ORISE Approved JOFOC.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION (JOFOC)

IN ACCORDANCE WITH 41 U.S.C. §3304(a)(1)

AND FEDERAL ACQUISITION REGULATION (FAR) 6.302-1(a)(2)

1. Identification of the Agency and the Contracting Activity.

Agency: U.S. Department of Energy (DOE) Contracting Activity: Office of Science (SC)

DOE SC intends for the Oak Ridge National Laboratory Site Office to conduct negotiations with Oak Ridge Associated Universities (ORAU) for a 12-month extension of DOE prime contract DE-SC0014664 for the management of the Oak Ridge Institute for Science and Education (ORISE). This document sets forth the JOFOC in awarding the extension allowed under the Competition in Contracting Act of 1984, Title VII of Public Law 98-369. The exercise of this exception is necessary since SC has concluded that the services required by the agency are available from only one responsible source.

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

This action is for the noncompetitive extension of prime contract DE-SC0014664 with ORAU for the period of October 1, 2025, through September 30, 2026.

SC intends that ORISE support scientific initiatives to develop the next generation of science, technology, engineering, and mathematics (STEM) professionals; promote quality of DOE-funded research through peer review; operate the Radiation Emergency Assistance Center/Training Site (REAC/TS); provide information on the long-term health outcomes of current and former workers; and to provide capabilities to independently assess environmental cleanup. The ORISE mission is to support these DOE initiatives through the following primary activities:

• STEM Workforce Development (WD);

• Scientific and Technical Resource Integration;

• Independent Environmental Assessment and Verification.

• Human Subject Health and Protection Surveillance; and

• REAC/TS operation;

3. A description of the supplies or services required to meet the agency's needs (including the estimated value).

The following describes the five primary activities supported by the ORISE contract:

WD for Teachers and Scientists Support, Management of and technical services supporting certain DOE STEM WD Programs at education levels from undergraduate through postgraduate, including faculty programs. Recruiting, on-boarding, administrative support, data collection, and continuous improvement of competitive programs are expected to be needed. Programs include:

o DOE Scholars;

o Community College Internship;

o Science Undergraduate Laboratory Internship;

o SC Graduate Student Research Program;

o Albert Einstein Distinguished Educator Fellowship;

o Various K-12 programs;

o Fusion Energy Sciences Postdoctoral Research Program;

o Minority Serving Institutions Partnership Program;

o Solar Energy Innovators Program (Energy Efficiency and Renewable Energy [EERE]);

o Arctic Advanced Manufacturing Innovator Program (EERE);

o Science and Technology Policy Fellowships (EERE);

o Marine and Hydrokinetic Graduate Student Research Program; and o EERE Postdoctoral Research Awards.

Peer and Merit Review Support.

o Support Services to Facilitate SC implementation of 10 CFR 605. (Program funding decisions in the SC are made based on the requirements of 10 CFR 605. This involves a thorough, consistent, and objective examination of applications based on pre-established criteria by persons who are independent of those submitting the applications and who are knowledgeable in the field of endeavor for which support is requested. SC generally applies 10 CFR 605 principles to the review of national laboratory work as well. This facilitates SC program offices’ reviews leading to the responsible federal officials’ decisions and oversight. SC obtains about 12,000 reviews per year.)

o Support to SC in implementing and executing the DOE Human Subject requirements of 10 CFR 745, 45 CFR 46, and DOE Order 443.1C and successor policies and regulations.

Technical assistance to DOE elements in complying with DOE Order 458.1 and, for example, 10 CFR 770; independent verification activities required for the clearance of DOE real property include review of the radiological characterization report or data and may include independent surveys or sample analysis. This requires a contractor to have no unmitigated organizational conflicts and to provide DOE expert advice and consultation on matters related to radioactive contamination at sites and assisting DOE and its cleanup contractors in resolving site characterization data discrepancies.

Technical support for the DOE Beryllium Registry (DOE-STD-1187-2007, Beryllium -Associated Worker Registry Data Collection and Management Guidance).

o Operate a government-furnished beryllium testing laboratory for performance of Lymphocyte Proliferation Tests (DOE-SPEC-1142-2001, DOE Specification: Beryllium Lymphocyte Proliferation Testing).

o Facilitate electronic reporting of data for the DOE Beryllium Registry.

Operation of REAC/TS, a Nuclear National Security Administration Emergency Response Asset. For more information about REAC/TS see https://www.nnss.gov/pages/programs/frmac/ERAssets.html.

The current contract value is approximately $4 Billion with an annual operating budget approaching $250 Million per year, based on recent FY costs. The total value of the 12-month extension is estimated at $250 Million. A noncompetitive extension of the current contract would allow the contractor to continue to perform the scope areas with minimal disruption, would allow time to solidify recent operations management improvements, and would overall support resources for contract performance post pandemic, which had created several operational and attrition challenges.

4. Identification of the statutory authority permitting other than full and open competition.

The Federal Property and Administrative Services Act of 1949, as amended, authorizes this action. Specifically, 41 U.S.C. § 3304(a)(1) provides for the use of other than competitive procedures when the property or services needed by the executive agency are available from only one responsible source and no other type of property or services will satisfy the needs of the executive agency. This action will be implemented under FAR 6.302-1.

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

The contemplated contract extension is predicated on SC exercising appropriate authorities based on market research that concluded that only one responsible source capable of performing the scope, specifically meaning all five activities enumerated in Section 2 above, in the immediate 2025-2026 time frame.

SC, as well as other DOE programs that fund ORISE activities, have a continuing need for the DOE mission-critical capabilities that are provided through the ORISE contract. The regulatory framework requires SC to address the contractor’s unique qualifications. The contractor for the contemplated contract does not have inherently unique capabilities necessarily; what is unique is that this particular contractor has requisite capabilities to perform all five activities that make up the current ORISE scope. ORAU, as the incumbent contractor, possesses the necessary resources through its scientific, technical, and managerial staff; research, consultative, and technical experience; business relationships and experience; established partnerships; and corporate experience to provide the required capabilities to support DOE's mission objectives through the ORISE contract.

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

In accordance with FAR Subpart 5.2, the government synopsized a “Special Notice of Intent” on August 26, 2024, to advise industry that award of a contract extension using other than full and open competition would be executed before the current contract expiration date of September 30, 2025. The Government received four expressions of interest. The evaluation of these expressions of interest is discussed below in Section 8.

7. A determination by the contracting officer (CO) that the anticipated cost to the Government will be fair and reasonable.

The Department's budget process, performance-based contract requirements, and active DOE oversight and audit provide adequate controls to ensure that expenditures (costs) to support the required levels of authorized activity are fair and reasonable and that contractor performance remains at an acceptable level. In addition, negotiated performance fees are established in accordance with the DOE Acquisition Regulation and SC policy.

The Department, with the cooperation of the ORISE contractor, submits an annual operating and capital expenditure budget request for performance at a prescribed level of activity to fulfill its mission requirements. Contractor obligations, commitments, and expenditures are limited to the specific funding levels established by the Department and are controlled through issuance of approved funding plans and work authorizations to the Contractor.

Performance and expenditures are monitored by the Department using several parallel systems.

Reviews and evaluations are performed in accordance with contractual requirements, as are regular incurred cost audits.

SC requires the ORISE contractor to maintain employee compensation and benefit systems acceptable to DOE. Changes to employee compensation are subject to an annual Compensation Increase Plan, which is subject to limitations in the contract. The value derived from compensation and benefits provided is reviewed periodically by DOE and benefits may be adjusted if necessary.

In addition to costs of compensation and benefits, the contractor is required to maintain an approved purchasing system which DOE considers adequate to enter into subcontracts for commodities, including services, at reasonable prices. The ORISE Purchasing System is also subject to approval and to periodic review under DOE’s Procurement Engineering and Re-Engineering Team review on behalf of the DOE Senior Procurement Executive. The contractor has established DOE-approved systems that ensure reasonableness of costs for travel, conferences, training, intellectual property management, and several other areas.

The contractor's financial management system is an integrated accounting system that is linked to DOE's accounts through the use of reciprocal accounts. This arrangement allows programmatic flexibility and oversight. Contract costs are audited annually and the allowability of costs under the contract are determined by the Cognizant Contracting Officer.

The CO and a team of subject matter experts from SC will analyze the proposal and negotiate fair and reasonable pricing for the costs which the Government will incur during the extension period. As explained, costs incurred are also subject to audit. The total value of the 12-month extension is estimated at $250 Million.

8. A description of the market research conducted and the results or a statement of the reason market research was not conducted.

Formal, active market research has been conducted. Thus far, no entity or prospective team appears capable of performing the scope of the current contract. SC posted a notice on August 26, 2024, seeking expressions of interest for this 12-month extension, from which four were received. SC considered these responses, along with responses and results from similar market research in 2023. While no responses were determined to show capability in all scope areas, some of these responses indicated that contractor team arrangements were being contemplated to address gaps in individual company capabilities. None of the responses demonstrated the ability to meet the agencies requirements for this immediate 12-month period.

9. Any other facts supporting the use of other than full and open competition.

The continued, uninterrupted availability of REAC/TS is vitally necessary for DOE to maintain a unique emergency response capability. Similarly, Beryllium sensitivity testing must be maintained without interruption to meet DOE’s obligations to former and current workers. In the other three scope areas, there is a large volume of in-process work that, if interrupted or delayed, would hinder several DOE programs in achieving their objectives. In addition to maintaining program continuity, extending the contract by one year will allow updated market research and development of the solicitation and evaluation of the responses in order to have a timely award.

10. A listing of the sources, if any, that expressed in writing, an interest in the acquisition.

SC has documented these sources in a separate market research report and has not sought permission from the sources that expressed interest to publish their interest in the acquisition.

11. A statement of 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.

SC continues to engage prospective offerors and will continue to assess its mission needs and objectives to determine the optimal approach for mission delivery and to assess the adequacy and available of offerors that can effectively respond to a subsequent solicitation.