Safety & Health Considerations in Accommodating Commercial Activties David Loyd, JSC Safety & Test Operations 2013 NASA Safety Directors & Occupational Health Managers Meeting March 28, 2013

Page No. 2 Commercial Considerations Keys to Safe Commercial Operations at NASA Centers Center leadership must commit to reduce risks to the NASA personnel, assets, or the public to the greatest extent practical. SMA must be flexible in how NASA’s specific requirements are applied. Determine the nature of work that can be accommodated safely in a given facility. Avoid circumstances that would allow two organizations working side- by-side to work to different sets of safety standards. Respect the commercial customer need to reduce the operational uncertainties as much as possible. Regulatory compliance should be a minimum, but NASA most likely will not be responsible for enforcement. Get involved early in accommodating commercial activities. Understand the unique industry language and practices. Be open to different risk management methodologies. Look to promote intent of requirements over format or delivery.

Page No. 3 Commercial Considerations A Model for Encouraging Commercial Products, Services & Markets SPACE ACT AGREEMENTS GRANTS CONTRACTS Product Maturity NASA supports research into new products and services NASA actively shares in operational development of new products and services NASA purchases commercial products and services as part of mature market

Page No. 4 Commercial Considerations SMA Requirements Specific to Buying Commercial For Grants NPR requires identification of special safety conditions, applicable OSHA requirements, and practices to be followed to control risks Safety provision is applied to performance involving NASA facilities, Government-Furnished Equipment, or hazardous or energetic materials or chemicals used that may pose a significant safety or health risk to the public, NASA employees, and contractor employees In addition, 14 CFR requires notification of accidents and hazards associated with grant performance If the grant involves flight hardware, the hazardous aspects, if any, of such hardware will be identified, in writing, by the recipient There are no specific quality provisions or special conditions applicable to grants

Page No. 5 Commercial Considerations SMA Requirements Specific to Buying Commercial For Space Act Agreements NAII requires that SAAs address liability and risk associated with potential damages to persons and property arising from activities under the SAA For SAAs covering high-risk activities, the SAA Partner must be insured to protect the Agency against resulting losses The SAA Partner must comply with all laws, regulations and government policies that affect or relate to the performance of the SAA. Special attention is given to safety, security, export control, and environmental regulations where violations may result in civil or criminal penalties. For domestic activities where there is the possibility of a serious accident or mission failure occurring, mishap and close call investigation requirements shall be included with liability and risk provisions

Page No. 6 Commercial Considerations SMA Requirements Specific to Buying Commercial For Streamlined Contract Solicitation and Evaluation (FAR Part 12) Commercial procurements may apply “streamlined” acquisition procedures Relative values of evaluation factors do not need to be defined Evaluation factors include: Technical Capability, Price, and Past Performance Technical capability may be evaluated by how well the proposed products meet the Government requirement instead of predetermined subfactors Some SMA-related provisions and clauses may be included in the contract NFS Safety and Health clauses apply NFS Material Inspection and Receiving Report Contracts for commercial items shall rely on contractors’ existing quality assurance systems. Any in-process inspection by the Government shall be conducted in a manner consistent with commercial practice Tailoring provisions permit the application of FAR , including application of “Higher Level Contract Quality Requirements” (FAR )

Page No. 7 Commercial Considerations Insight/Oversight Models for Commercial Partners Methods of achieving insight include: Document review Meeting participation Review of tests Compliance audits Insight provides a level of confidence to make an informed acceptance decision, without relying on frequent in-process controls and approvals (oversight) Illustration courtesy of Hale and Bauer 2010

Page No. 8 Commercial Considerations Lessons Learned: Effective Insight NASA Launch Services (NLS) Program Commercial launch services acquired using firm-fixed-price indefinite-delivery, indefinite-quantity contracts Civil servants resident in vendor facility Open access to design and production processes, problem reporting, and daily informal meetings Multiple vendor participants in NLS have kept launches on schedule and costs within budget Effective insight is key to success

Page No. 9 Commercial Considerations Lessons Learned: Low Demand DoD Evolved Expendable Launch Vehicle (EELV) Program Competition between two companies initially drove down anticipated cost When demand did not reach expectations, costs rose 77% The two companies merged, eliminating competition and forcing DoD to rely on a single provider Limited demand can stifle competition