NASA JSC Award: Lease of AIrcraft Hangar Facilities at the El Paso International Airport

Status Report From: Johnson Space Center
Posted: Friday, February 22, 2013

Award - Feb 21, 2013

Justification and Approval - Posted on Feb 21, 2013

General Information

NAIS Posted Date: Feb 21, 2013
FedBizOpps Posted Date: Feb 21, 2013
Noncompetitive Action: Yes
Recovery and Reinvestment Act Action: No
Contract Award Date: Dec 13, 2013
Contract Award Number: NNJ13HA07C
Solicitation Number: NNJ13384713R
Contract Award Amount: 356000
Contractor: City of El Paso, DBA: El Paso International Airport, 6701 Convair Road, El Paso, TX 79925-1099
Contractor DUNS Number: 038801429
Classification Code: X -- Lease or rental of facilities
NAICS Code: 488119 - Other Airport Operations

Contracting Office Address

NASA - White Sands Test Facility, P.O. Box 20, Las Cruces, NM 88004-0020


Point of Contact

Name: David L. Tellez
Title: Contract Specialist
Phone: 575-524-5133
Fax: 575-524-6793

PURSUANT TO 10 U.S.C. 2304(c)(2)
Federal Acquisition Regulation (FAR) 6.302-2

1. This document is a justification for other than full and open competition prepared by the NASA Johnson Space Center (JSC) White Sands Test Facility (WSTF).

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 with the City of El Paso for the lease of two adjacent aircraft hangars and the surrounding ramp area within the El Paso International Airport (EPIA), El Paso, Texas. These two hangars house the depot maintenance and operations for the NASA T-38 aircraft. They also provide storage and maintenance of the NASA Grumman Gulfstream III aircraft and accommodate transient aircraft from JSC and other NASA facilities. The facilities also support the Super Guppy Transport (SGT) aircraft maintenance and operations and provide space for the storage and maintenance of the SGT cargo lift trailer (CLT) and shipping fixtures.

This procurement action is a follow on to contract NAS9-01177, with EPIA to provide these services. The contract value of NAS9-01177 is approximately $2.8M and was awarded in October 2001. Due to its strategic geographic location midway between JSC Houston and the west coast, El Paso, TX is the ideal choice as a base for the NASA Forward Operating Location (FOL). EPIA became the only location for NASA T-38 depot maintenance in 1991. NASA has leased hangar space at EPIA since 1984.

3. Description of the supplies or services required, include an estimated value: The lease includes 49,900 square feet (sf) of hangar space, of which 8,860 sf is administrative space, which includes: offices, meeting rooms, restrooms, break areas and parts storage areas. Approximately 395,000 sf of Hot Mix Asphalt Concrete (HMAC) ramp space and approximately 65,000 sf of reinforced concrete airplane pads are required to support the functions detailed above. One of the hangars must have a ceiling height of at least 35 ft to accommodate the NASA Grumman Gulfstream III aircraft. In addition, the EPIA provides two runways of lengths that maximize the performance capabilities for take-off and landing of T-38 aircraft. This increased performance capability provides for more potential flying days each year.

The proposed procurement contemplates a 2-year base contract with three 1-year options. The contract will be firm fixed price for the lease and will include a cost reimbursement line item to cover the monthly utilities expense. The estimated total cost for the lease is $1,380,000.00 (including options). The estimated total cost for utilities is $360,000.00. The estimated total contract value including rent and utilities is approximately $1,740,000.00.

4. Statutory authority permitting other than full and open competition:

The statutory authority for proceeding with this acquisition under other than full and open competition is 10 U.S.C. 2304(c)(1) as provided for by FAR 6.302-1(a)(2), which states that full and open competition need not be provided for when the supplies or services required by the agency are available from only one responsible source, and no other type of supplies or services will satisfy agency requirements. Furthermore, FAR 6.302-1(a)(2)(iii), states that full and open competition need not be provided when the services required by the agency may be deemed to be available from the original source in the case of a follow-on contract for the continued provision of highly specialized services when it is likely that competition would result in unacceptable delays in fulfilling the Agency's need.

5. A demonstration that the proposed contractor's unique qualifications or the nature of the acquisition requires use of the authority cited:

Due to its strategic geographic location midway between JSC Houston and the west coast, El Paso, TX is the ideal choice as a base for the NASA Forward Operating Location (FOL). EPIA became the only location for NASA T-38 depot maintenance in 1991. El Paso offers a major advantage over Ellington Field in Houston, TX due to the arid climate. The humidity in Houston requires costly corrosion control measures for the aircraft.

In the El Paso region, EPIA is the only known source with space available that meets the needs of the agency. A market survey indicates that no other airport or military facility in the region can support the agency's needs (see item 7 for additional information regarding the market survey).

NASA has leased hangar space at EPIA since 1984. During that time NASA has invested significantly in the facilities to make them suitable for the intended use. For example, facility upgrades have been performed to provide additional electrical power to NASA aircraft, to install a modified overhead folding hangar door for aircraft and support equipment access, and installation of a security system and fire protection and detection systems that comply with NASA standards. Major equipment such as an aircraft wash rack and a self-contained aircraft paint booth have been installed on the premises by NASA. The aircraft wash rack and aircraft paint booth would have to be removed, relocated and re-installed at an estimated cost of $300,000.

NASA has invested an estimated $1,000,000 in the facilities, including improvements, upgrades, and installation of fixtures and equipment. For another facility to support NASA's requirement, an existing hangar(s) would have to be significantly upgraded or a new hangar(s) would have to be built to NASA's specifications. Either option would result in a substantial duplication of cost and delay to the agency.

The timeline associated with the upgrade of an existing facility or the construction of a new hangar would likely be several months or longer. The subsequent move of the agency's equipment, tools and fixtures would cause an unacceptable delay to the critical maintenance and operations missions performed at the facility. The Facility Manager estimates that the time required for a move would delay the T-38 depot maintenance schedule by a minimum of 6 months to secure the necessary environmental and construction permits and an additional 6-12 months to have the facility in an operable state in accordance with both FAA and NASA regulations. This will result in an unacceptable backlog of and delay of the T-38 depot maintenance.

6. Description of the efforts made to ensure that offers are solicited from as many potential sources as practicable:

In accordance with FAR 5.2, Synopsis of Proposed Contract Actions, a synopsis of this action was posted on the NASA Acquisition Internet Service on July 16, 2012, to notify industry of this noncompetitive action. We do not anticipate receiving any responses.

7. Description of the market survey conducted, and the results, or a statement of the reasons a market survey was not conducted:

A market survey was conducted to determine if any other facilities in the region would meet the agency's requirements. At the EPIA only one other hangar could provide the minimum ceiling height of 35 feet required by NASA and that hangar is currently uninhabitable as per the City of El Paso code. The cost to acquire a certificate of occupancy for this hangar is cost prohibitive. EPIA officials estimate the cost to be no less than $6,000,000. EPIA plans to demolish the hangar so the area can be utilized for a different purpose in the future. All other hangars are geared for commercial general aviation uses such as pilot training, aircraft sales, charter services, aircraft storage, and general maintenance. A survey was also conducted of the other two airports in the area. The Las Cruces International Airport has only one city-owned hangar, which is leased to the New Mexico Air National Guard. They have land available for lease, and allow tenants to build facilities. However, the airport's longest runway is 7506 ft long. This does not meet the T-38 take-off and landing requirements. The Dona Ana County Airport at Santa Teresa has only one hangar with a 19-foot ceiling, which does not meet the requirement to house the NASA Grumman Gulfstream III aircraft. Holloman Air Force Base was also contacted, and no hangars are available for lease.

8. Other facts supporting the use of other than full and open competition: Because no other hangar space is available that can meet both the Government's geographical and technical requirements, it is difficult to capture the full cost impacts. Several modifications to any existing hangar space would need to be made. The modifications would include but are not limited to: disassembling the current paint booth, relocating and resurrecting the structure; construction associated with installing the paint booth at another location, cost associated with securing the necessary city/state/federal permits associated with the requirements; and constructing a wash rack concrete containment unit. A rough order magnitude estimate of these cumulative costs is approximately $1,000,000 in duplicate time, costs, and efforts. Other costs, which are more difficult to determine, include construction associated with increasing the ceiling height, or construction of a new facility, and extending the runway to meet the take-off and landing requirements of the T-38 aircraft.

9. Sources, if any, that expressed an interest in writing in the acquisition: No sources have expressed an interest in the acquisition.

10. The 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: The Government will continue to post notices to the FBO (Federal Business Opportunities) website and conduct market surveys of the airfields in the area to identify any other potential sources.

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