A16_Rawhide_Sole_Source_08232024_final_version_posting_Redacted_1.pdf

United States Department of the Interior

BUREAU OF LAND MANAGEMENT

https://www.blm.gov

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

Over $250,000

This document sets forth the justification and approval as required by FAR 6.301.

1. Identification of the Agency and the Contracting Activity:

The Department of the Interior, Bureau of Land Management (BLM), Carson City District, Stillwater Field Office Carson City, Nevada, requests the National Operations Center � Branch OC-660 located in Denver, Colorado, to contract with Broadbent and Associates Inc (Broadbent) on a sole source basis.

2. Nature and/or description of the action being approved:

This action is for the negotiation and award of a new sole source contract under FAR 6.302-2 with Broadbent as the contractor, utilizing a firm fixed price contract. Broadbent is a small business under NAICS code 562910, located at 8 West Pacific Ave, Henderson, Nevada 89015.

3. A description of the Supplies or Services required meeting the Agency�s needs, including the estimated value:

The requirement is for Broadbent to take over management of the Heap Leach Pad (HLP) solution from Rawhide Mine, which is partially located on BLM land. The period of performance is 6 months base with 6 one month option periods. The estimated value of the contract including options is approximately $9,500,000.00. Contractor will circulate fluids from the solution ponds back up on top of the HLP and actively enhance evaporation of fluids over the HLP to reduce solution inventory when draindown flows are high. When recirculation is no longer required to facilitate the disposal of excess flows, evaporation can be completed over the solution ponds. The active evaporation and reduction of fluid volumes can be terminated once flows are low enough that passive evaporation can occur within the double-lined solution ponds and solution does not overtop the ponds and leave containment. The process fluid draindown from the HLP and the evaporation in the ponds must remain at equilibrium and process fluid must not overflow the ponds.

Additional Information is detailed in the Statement of Work for the Reclamation of the Rawhide Mine.

4. An identification of the statutory authority permitting other than full and open competition:

41 U.S.C. 3304 (a)(2), unusual and compelling urgency as implemented by FAR 6.302-2.

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

Broadbent is uniquely qualified to provide these services to the BLM based upon the following information:

a) Background: On September 5, 2023, Nevada Division of Environmental Protection (NDEP) initiated the Environmental Mitigation, Assessment, and Remediation contract (EMAR) with Broadbent & Associates to actively manage the process fluids after Rawhide Mining LLC (RM) notified BLM they did not have sufficient funds to pay employees or the ability to manage fluids at the Rawhide Mine. The Denton Rawhide Mine is on both private and BLM owned land. Broadbent hired approximately 9 full-time RM employees at the mine for fluid management. Broadbent recirculated solution from the ponds up onto the Heap Leach Pad (HLP) and continued active evaporation on top of the HLP. Active evaporation had been achieved by the Broadbent staff using two forced evaporators built by RM and a combination of impact sprinklers and spray sprinklers. On February 5, 2024, fluid management and evaporation activities transitioned from Broadbent and Associates back to RM. RM rehired the original Rawhide Mine employees from Broadbent and managed and evaporated the process fluids at the mine site to date.

b) Current Situation: RM was in bankruptcy proceedings leading up to August 2023, and unfortunately did not pass through bankruptcy. Reorganization was not successful and the BLM was given 14 days via letter from the DOJ on 13 August 2024 to assume fluid management responsibilities for the Rawhide Mine. The BLM must urgently initiate this contract for fluid management to keep the dilute process solution on containment and avoid damage to the surrounding environment at the Rawhide Mine. Failure to initiate this contract quickly would likely result in the collection ponds overflowing and spilling draindown solution onto public lands. The draindown chemistry is not fully known, but likely exceeds the water quality standards for several elements, which would degrade waters of the state. In order to prevent these impacts, BLM must act quickly to initiate the fluid management contract.

c) Other environmental companies may have the capacity to accomplish fluid management, however due to the complexity of the fluid management system at Rawhide Mine and the lack of plans and drawings depicting onsite facility functions, another company would not have the prior experience and knowledge to take over fluid management from RM within the DOJ required 14-day timeframe. It is unlikely experienced RM personnel would be available for any other contractor to hire. The lack of knowledge onsite within a short period of time would likely result in process fluid leaving containment and causing an environmental spill.

The failure of the BLM to successfully get a contractor onsite would severely harm the environment and the BLM. Having previously managed the site, Broadbent knows the complexities of the existing fluid management system including pumps, piping, valves, and associated electrical equipment. The knowledge and experience Broadbent has is invaluable to the success of this contract. The facility and utilities at the Rawhide Mine are antiquated and a complete set of plans to demonstrate how to facilitate the process fluid management is not available. Broadbent demonstrated their ability to manage the HLP, recirculate draindown fluids, enhance evaporation, and continually maintain older equipment and facilities without incident for approximately 5 months, from September 2023 to February of 2024. Broadbent was able to hire experienced RM mine personnel to facilitate the fluid management and evaporation. This was one key to the success during that time period. The experienced mine personal were able to show Broadbent how to successfully operate the fluid management.

6. A description of efforts made to ensure that offers are solicited from as many potential sources as practicable, including whether a notice was or will be publicized as required by FAR Subpart 5.2 and, if not, which exception under FAR 5.202 applies:

Based on the imminent danger with the current contractor not passing through Bankruptcy, and the DOJ submitting the letter to the BLM on 13 August 2024 notifying of the 14-day window to award a contract for fluid management of the Denton Rawhide Mine, there is no way to solicit offers from other offerors due to the unusual and compelling urgency of this requirement, whereas the potential for no mine management of fluids and gases is imminent. There was not sufficient time to publicize this sole source action in accordance with FAR 5.203 based on the 14-day window to make an award. FAR 5.202(a)(2) applies based on the citation of FAR 6.302-2.

The BLM will post the Justification and Approval document immediately after award to SAM.gov in accordance with FAR 6.305.

7. A determination By the Contracting Officer that the anticipated cost to the Government will be fair and reasonable:

The Contracting Officer determines that the anticipated price will be fair and reasonable based on a complete analysis of the proposal submitted by Broadbent in accordance with FAR 15.404-1(b). By signing the justification, the Contracting Officer makes a determination that the costs/prices to the Government are expected to be fair and reasonable.

8. A description of the Market Research conducted (see FAR Part 10) and the results or a statement of the reason Market Research was not conducted:

Market Research was conducted leading up to the DOJ notice on 13 August 2024 to BLM to assume fluid management responsibilities within a very short 14-day period. Market Research procedures used included contacting knowledgeable individuals in Government in accordance with FAR 10.002(b)(2)(i). There are no drawings available of the Denton Rawhide Mine plumbing and electrical systems, and therefore only a contractor (Broadbent) that has managed the site previously would be able to complete the SOW requirements. The consequences of not having a contractor onsite to assume fluid management duties would result in severe harm to the government and the environment because the in process fluids will overtop the process ponds and create an environmental hazard on the public lands.

9. Any other facts supporting the use of Other Than Full and Open Competition, such as: (i) explanation of why technical data packages, specifications, engineering descriptions, statement of work, or purchase descriptions suitable for full and open competition have not been developed or are not available, (ii) When 6.302-1 is cited for follow-on acquisitions as described in 6.302-1(a)(2)(ii), an estimate of the cost to the Government that would be duplicated and how the estimate was derived., (iii) When 6.302-2 is cited, data, estimated cost, or other rationale as to the extent and nature of the harm to the Government.

There is uncertainty that the BLM would be able to obtain another source given the short timeframes required for fluid management. If awarding to any other source was possible, it would likely result in substantial additional costs to the government because they would likely subcontract to Broadbent and Associates and add their fees to complete the desired fluid management and evaporation of process fluids. Additionally, an alternative source would take longer to understand the complexities of the fluid management system and any delays could result in ponds overflowing and creating an environmental hazard.