Attachment 1 - Logical Follow-on Sole-Source Justification for Moab TAC HCA Signed.pdf

SOURCE SELECTION INFORMATION, See FAR 2.101 and 3.104/ CUI//SP-PROCURE

JUSTIFICATION FOR EXCEPTION TO FAIR OPPORTUNITY

Project Name: Moab Technical Assistance Contract (TAC) Task Order

Estimated Cost/Price of the Task Order: Approximately $20.75M

Authority: FAR 16.505(b)(2)(i)(C)

Type of Determination: Individual

I. Contracting Activity

United States Department of Energy (DOE), Office of Environmental Management (EM), EM Consolidated Business Center (EMCBC).

II. Nature and/or Description of the Action Being Processed

The DOE has a requirement for continued technical assistance support at the Moab Uranium Mill Tailings Remedial Action (UMTRA) Project beyond the current, original task order’s period of performance. This is a justification for issuance of a new task order on a sole-source basis in the interest of economy and efficiency because it is a logical follow-on to the original task order. In February of 2023, the original task order’s solicitation gave all seven of the multiple-award Indefinite Delivery / Indefinite Quantity (IDIQ) contractors for the EMCBC Site TACs (awarded September 2022) a fair opportunity to be considered for Moab’s award. The winner of the competition was S&K Mission Support LLC (S&K), with an awarded period of performance of May 2023 to June 2025 after all contract options are exercised. The type of work that is proposed to be performed under the logical follow-on is the same as the services currently being performed and is, therefore, consistent with the scope described in the performance work statement of the master IDIQ contract and the original task order. The logical follow-on’s estimated cost/price is approximately $20,750,000, which, when combined with all other task orders, remains within the maximum ordering quantity of the master IDIQ contract. In addition, the logical follow-on will be issued prior to the end of the ordering period of the master IDIQ contract (ending September 2027).

III. Description of the Supplies/Services Required To Meet the Agency’s Needs

The scope of the logical follow-on is for the same work scope as the original task order.

Specifically, the requirements are as follows:

• Program and Project Management and Project Controls Support

• Records Management/Documentation Graphics, and Reproduction Support

• Training Support

• Information Technology and Communications Support

SOURCE SELECTION INFORMATION, See FAR 2.101 and 3.104/ CUI//SP-PROCURE

• Safeguards and Security Support

• Public Affairs/Community Relations Support

• Property Management Support

• Environmental Support

• Quality Assurance Support

• Safety and Health Support

• Radiological Protection Support

• Administrative Support

These have been the prime headings throughout the original task order’s performance work statement for the past 1.5 years of performance. What all these have helped enable at Moab in that timeframe, however, is the mission of site closure for DOE EM. In September of 2023, Moab’s Remedial Action Contract IDIQ progressed to its penultimate task order, and now EM’s primary need is the continuation of all current processes accelerating toward completion of Moab’s Uranium Mill Tailing Remedial Action (UMTRA) Project.

IV. Authority Permitting a Fair Opportunity Exception

FAR 16.505(b)(1)(i) and IDIQ Clause H.41, Task Ordering Procedure, require the Contracting Officer to provide each awardee under a multiple-award contract a fair opportunity to be considered for each order exceeding the micro-purchase threshold unless a statutory exception applies. As cited in Clause H.41 at subparagraph (e)(3), though, there is a specific exception to this fair opportunity process, at FAR 16.505(b)(2)(i)(C):

The order must be issued on a sole-source basis in the interest of economy and efficiency because it is a logical follow-on to an order already issued under the contract, provided that all awardees were given a fair opportunity to be considered for the original order.

In the interest of economy and efficiency, a follow-on task order will be issued to S&K on a sole-source basis. Awarding it on this basis will allow DOE to continue all processes and relationships in Moab’s knowledge-based economy as EM accelerates toward completion of the Moab UMTRA Project in 2029. The processes managed by S&K’s Program Manager over his 20+ personnel are currently effective at sustaining the site’s ability to do this. These processes are internal to S&K – including its major subcontractor, Pro2Serve – and cannot all be transitioned from one contractor to another. The relationships with internal and external stakeholders are effective as well. S&K subject matter experts participate in multiple Integrated Project Teams (IPTs), Working Groups, and stakeholder events. They are embedded in critical discussions such as the Final Status Survey IPT, Project Planning and Closure Working Group, Groundwater Corrective Actions IPT, and stakeholder outreach.

S&K performs consistently well, attaining “Excellent” CPARS rating in management and “Very Good” CPARS ratings in schedule, cost, and quality. A new contractor would come with a new learning curve in an already schedule-sensitive environment. This challenge would be poorly timed, given the site’s projected closure date of March 2029 (current as of 2024 Remedial Action Contract projections).

Typically, conducting a competition often results in innovative technical approaches or cost savings for the Government. However, since introducing a new technical approach would likely disrupt the processes and relationships described above, the only other goal of a competition at this stage would be cost savings. But, DOE expects to close the site soon after negotiating a logical follow-on task order with S&K. Therefore, any investment in conducting a competition to gain cost savings would likely not provide material returns in relation to the budget due to the very recent competition and the relatively short time to site closure.

Stability in the workforce should avoid any delays in meeting EM’s stakeholder commitments.

Considering the processes and relationships that will be sustained via continued performance by S&K, issuing S&K a follow-on task order on a sole-source basis will be the most economical and efficient method to closing the Moab site.

V. Determination by the Contracting Officer That The Anticipated Cost to the Government Will Be Fair and Reasonable

As stated above, the work will be essentially the same under a follow-on task order with similar technical assistance work scope described in the original task order. The period of performance and value of the follow-on task order will be for 3.75 additional years at less than $20.75M. The Contracting Officer will commission the completion of an Independent Government Cost Estimate (IGCE) to estimate the cost of a follow-on task order and a full cost/price analysis will be performed. It is anticipated that there will be an increase in the annual costs for the follow-on because of escalation and emerging site needs.

Through negotiation, DOE will be able to determine a fair and reasonable price. The original task order is currently Firm-Fixed-Price (FFP). In the past Moab TAC has needed Time-and- Materials (T&M) elements, but it should continue to be FFP under a follow-on task order until T&M is needed again, possibly during the Remedial Action Contract’s final Site Cleanup task order yet to be awarded. Analyses of the historical costs and trends under the original task order and the previous, single-award IDIQ with S&K will be used as bases to negotiate prices for the follow-on work. An audit and/or cost analysis will be required ensuring all proposed costs are reasonable. The audit and/or cost analysis will review current company information to evaluate and determine price reasonableness. Additionally, the IGCE will aid in the evaluation and negotiation of a fair and reasonable price for the follow-on work. Ultimately, the Contracting Officer believes that the anticipated price of this follow-on order will be fair and reasonable considering the significant amount of historical information DOE has available for analysis.

VI. Other Facts Supporting the Justification

S&K's performance to date has been very good overall. S&K has done a very good job on the original task order of continuing the work from the last contract by executing efficient processes and by maintaining effective working relationships with contractor partners, with the DOE customer, and with the site’s stakeholders. The contractor exhibits continuous improvement in

SOURCE SELECTION INFORMATION, See FAR 2.101 and 3.104/ CUI//SP-PROCURE assigned programs which, is a benefit to the government. S&K has been very flexible and able to respond quickly and positively in response to the Remedial Action Contract accelerating tonnage shipped from Moab. In fact, the tonnage achieved during the Government’s Fiscal Year (FY) 2024 was a record high, and the tonnage in FY 2023 included various debris never shipped from Moab before. Through it all, S&K performed under its competed Firm-Fixed-Price amount without any issues.

Additionally, DOE has made every effort to enhance competition to the maximum extent possible for this requirement that is part of the SBA 8(a) Business Development Program. For reference, the previous, single-award IDIQ with S&K was a competitive, SBA-8(a)-set-aside in 2017, and DOE could have done an SBA-8(a)-sole-source award for the successor contract.

DOE, however, decided instead to consolidate EM’s complex-wide Site TACs requirements into a competitive, SBA-8(a)-set-aside, multiple-award IDIQ contract. This allowed DOE to compete the existing task orders amongst the seven 8(a) IDIQ contractors, which, finally in 2023, resulted in S&K being selected as the best value to the Taxpayer for the Moab TAC task order. Now, continuing performance on a sole-source basis with S&K is also in the interest of the Taxpayer through a logical follow-on task order.

VII. Actions the Agency May Take to Remove or Overcome Any Barriers To Increasing Fair Opportunity Before Any Subsequent Acquisition For the Supplies or Services

This justification for an exception to fair opportunity will be posted to the Governmentwide point of entry (SAM.gov) within 14 days of Moab TAC Task Order issuance for 30 days, as required by FAR 16.505(b)(2)(ii)(D).

Although unlikely at this time due to projected site closure, any EM Moab TAC after the logical follow-on would not be accomplished under the existing Site TACs IDIQ contracts, as the ordering periods will expire in 2027. DOE intends to re-compete the EM IDIQ contracts and will solicit these requirements subsequent to the logical follow-on using the procedures described in FAR Part 15, as was done in awarding the current round of seven 8(a) IDIQ contracts.

VIII. Contracting Officer’s Certification

I certify that this justification is accurate and complete to the best of my knowledge and belief in accordance with applicable regulations.

Michael Forsgren Date Contracting Officer

DOE EMCBC

SOURCE SELECTION INFORMATION, See FAR 2.101 and 3.104/ CUI//SP-PROCURE

IX. Technical/Requirements Personnel’s Certification

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.

Chris Pulskamp Date Project Engineer DOE EM-Moab Field Office

X. Determination by Approving Official

The Approving Official determined based upon the analysis in this justification that the circumstances in 16.505(b)(2)(i)(C) apply to the Moab TAC Task Order.

CONCURRENCE:

Amber Gray Date Competition Advocate Office of Environmental Management

APPROVAL:

Angela Watmore Date Head of Contracting Activity Office of Environmental Management