3b. JOFOC - DOE TRU Waste Storage at WCS (Final).pdf

Justification for Exception to Fair Opportunity Procurement to Store Existing DOE TRU Waste Storage at WCS

UNITED STATES (U.S.) DEPARTMENT OF ENERGY (DOE)

OFFICE OF ENVIRONMENTAL MANAGEMENT (EM)

LOS ALAMOS (LA)

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY FOR

PROCUREMENT TO STORE DOE TRANSURANIC (TRU) WASTE AT WASTE

CONTROL SPECIALISTS LLC (WCS)

1. AGENCY IDENTIFICATION AND CONTRACTING ACTIVITY.

The DOE EM-LA Field Office (Contracting Activity) proposes to contract directly with Waste Control Specialists LLC (WCS) for the temporary storage of TRU or Greater-Than-Class-C (GTCC) waste in accordance with the sole source fair opportunity exemption at Federal Acquisition Regulation (FAR) 6.302-1(a)(2).

2. NATURE AND/OR DESCRIPTION OF THE ACQUISITION.

This procurement action is for a sole source task order to be issued against Basic Ordering Agreement (BOA) 89303321GEM000020, Nationwide Low-Level Mixed Low-Level Waste Treatment Services, for the continued storage of DOE LANL TRU waste already stored at the Contractor’s facility located in Andrews Texas. The procurement also includes actions to support loading for transport offsite by DOE. The contemplated task order type is indefinite quantity with fixed unit rates as was initially implemented when the waste was accepted for storage at WCS in 2014. Pursuant to FAR 16.103(d)(1), this task order type has been determined to be most appropriate.

3. DESCRIPTION OF SERVICES.

The services to be provided include technical and administrative services to store waste containers at WCS and support loading so that the waste can be transported to an offsite facility at the end of the storage period. The waste has been in storage at WCS since 2014.

DOE sent TRU mixed waste from DOE Los Alamos National Laboratory (LANL) to the WCS Site in Andrews County, Texas for temporary storage in April 2014. This action was intended to be a short-term step that would allow the waste to be shipped to WIPP when WIPP recovered from a radiological event and began accepting waste for disposal. However, the cause of the WIPP radiological event was later determined to be an exothermic reaction between organic materials and nitrate salts inside a LANL waste drum. Subsequent to the shipment of the LANL waste to the WCS Site, DOE determined that some of the waste at WCS was from the same population that produced the reactive event at WIPP, which prevented transfer of the LANL Waste at the WCS Site to WIPP as originally planned. Over the past 5 years, DOE has completed a number of studies and evaluations to confirm that the waste can be removed from WCS storage and transferred to WIPP. This procurement will provide required storage support prior to the transfer from the WCS site.

This procurement is applicable only to the TRU waste containers in storage since 2014, and does not involve any onsite treatment or disposal of the waste at the WCS site. The estimated value of the resulting task order is not expected to exceed $22,000,000.

4. EXCEPTION TO FAIR OPPORTUNITY/STATUTORY AUTHORITY.

The authority for this justification for an exception to fair opportunity is FAR 6.302-1(a)(2), only one awardee capable of providing the services. The statutory authority that permits other than full and open competition is 10 U.S.C. 2304(c)(1), Only One Responsible Source.

Pursuant to 10 U.S.C. 2304(c)(1), the head of an agency may use procedures other than competitive procedures only when the property or services needed by the agency are available from only one responsible source or only from a limited number of responsible sources and no other type of property or services will satisfy the needs of the agency.

5. UNIQUE QUALIFICATIONS.

The TRU waste currently at the WCS Facility is in accordance with license and permit requirements as stipulated by the Texas Council for Environmental Quality (TCEQ) in collaboration with the US Nuclear Regulatory Commission (NRC) and the US Environmental Protection Agency (EPA). As such, the only organization that can be authorized to accomplish continued storage and loading support is the owner and licensee for nuclear operations at the facility. As the radioactive materials license holder for the WCS site, there is no other organization or company that can perform operations at the site in accordance with the TCEQ radioactive materials license rules (Title 25 of the Texas Administrative Code), TCEQ License #R04100, and TCEQ Permit # HW-50358.

6. DETERMINATION OF FAIR AND REASONABLE COST.

As mentioned previously, the total estimated value of this requirement is approximately $22 million. The period of performance (POP) for this task order shall be twenty-four (24) months from the date of task order award. This task order will also have a one-year option period bringing the POP to (36) months plus 100 days. The 100 days is included in the event that there are unforeseeable delays in the removal of the waste from storage. An analysis of historical costs and trends under previous contract mechanisms for the storage of this waste and other like wastes will be used as a basis of determining fair and reasonable pricing.

Additionally, a detailed cost analysis and an audit of the elements of the storage cost will be completed. To further evaluate the proposed cost to determine fair and reasonable pricing, DOE will require certified cost or pricing data be submitted in accordance with FAR 15.406-

2. DOE will also complete a formal Independent Government Cost Estimate (IGCE) prior to receipt of the Contractor’s proposal.

Ultimately this requirement will be satisfied by issuing a task order against Basic Ordering Agreement (BOA) 89303321GEM000020. The task order will be structured as an indefinite quantity task order that utilizes fixed unit rates with a total Not to Exceed (NTE) dollar amount. Use of this task order type complies with the stated requirements of Section H.10, Task Ordering Procedures of the BOA, and as mentioned earlier, the work is within the scope of Section C.4.5, Ancillary Services, of the BOA. Utilizing fixed unit rates will allow DOE to shift cost, schedule and performance risk to the Contractor while also allowing DOE to reduce costs as temporarily stored waste is shipped off the WCS site for permanent disposal at the DOE WIPP facility. Establishing a NTE will further reduce DOE’s risk and establish a set known maximum payment under the task order.

7. OTHER FACTS SUPPORTING THE JUSTIFICATION.

Through ongoing Stakeholder interactions with regulatory agency representatives regarding disposition options for this waste, TCEQ has consistently maintained that this waste must be removed from the WCS site as originally planned. TCEQ has maintained that onsite processing or disposal will not be authorized for this waste and requested a plan and schedule for removal of the waste as a priority. DOE developed a plan for removal of the waste in concert with TCEQ and other stakeholders in 2019 and submitted a Project Plan to TCEQ in March 2020.

This procurement supports continued storage only until removal can be accomplished as defined in that plan.

8. STEPS TO FOSTER COMPETITION.

DOE does not intend to pursue additional or follow on services in connection with storage or loading support for transfer of this waste from the WCS site.

9. CERTIFICATION.

PROJECT OFFICE: I certify that any supporting data that is the responsibility of technical or requirements personnel (e.g., verifying the Government’s minimum needs or requirements or other rationale for an exception to fair opportunity) and which form a basis for the justification have been certified as accurate and complete.

Refer to “EMCBC Record of IR JOFOC.pdf” Document.

David Nickless Date

Director Office of Completion Project Delivery DOE EM-Los Alamos Field Office

CONTRACTING

OFFICER: I certify that this Justification is accurate and complete to the best of my knowledge and belief in accordance with FAR 16.505(b)(2)(B).

Kara Hetrick Date

Contracting Officer DOE EM-Los Alamos Field Office

CONCURRENCE: Refer to “EMCBC Record of IR JOFOC.pdf” Document.

Rachna Mehta Talwar Date

Attorney-Advisor EM Consolidated Business Center

Aaron Deckard Date Acting Procurement Director EM Consolidated Business Center

10. APPROVAL.

John Zimmerman Date Director EM Consolidated Business Center Competition Advocate