year period of performance of the ARC contract had a total potential value of $93.1M. The contract period of performance was September 15, 2017 through September 14, 2022. An additional six-months was negotiated under 52.217-8 Option to Extend Services with a period of performance of September 15, 2022 through March 14, 2023 which increased the contract value to $102.7M.

3. Description of Services:

The current AFRC A-E contracts (Contracts No. 80AFRC18D0009 & 80AFRC18D0011) are IDIQ contracts with FFP Task Orders being performed by Development One, Inc., and Robert A. Fielden, Inc., both companies are small businesses that support the AFRC Facilities Engineering Branch (220). The services are to provide design and related services in support of general construction, alteration, modification, maintenance and repair, and new construction of buildings, facilities, and real property.

The current ARC A-E contract (Contract No. 80ARC017C0008) is a FFP Hybrid being performed by AECOM, which is a large business that supports the ARC Facilities Engineering Branch (JCE). The services are to provide facility master planning, facility architectural engineering design, facility construction management, energy and water conservation program management, facility space utilization assessments, real property management, and engineering services to NASA staff, NASA support contractors, and other federal and non-federal resident agencies.

Specifically, the current ARC A-E SOW breaks out these services into the following categories: General Facility Support (FFP), Facilities Engineering (FFP), Facilities Planning (FFP), Construction Management (CM), Construction Permitting and Inspection (FFP), Pressure Systems Analysis and Design (FFP), Additional Engineering Construction Specification Support (FFP), Engineering Configuration Management (ECM) (FFP), Electric Power Reliability Office (EPRO) (FFP), Special Tasks (FFP), Development Support Office (DSO) A/E & CM (previously Planetary Ventures (PV)) (CPFF), Other: IDIQ for NASA/MSFC (FFP).

C. Is this a contract/order as a result of a Product Service Line (PSL) in accordance with PIC 18-01?

Yes. If so, provide the PSL: Architect-Engineering Services Not Associated with Environment Remediation.

No.

II. Justification

A. Market research has been conducted (FAR 7.107-2(a)(1)).

Market research was conducted through a Sources Sought notification, assessment of small business contracting opportunities, and review of existing contracts. A Sources Sought was issued on February 24, 2022, requesting capability statements from all interested small and large businesses under NAICS Code 541310 and to inform vendors that NASA was researching the possibility of a contract vehicle for both AFRC and ARC. The small business size standard is

$11M/year. The sources sought included the requirements for AFRC and ARC. There were sixteen (16) timely responses to the sources sought (seven (7) large businesses and nine (9) small businesses), of which thirteen (13) responses were found to be fully or partially qualified to perform all aspects of the requirements. submitted one response as both firms are in the process of forming a joint venture for this requirement. Therefore, only sixteen timely submissions were recorded. A copy of the sources sought notice, and sources sought evaluation are attached to this D&F as supporting documentation.

The Contracting Officer also conducted market research by reviewing the other regional agency requirements, NASA Vendor Database (NVDB) search, Small Business Administration (SBA) Dynamic Small Business Search, and Vetbiz database search to see if the AFRC and ARC requirements could be utilized. The market research resulted were as follow:

The Contracting Officer reviewed the other 2 regional Product Service Line (PSL) contracts at Kennedy Space Center (KSC) and Glenn Research Center (GRC). The market research stated that AFRC and ARC requirements could not be included in either of regional contracts. Per my review of the list of vendors awarded on both of PSL contracts, only one company was deemed capable of meeting WRAES requirements since the A-E company was located within CA.

The Contracting Officer reviewed the NVDB (updated in April 2022) on June 17, 2022 to conduct a search. Out of the 873 registered vendors, which included SB, SDB, SDVOSB, 8a, WOSB, EDWOSB and VOSB, 8 listed NAICS (541310). Filters for specific words could not be set therefore, a search of each Capability Brief for the Architect-Engineer capability was conducted. None of the vendors briefs included the primary architect design functions.

Therefore, the Contracting Officer determined that none of the vendors could provide all services for the WRAES based on the information available on the NVDB.

A search of the SBA Dynamic Small Business Search database for registered California Small Businesses (SB) with the NAICS code 541310 and keyword of Architecture-Engineer was also conducted. This search identified a total of 60 small businesses. The Contracting Officer determined that some of the vendors found could potentially provide all services for the WRAES based on the information available on the SBA Dynamic Small Business Search database.

Additionally, a market research was conducted on VetBiz database with NAICS code 541310. A total of 107 small businesses were identified but only 6 small businesses were found capable of serving in California. The Contracting Officer determined that some of the vendors serving in California could potentially provide all services for the WRAES based on the information available on the VetBiz database. A copy of the market research results is attached to this D&F as supporting documentation.

Based on market research results, a full and open competition would provide the most benefit to NASA's WRAES requirement. Market research results concluded that there were not two or more small business concerns that would be fully capable of performing the requirement.

B. Quantify the specific benefits of the proposed consolidation/consolidated requirement by completing each of the following tasks (each task must be completed) (FAR 7.107-2(c)):

1. Compute the contract cost savings or reduction: $0

The current ARC contract is valued at $93M. However, there are non-A&E services on the current contract that, rather than be included in WRAES, will be split off from that contract and included in other contracts that are under more appropriate PSLs such as the Engineering Services PSL. The services that will not be included in WRAES are: General Facility Support, Pressure System Analysis and Design, Additional Engineering Construction Specification Support, Engineering Configuration Management, Support of Electric Power Reliability Office and Development Support Office A-E & CM and other IDIQ effort in support of NASA Marshall Space Flight Center (MSFC). The services under the current ARC contract that will be included in WRAES are: Facilities Engineering, Facilities Planning, Construction Management, Construction Permitting, Inspection, and Special Tasks.

Traditionally, contract savings are calculated using the actual cost of the current contracts minus the Independent Government Cost Estimate (IGCE) for the consolidated effort after having adjusted the current contract value for inflation so that both numbers cover the same time period.

However, since the scope of the effort is being modified, using the actual cost of the contract would introduce unrealized savings in the analysis because the two efforts being compared are not the same. Therefore, an assessment was performed identifying only the services to be included in the follow-on contract rather than all work on the current contracts.

Although ARC’s current contract is valued at $93M, ARC's Office of Procurement identified the cost of services that will be included on the WRAES contract as approximately $32M.

The ARC capacity projection of $42M is calculated based on the above $32M of actual cost of the services that will be included on the WRAES contracts, with a 28.6% of escalation rate, which totals approximately $42M. The escalation rate of 28.6% is based on the combination of the composite cost index data provided by the Bureau of Labor Statistics between calendar year (CY) 2017 - 2021 and the projected monetary targets established by the Federal Reserve for 2022 - 2024. Respectively, CY 2017, 2018, 2019, 2020, and 2021 recorded rates of 1.2%, 3.0% 2.7%, 2.6%, 4.4%. A rate 4.1% is forecasted for CY 2022, a rate of 3.9% is projected for CY 2023 and a rate of 3.7% is projected for CY 2024.

The current two AFRC contracts are valued at $15M each.

For AFRC, the capacity projection of $7M is a combination of previously awarded task orders of $5.4M plus escalation of $1.6M. The escalation rate is calculated using the same approach as the ARC escalation rate shown above.

The WRAES IGCE includes $16M for estimated task order awards for other NASA Centers and Federal Tenants at NASA facilities including the JPL in Pasadena, CA; Goldstone Deep Space Communications Complex in Fort Irwin, CA; EAFB in Edwards, CA and the NASA launch alliance at the Vandenberg Space Force Base, CA. This estimate was based on the technical representative’s personal knowledge and previous discussions with POCs at these locations during acquisition pre-planning phase. Currently, JPL and Goldstone Deep Space Communication Complex’s A-E services are covered by Caltech and the EAFB and Vandenberg Space Base have their own contracts to perform the A-E services. Although the A-E services performed at these locations are not covered by AFRC or ARC contracts, AFRC would like to include these locations on the WRAES contracts to provide flexibility and allow other NASA centers and federal tenants at these locations to issue their task orders in the future, if needed.

The IGCE of $75M is calculated using the capacity projection of $7M for AFRC, $42M for ARC (excludes requirements not in the WRAES), and $16M for other NASA Centers and Federal Tenants at NASA facilities including the JPL in Pasadena, CA; Goldstone Deep Space Communications Complex in Fort Irwin, CA; Edwards Air Force Base, CA and the NASA launch alliance at the Vandenberg Space Force Base in California. A $10M of buffer is added to the projected capacity of $65M to provide additional ceiling to cover any unknown projects in the next 5 years, which sums up to approximately $75M.

The total value of the work to be performed on the current/former contracts is $62M. Per the instruction, if the value of the proposed consolidated work is greater in value than the current/former work to be performed enter "0." The total value of the work to be performed on the current/former contracts is $62M, which is lower than the value of the proposed consolidated work of $75M. Therefore, a "$0" was inserted for this section.

2. Compute the administrative or personnel cost savings and provide the supporting documentation for this computation:

The administration cost savings were developed based on only having to utilize one Source Evaluation Board (SEB) instead of each center having their own SEB. The time and grade required by each SEB member was estimated based on personal experience with SEBs. The salary was calculated based on straight labor rates of 2022 General Schedule Pay Scale Tables for Step 4, CA, where the majority of the savings would be realized.

Annual Cost - AFRC SEB Rates

Position FTE Avg Grade FY22 Rate Total

Source Selection Authority 0.25 GS 15 $165,916 $41,479 Recorder/Contract Specialist 1.0 GS 13 $119,363 $119,363 Contracting Officer 0.75 GS 14 $141,052 $105,789 SEB Chair 0.5 GS 14 $141,052 $70,526 Voting Member (2) 0.5 GS 13 $119,363 $59,682 Policy Review 0.25 GS 13 $119,363 $29,841 Legal Review 0.25 GS 14 $141,052 $35,263 Procurement Officer (PO) Review 0.125 GS 15 $165,916 $20,740 Resources/Finance Support 0.25 GS 13 $119,363 $29,841 Information Technology Review (IT) 0.125 GS 13 $119,363 $14,920 Safety Review 0.125 GS 13 $119,363 $14,920 Small Business (SB) Specialist Review 0.25 GS 14 $150,691 $37,673 Total estimated SEB cost per year $580,037

Annual Costs - ARC SEB Rates Position FTE Avg Grade FY22 Rate Total Source Selection Authority 0.25 GS 15 $176,300 $44,075 Recorder/Contract Specialist 1.0 GS 13 $127,520 $127,520 Contracting Officer 0.75 GS 14 $150,691 $113,018 SEB Chair 0.5 GS 14 $150,691 $75,346 Voting Member (2) 0.5 GS 13 $127,520 $63,760 Policy Review 0.25 GS 14 $150,691 $37,673 Legal Review 0.25 GS 14 $150,691 $37,673 Procurement Officer (PO) Review 0.125 SES $203,170 $25,463 Resources/Finance Support 0.25 GS 13 $127,520 $31,880 Information Technology Review (IT) 0.125 GS 13 $127,520 $25,463 Safety Review 0.125 GS 13 $127,520 $25,463 Small Business (SB) Specialist Review 0.25 GS 14 $150,691 $37,673 Total estimated SEB cost per year $645,007

Estimated salary was calculated by using straight labor rates of 2022 General Schedule to successfully complete the SEB effort, the average grade level of the necessary resource, and the Office of Personnel Management (OPM) Salary tables Step 4 of the applicable grade for the Los Angeles - Long Beach area for AFRC and San Jose-San Francisco-Oakland area for ARC.

By consolidating the A-E contracts at AFRC and ARC, the cost of AFRC SEB $580,037 + the cost of ARC SEB $645,007 - the cost of AFRC SEB $580,037 = Total estimated SEB savings of $645,007. The potential savings realized could exceed over $645,007 by eliminating a second

SEB.

Additionally, it is anticipated that one Contracting Officer Representative (COR) will be appointed for the base contract, with Task Monitors being appointed to oversee the individual task orders. This will reduce the need to have two CORs as a result of this consolidation.

Calculations for cost savings identified below include escalation factors stated above.

Potential Government Administration Cost Savings (over 5-year performance)

Contracting Officer's Representative

(COR)

Overseeing performance of contractor, updating PWS (as needed), monitoring deliverables, solving problems, completing technical evaluations, completing CPARS evaluations

1.0 FTE

x

5 Years

GS 14

$150,691 x5

$753,455

The total estimated administrative or personnel cost savings for this requirement is $1,398,462.

This calculation is based on a SEB saving of $645,007 + COR saving of $753,455.

3. State the percentage of the cost savings or reduction:

The total percentage of the cost savings or reduction of this planned consolidation effort is 2%.

The result of cost saving percentage is based on the calculation of adding the total of the contract cost savings or reduction and the total of the administrative or personnel cost savings and dividing it by the estimated value of $75M.

Procurement Information Circular (PIC) 18-01, Strategic Approach to Acquisition Strategies by Institutional Product Service Lines, formalizes the Mission Support Future Architecture Program (MAP) initiative, which incorporates maximizing spending ability and eliminating redundant contracts for goods and services by synchronizing institutional requirements from across the Agency.

MAP is the agency-approved operating model that maintains a minimum set of capabilities to meet current and future mission needs, while encouraging divestment strategies for outdated and/or duplicative investments and reinforcing an enterprise approach for related services. MAP optimizes mission support services by moving toward an interdependent model through the following goals:

Transform the acquisition process through collaboration;

Share capabilities across Centers;

Realign structure (budget and people);

Establish a more efficient model;

Strategically evolve Center work and Agency objectives; and Enhance maximum participation by small business.

Through this consolidated effort, we are working to reduce the number of contracts across the agency that are providing the same services. Furthermore, the additional benefit of the planned consolidation of the requirement is to enhance performance and efficiency. Per FAR Part 16, each requirement will be competed at the task order level, NASA will provide each awardee a fair opportunity to be considered for task orders in order to best meet the Government's needs and NASA will be getting better pricing and better-quality products.

NASA management has determined that the implementation of MAP is critical to the agency’s mission success. This procurement is part of the implementation of MAP. In addition, NASA management has determined that this procurement strategy provides for maximum practical participation by small business. See sections E and F for additional impact details.

Check here if this requirement meets the substantial benefits definition/threshold as described at

FAR 7.107-2(d).

C. Describe the additional benefits of the planned consolidation, FAR 7.107-2(c).

All additional benefits are described in the paragraphs above.

D. Identify alternative contracting approaches that have been considered that would involve a lesser degree of consolidation (FAR 7.107-2(a)(2).

The consolidated requirement could be procured by soliciting each requirement individually through both centers. There are currently no agency-wide contracts that could support the requirement in its entirety. Use of General Services Administration (GSA) Federal Supply Schedules (FSS) were considered, however the market research showed that A-E services cannot be procured through GSA FSS.

With the reasons stated in section II. C, the extent of competition anticipated, and the objective to acquire efficient and effective A-E services, a consolidated, multiple-award IDIQ strategy was determined to provide the most optimal solution to meet AFRC and ARC requirements.

E. Describe the impacts of the acquisition strategy on contracting with small business concerns; be sure to specifically address:

There are currently three (3) contracts that will be affected by this consolidation. AFRC’s contracts were awarded to two small businesses and ARC's contract was awarded to a large business.

NASA AFRC intends to award up to seven (7) IDIQ contracts of which two (2) contracts will be reserved for small business awards in accordance with FAR 19.503 for this effort using a full and open competition. However, AFRC reserves the right to only make awards to other than small businesses if no small businesses are deemed technically qualified and no small businesses falls within the final selection range.

The annual amount that was previously obligated to small businesses under the current AFRC and ARC contracts (combined) was approximately $11M. AFRC obligated an average of $1M per year and ARC obligated an average of $10M per year.

Therefore, due to the two reserved contracts to small businesses, it is anticipated that approximately $20M ($4M annually) more will be obligated to small businesses under the WRAES contracts over the five-year period of performance than the current ARC and AFRC A- E contracts combined. Increases in price for the new requirement are anticipated with the updated requirements, and contract escalation over the next five-year period.

F. Select all of the steps taken to include small business concerns in the acquisition strategy for the planned consolidation. In addition to numbers 1 and 2 below, include any other steps taken.

Check all that apply below.

1. Incorporated recommended small business subcontracting goals in the draft and final request for proposal (RFP), in accordance with NPD 5000.2 Small Business Subcontracting Goals and NFS 1815.304(c)(4)(B).

2. Evaluation of offerors’ small business subcontracting commitment as a part of the evaluation criteria, NFS 1815.304(c)(4)(C).

3. Other steps taken to include small business concerns: The Contracting Officer requested the interested Large Business to submit suggested percentages of the work that could be subcontracted in the source sought notice. The responses were evaluated and incorporated into the small business subcontracting goals.

III. Determination

In accordance with the findings provided above, I determine that it is in the best interest of the Agency to consolidate the aforementioned requirements. This written determination demonstrates that this consolidation is necessary and justified in accordance with FAR 7.107-2(e).