ATTACHMENT 1 - JA for Dollar Increase for North Windasw.pdf

United States Department of Energy EM Consolidated Business Center, Cincinnati, Ohio

Justification For Other than Full and Open Competition

IDIQ Contract Number 89303321DEM000054

Environmental Remediation Services, Demolition and Removal Services of Facilities (Contaminated), Waste Management Services, and Regulatory Services

1. Requiring agency: The Department of Energy (DOE), Environmental Management Consolidated Business Center (EMCBC), intends to increase the not-to-exceed maximum value of the Environmental Remediation Services, Demolition and Removal Services of Facilities (Contaminated), Waste Management Services and Regulatory Services in accordance with Federal Acquisition Regulation (FAR) 6.303-2(d).

2. Nature/Description of action being approved: Modification P00006 will be issued to increase the estimated maximum value of services to be ordered against the Indefinite-Delivery- Indefinite Quantity (IDIQ) Contract 89303321DEM000054 from $22,000,000 to $47,000,000.

This IDIQ allows for Firm Fixed Priced (FFP) and Time and Materials (T&M) type task orders to be issued. There are no changes made to the scope of work as this modification is strictly a ceiling increase. The Naval Reactors funding allocation was increased which permits acceleration of the remediation, demolition and other work scope services through earlier issuance of the task orders within the contract’s 5-year ordering period. The work scope to be performed on the task orders issued utilizing the increased funding allocation will be the same work scope as is stated in the current North Wind IDIQ contract. The increase in the maximum value allows for the accelerated performance of the work scope at both the Knolls and Kesselring sites.

3. Description of the needs of the agency concerned for the matters covered by the contract: DOE requires the increase in the IDIQ’s maximum value of services to enable the Naval Reactors increased funding allocation to be used to expedite its program plans. As an example, the increased maximum value of $47M will allow the complete demolition of the Q- Complex, an in-scope task that has not been executed due to lack of funding and the contract’s current maximum value of $22M. The increased maximum value will allow more task orders to be issued for accomplishment of the work scope at both Knolls Atomic Power Laboratory in Niskayuna, NY and the Kesselring Site in West Milton, NY.

4. Specification of the statutory provision providing the exception from the requirement to use competitive procedures in entering into the contract: The proposed modification shall be made under the authority of FAR 6.302-1, 6.302-5(b)(4) and 41 USC3304(a)(1). Given that the current contractor North Wind Site Services, LLC has already completed mobilization and programmatic creation to support the demolition and removal services effort, sourcing a new vendor and paying for additional mobilization and process creation would create an undue cost burden to the Government. A ceiling increase to the current IDIQ would allow for additional demolition of facilities located at both the Knolls and Kesselring sites that would expedite the completion of the project. FAR 6.302-5(b)(4) allows for the sole source of requirements to 8(a) contractors over $25 million. As this modification will increase the estimated maximum value of the IDIQ over $25 million, this change shall be made in accordance with FAR 6.303-1(b).

5. Determination that the use of a sole-source contract is in the best interest of the agency:

DOE has contracted with North Wind Site Services, LLC to provide environmental remediation services that include demolition and removal services of facilities (contaminated), waste management services, and regulatory services for work to be completed at the DOE Knolls Laboratory in Niskayuna, NY and the Kesselring Site in West Milton, NY. As the Government approaches the current estimated maximum value of the contract, acquisition planning was initiated to plan for any follow-on services that would be needed to complete all the remaining work at the Knolls and Kesselring sites. Significant follow-on work scope remains at both sites including the below grade demolition of the Q-Complex as well as the characterization and demolition/decontamination of the Southeast Quadrant of the Kesselring complex. Based on the amount of remaining work scope, considerations were made to evaluate what solutions were in the best interest of the agency. While a new direct award 8(a) contract could be made to the current vendor, North Wind Site Services, LLC under the authority of FAR 19.805-1(b)(2), it was determined that a more efficient approach would be to issue a modification to increase the estimated maximum value of the contract in accordance with FAR 6.303-1(b). A modification to increase the estimated maximum value of the contract will save the Government substantial pre-award administrative / procurement costs and time; along with saving additional program preparation dollars if a new award would go to another Alaskan 8(a) other than North Wind.

North Wind has completed the development of plans and procedures for work to be performed at the Knolls site, as required by Section J of the first task order for characterization work (Task Order 01, 89303321FEM400222), such as Work Breakdown Structure, Worker Safety and Health Program and Implementing Procedures, Integrated Safety Management System Description and Implementing Procedures, and Occupational Radiation Protection Program and Implementing Procedures. Plans and procedures submitted in accordance with Section J have been approved by DOE. Additionally, past performance considerations were made, and North Wind has demonstrated the capacity to execute Task Order 01, 89303321DEM400222 for Characterization towards on time completion and Task Order 02, 89303322DEM400263 for the Q-Complex above grade demolition, which is to be completed by December 31, 2022.

A bi-lateral modification will be used to increase the estimated maximum value of the current North Wind IDIQ contract 89303321DEM000054 to $47,000,000 but will not alter the original ordering period of October 30, 2020, through October 29, 2025. Therefore, this modification to increase the estimated maximum value of the contract and not compete a new award is authorized under FAR 19.808-1 and FAR 6.303-1(b).

6. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable: In accordance with (IAW) FAR 19.806, price reasonableness for this IDIQ contract was based on an evaluation of the Contractor’s rates as they compared to the rates of the Bureau of Labor Statistics which were previously found to be fair and reasonable.

Additionally, a cost analysis will be performed for each task order awarded under this IDIQ.

7. Such other matters as the Head of the Agency concerned shall specify for purposes of this section: DOE contacted the Small Business Administration (SBA), Boise District Office, Representative, Larry Demirelli who accepted DOE's initial offering letter to award IDIQ Contract 89303321DEM000054, to see if SBA would accept an increase in the estimated maximum value of this contract. The SBA indicated this would be acceptable so long as North

Wind remains eligible in the 8(a) program. North Wind will graduate from the 8(a) program November 1, 2025, according to their SAM.gov information.

I certify that the facts contained in this justification are complete and accurate to the best of my knowledge.

Martin Krentz Federal Project Director

Travis Taggart Contracting Officer

Aaron Deckard Office of Contracting Assistant Director

Angela Watmore Contracting Activity Competition Advocate