Rocket Motor Production Course

Justification for Other than Full and Open Competition 1. Nature and/or Description of Action The Defense Threat Reduction Agency (DTRA) contracting activity proposes to procure without using full and open competition an effort entitled, "Rocket Motor Production Course RMPC." 2. Description of the Supplies/Services Required This is a sole-source follow-on requirement currently provided by Alliant Techsystems (ATK) Launch Systems, Inc. DTRA has a requirement for trained arms control inspectors and escorts to accomplish its missions in support of treaties and agreements, specifically under the New Strategic Arms Reduction Treaty (NST). Rocket Motor Production Course (RMPC) training provides DTRA personnel with knowledge and skills to implement the treaty between the U.S. and the former Soviet Union countries for further reduction and limitation of strategic offensive arms covered under the NST. NST inspectors and escorts conduct inspection activities involving solid-fueled missiles. The RMPC is a unique solid rocket motor and basic missile operations training program that supports and familiarizes the NST inspectors and escorts in the areas of orientation and production of solid fuel rocket motor fundamentals for strategic systems; operational readiness and propulsion capabilities; and observing and touring of the solid fuel rocket production and assembly facility for strategic systems, which is a crucial part of the training requirement. This action will result in a sole-source Firm-Fixed Price contract with an estimated value of $400,000. The base period of performance will be twelve months with four twelve-month option periods. 3. Statutory Authority The statutory authority for this non-competitive action is 10 United States Code (U.SC.) 2304(c)(1) or 41 U.S.C. 253(c)(1), as implemented by FAR 6.302-1, Only One Responsible Source. 4. Applicability of Authority ATK has performed the required task over the past ten years. To further accomplish the necessary tasks under NST, the Government determined that ATK is the only company that is familiar with the treaty regulations and requirements under NST, and also possesses the solid fuel rocket production and assembly facility for strategic systems, which is a crucial part of the training requirement. Observing and touring of solid fuel rocket production facility for strategic systems is vital in providing full understanding of concepts presented in the classroom by enabling RMPC students to witness the actual production and assembly of the high level solid fuel rocket booster for strategic systems. The students will be observing and touring ATK's Missile Products Division at the Magna, UT site. ATK has in-house qualified engineering personnel who have experience in the Strategic Arms Reduction Treaty (START) and NST inspections and will share the realities of "real world inspection" information with the students. The trained students will eventually serve in roles as RMPC inspectors, escorts, and interpreters during future NST inspection missions. Additionally, after the end of the cold war, the need for solid fuel rocket production for strategic systems has decreased and several of the existing rocket motor production companies have merged. For example, both Pratt & Whitney Space Propulsion and Northrop Grumman had been partnered with ATK Launch Systems in the solid fuel rocket booster business for strategic systems. However, both Pratt & Whitney Space Propulsion and Northrop Grumman departed from the solid fuel rocket motor business for strategic systems in 2004 after transitioning all work content to ATK. Since that time, ATK has been the only company still producing solid fuel rocket boosters for strategic systems covered under the previous START Treaty and currently under NST. No other contractor possesses the requisite experience, knowledge, and production and assembly facility to adequately fulfill the requirements for the proposed contract. An additional source, assuming it has the experienced personnel to provide training, will not be able to provide the observing and touring of the high level solid fuel rocket booster production and assembly process for strategic systems, which will result in a significant risk to the treaty requirements. 5. Effort to Solicit Potential Sources A notice of intent to award a sole-source contract on FedBizOpps was posted on July 14, 2011 soliciting responses from potential offerors. In addition, the Program Manager (PM) has researched various internal sources such as DTRA small business vendor mall and external commercial and Government sources such as www.yellow.com, and GSA Schedule to identify potential sources. 6. Fair and Reasonable Costs The anticipated price of this contract action to the Government will be determined to be fair and reasonable based on historical data from previous contracts and input from the PM's price information for training via the Salary.Com, GSA Schedule, and Monthly Labor Review. 7. Market Research A market survey performed on FedBizOpps in July 2011 did not reveal any company that would be able to meet the requirement. The PM's internal and external researches on suitable sources also did not identify potential companies. 8. Other Facts It is difficult to estimate the cost of establishing a solid fuel rocket motor production facility for strategic systems that is in a full operation. Because ATK is the only one that can provide the required efforts, the PM requested ATK provide assistance in estimating the value of the current production facility at Magna, UT utilized by the Missile Products Division. The ATK point of contact advised the PM to consult public financial information available in the ATK 2011 Annual Report to Stock Holders. Research of portions of that document provided an overall estimated value of the fully running facility at Magna, UT as being approximately $2.4 billion. However, two divisions jointly share the Magna, UT production and assembly areas of that facility. Unfortunately, there is no breakdown in the share holders report to indicate how much of the $2.4 billion is attributed to the Aerospace Systems Division and how much is dedicated to the Missile Products Division of those facility assets. 9. Interested Sources None. 10. Subsequent Actions Based on past experience, the Government anticipates a continued need for training as long as NST inspections are required. Technical Certification I certify that the data and information forming the basis for this justification are accurate and complete to the best of my knowledge and belief. _Redacted_ Project Manager Contracting Officer Certification I certify that this justification is accurate and complete to the best of my knowledge and belief. _Sae-Jin Yu__ 8/5/2011 Contracting Officer Date