89233124RNA000210 NA-113 FAR Part 6 JOFOC (Approved) 04-29-24.pdf

[Solicitation Number 89233124RNA000210, NA-113 ICF Targets, CUI//SP-POCURE] Page 1

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

NATIONAL NUCLEAR SECURITY ADMINISTRATION

OFFICE OF RESEARCH, DEVELOPMENT, TEST, AND EVALUATION (RDT&E) (NA-11)

EXPERIMENTAL SCIENCES (NA-113)

RESEARCH AND DEVELOPMENT AND FABRICATION OF INERTIAL CONFINEMENT

FUSION (ICF) TARGETS, COMPONENTS AND COMPONENT TECHNOLOGY

SOLICITATION NO.: 89233124RNA000210

March 20, 2024

I. AGENCY IDENTITY AND CONTRACTING ACTIVITY

The Office of Research, Development, Test, and Evaluation (RDT&E), Experimental Sciences (NA-113) of the U.S. Department of Energy (DOE), National Nuclear Security Administration (NNSA) plans to contract for research, development, engineering, and fabrication of Inertial Confinement Fusion (ICF) targets, components, and technologies by means of other than full and open competition. The contracting activity is the NNSA Headquarters Services Acquisition Branch (NA-PAS-314).

II. NATURE AND/OR DESCRIPTION OF THE ACTION BEING APPROVED

This document sets forth the justification and approval for an exception to full and open competition allowed under the Competition in Contracting Act (CICA) of 1984, as implemented by Federal Acquisition Regulation (FAR) 6.302-1 – Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. This new contract action is for a sole source cost plus fixed-fee (CPFF) contract with a five-year base period and one, five-year option period to “General Atomics” (hereinafter “GA”), to provide research, development, engineering, and fabrication of ICF targets, components, and technologies.

III. DESCRIPTION OF SUPPLIES AND/OR SERVICES

ICF capsule targets are complex, multi-component systems employed by various DOE programs for a multitude of high-energy-density (HED) experiments. The Office of RDT&E, Experimental Sciences (NA-113) is an important constituent of the agency’s Stockpile Stewardship Program (SSP), which enables the United States to maintain a safe, secure, and reliable stockpile without the need for underground nuclear tests (UGTs). ICF/HED experiments conducted at the DOE’s HED programs typically involve intense energy with fluxes. Under these conditions, the target material is driven to conditions of extreme densities, pressures, and temperatures comparable to those encountered in nuclear weapon events. Material behaviors under these conditions are investigated and analyzed to improve experimental, theoretical, and numerical methods. ICF target dimensions are typically several millimeters (mm) in diameter and can have shell thicknesses ranging from

[Solicitation Number 89233124RNA000210, NA-113 ICF Targets, CUI//SP-POCURE] Page 2 a few microns to mm; surfaces also vary according to specifications, which can include smooth, rippled, and random but well-quantified texture designs. Targets can also consist of multiple layers separated by gaps ranging from a few microns to mm, and can be manufactured from single, multiple, or composite materials (e.g., plastics, beryllium and uranium metals, alloys, low-density foams, and/or cryogenically cooled hydrogen and/or deuterium); these specifications are characterized to prescribed precisions while minimizing impurities to acceptable fractions. ICF target requirements are also directly connected to mission milestones and directives. Thus, many of the target components require short-term and/or long-term research and development (R&D) as well as innovative designs through engineering, or assembly development. Reliable fabrication and timely delivery of targets is essential for continuous and efficient HED program operations. Timely development is key to target fabrication, including continuous incorporation of innovative avenues, and increasing process efficiencies. In order to meet these requirements, the contractor must have access to highly specialized ICF target infrastructure such as: equipment, qualified personnel, R&D expertise, engineering, and manufacturing capability of ICF targets components. The scope of the current acquisition is to provide target fabrication support to the following NNSA HED programs: Lawrence Livermore National Laboratory (LLNL), Los Alamos National Laboratory (LANL), Sandia National Laboratories (SNL), University of Rochester Laboratory for Laser Energetics (UR/LLE), and U.S. Naval Research Laboratory

(NRL).

The estimated value of this acquisition is $490,426,395.00 over the entire, potential period of performance (inclusive of options).

IV. AUTHORITY

The statutory authority permitting other than full and open competition is 41 USC 3304(a)(1), as implemented by the Federal Acquisition Regulation (FAR) Subpart 6.302-1 entitled “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.”

V. APPLICATION OF AUTHORITY

The NNSA has a need for the fabrication of ICF components, components technology, and targets, made from the materials as specifically stated in the PWS (i.e., plastics, beryllium and uranium metals, alloys, low-density foams, and/or cryogenically cooled hydrogen and/or deuterium), as well as research and development (R&D) applicable to target fabrication. NNSA’s market research (see § VIII) identified that only one source, GA, is capable of providing ICF target fabrication and R&D.

GA is the only source that possesses the capabilities (i.e., personnel, equipment infrastructure, specific expertise) needed to meet the Government’s requirement at the quantity and quality level that is required. GA has the capability to fabricate targets made from the materials stated in the PWS, as well as the ability to start performing immediately upon contract award. Furthermore, over the past 10 years, GA has invested a substantial amount of money on internal capital, towards equipment, capital investments (e.g. U and

[Solicitation Number 89233124RNA000210, NA-113 ICF Targets, CUI//SP-POCURE] Page 3

Be fabrication facilities), in addition to in-house R&D applicable to target fabrication.

Relocation of such equipment and facilities is not feasible since it is owned by GA and the knowledge that they have gained through their in-house R&D is GA’s intellectual property.

Moreover, the required capability, if replicated elsewhere, would need to be re-established and verified, after years of planning, design, and construction, and the intellectual property acquired under a licensing agreement. Although this would be a cost to the contract, the consequences of potential program delays or discontinuity in ICF target production are of the highest concern. Thus, it is necessary for the contractor to possess the necessary equipment and staff to allow for timely contract execution and immediate high-level performance. For another company to obtain the same technical capability, would result in enormous additional expenses and time to the Government’s detriment. More importantly, ICF target production will likely be compromised between the decommission of government furnished equipment at the present facility and when capabilities are re-established by the new contractor. The Office of RTD&E expends approximately $250M per year in operating HED facilities. Any delays in the continuity of ICF target production would have severely damaging consequences to the overall mission.

NNSA’s efforts to identify additional sources (see, § VI) and market research (see, § VIII) did not reveal any other sources that could meet all of NNSA’s immediate needs.

VI. EFFORTS TO IDENTIFY ADDITIONAL SOURCES

NNSA has attempted to identify additional sources through multiple avenues, including:

1. A search conducted on March 1, 2024, in the Dynamic Small Business Search (DSBS) for all types of small business ownership and self-certifications. The search looked at NAICS 541715 for Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology) with a Small Business Size Standard of 1000 employees and the general nature of business as “Research & Development.” The search also looked at the keyword “Inertial Confinement Fusion Targets.” The search was unsuccessful in producing any small business leads, or market stakeholders.

2. In accordance with FAR Subpart 5.201, reviewed submissions provided by interested parties in response to a notice of proposed contract action (Reference Number 89233124RNA000210) posted on March 6, 2024. One vendor indicated that they were reviewing the requirements to offer the best possible solution;

however, the vendor is an authorized distributor of IT and industrial brands which is not applicable to this requirement. The second vendor, a musical instrument manufacturer, included its name on the Interested Vendors List of the notice; and

3. A Sources Sought Synopsis for Target Manufacturing Services published by Lawrence Livermore National Security, LLC (hereinafter “LLNS”) to the general public through SAM.Gov on December 5, 2023. The services sought by LLNS were very similar to those being sought by NNSA for ICF targets under solicitation 89233124RNA000210. A thorough evaluation of the submissions received was

[Solicitation Number 89233124RNA000210, NA-113 ICF Targets, CUI//SP-POCURE] Page 4 completed by LLNS to determine the degree to which the capability statement validated the Contractor’s ability to perform the requirements identified in the PWS for the ICF targets solicitation. Only GA was deemed capable of successfully performing all LLNS PWS requirements.

VII. DETERMINATION OF REASONABLENESS OF COST OR PRICE

It is the determination of the Contracting Officer that the anticipated costs will be fair and reasonable based on a price/cost analysis performed utilizing an Independent Government Cost Estimate (IGCE).

VIII. MARKET RESEARCH

As identified in § VI, NNSA undertook multiple approaches to determine the capabilities available in the marketplace, including: DSBS; reviewing submissions from vendors received in response to NNSA’s notice of proposed contract action; and a Sources Sought Synopsis on SAM.gov. The results of all market research efforts identified that only GA is capable of meeting NNSA’s immediate requirements.

IX. OTHER FACTS

None.

X. INTERESTED SOURCES

As stated in § VI, two specific sources responded to the notice of proposed contract action expressing interest in the requirement. One vendor indicated that they were reviewing the requirements to offer the best possible solution; however, the vendor is an authorized distributor of IT and industrial brands which is not applicable to this requirement. The second vendor, a musical instrument manufacturer, included its name on the Interested Vendors List of the notice However, neither vendor was determined to be capable of meeting NNSA’s immediate needs.

XI. STEPS TO FOSTER COMPETITION

NNSA maintains a commitment to ensuring competition when practicable, and, prior to making future procurement decisions related to this requirement, the program will continue to monitor and assess the state of the market in an attempt to identify other capable, responsible sources.

[Signature Page Follows]

[Solicitation Number 89233124RNA000210, NA-113 ICF Targets, CUI//SP-POCURE] Page 5

XII. CERTIFICATIONS

Acquisition Initiator/Technical Representative:

I certify that the facts and representations under my cognizance, which are included in this justification, and which form a basis for this justification, are complete and accurate.

Signature Date

Contracting Officer:

I certify that this justification is accurate and complete to the best of my knowledge and belief.

Senior Procurement Executive (over $75M):

I have reviewed this justification for other than full and open competition and find it to be accurate and complete to the best of my knowledge and belief. Since this JOFOC exceeds $75M, this review serves as approval.

4/22/2024

04/22/2024