Attachment 1 Performance Work Statement LEU Reserve.pdf

89233120RNA000077

Attachment #1

March 10, 2020

Performance Work Statement

For

Low Enriched Uranium Storage and Inventory Management

1.0 BACKGROUND

The Department of Energy, National Nuclear Security Administration, disposed of 21 metric tons (MT) excess Highly Enriched Uranium (HEU) by down-blending to Low Enriched Uranium

(LEU) below 5% enriched in the isotope 235U. One hundred and sixty-five (165) MTs of the

Derived LEU is stored as a DOE reserve. The LEU is currently stored at a United States (U.S.)

fuel fabricator facility in Columbia, SC and an enriching facility in Eunice, New Mexico. The current LEU storage contract ends in June 2020. It is anticipated that DOE has a need for a follow-on contract for continued storage of DOE’s LEU reserve.

2.0 CONTRACT OVERVIEW

The overall objective of the procurement is to meet national security requirements by continuing safe and secure storage for the 165 MT LEU that was produced by downblending excess HEU below 5% enrichment and retain the LEU as a reserve for use in tritium. The Contractor will be allowed to use the Government’s LEU as a working inventory in accordance with the contract

Performance Work Statement and under the conditions of the Holding Agreement and Contract;

however, the Government’s LEU is unencumbered and unobligated LEU and must be returned to

DOE as unencumbered and unobligated in accordance with a Holding Agreement in the form

UF6 meeting the ASTM International (ASTM) Specification C996-04E1 in Contractor supplied

UF6 cylinders and overpacks approved for domestic shipment, with title to cylinders transferring to DOE at time of delivery, and overpacks returned to the Contractor. The term of the contract will be up to 5 years, a one (1) year base contract, with four one (1) year options.

3.0 PROGRAM SCOPE

The Contractor shall arrange either book transfer or physical transportation for the LEU from the

DOE designated facility(s), and store up to approximately 165 MT LEU in a Government account. The Contractor may use this unencumbered and unobligated LEU as working inventory, but must deliver to the Government 100% of the LEU as unencumbered and unobligated as requested, in accordance the PWS and with the Section J Attachment 2, entitled, “Holding

Agreement”.

4.0 TECHNICAL REQUIREMENTS

4.1 Transport and Receipt of LEU

4.1.1 The Contractor shall establish an account in the name and for the benefit of the Government that represents the quantities of Government-owned

LEU (Government LEU Account).

4.1.2 The Contractor shall secure necessary licenses, equipment, shipping containers, and packages required to transport, receive, store, and at time of LEU call-up package and transfer the Government LEU to a DOE designated facility. The Contractor shall have insurance coverage that complies with NRC regulation.

4.1.3 The Contractor shall receive the LEU at a storage facility located in the

United States and licensed by the U.S. Nuclear Regulatory Commission

(NRC), and have the capability for receiving, storing, cylinder rotation, packaging and delivering LEU in the form of UF6.

4.1.4 The contractor shall either: arrange for exchange of the Government’s

UF6 currently stored at the Columbia, SC and/or Eunice, New Mexico facilities with equivalent quality and quantity of Contractor UF6; or physically receive the Government’s UF6.

4.1.5 Book transfer is preferred, and the Contractor shall make every effort to arrange for book exchanges where Contractor UF6 is exchanged for the

Government’s UF6.

4.1.6 Contractor shall only exchange the Government’s UF6 with Contractor

UF6 that meets the ASTM International (ASTM) Specification C996-

04E1.

4.1.7 In the case physical delivery is required, Contractor will pickup LEU from the DOE Designated Facility(s) which will be provided in Type 30 B cylinders conforming to the provisions of American National Standards

Institute’s standard specification ANSI N14.1 (latest revision at the time of manufacture of such cylinder) and certified against this standard, if necessary. Each cylinder must be overpacked for transportation, meeting the conditions stated in the package approval and validations, as well as the applicable transport regulations.

4.1.8 The Contractor shall take delivery f.o.b. origin DOE Designated

Facility(s) approximately 165 MT of LEU within six months of contract award.

4.1.9 Title to transportation cylinders shall pass to the Contractor upon receipt at the Contractor facility.

4.1.10 Contractor shall supply UF6 cylinder overpacks for both the receipt and delivery of UF6.

4.1.11 The "delivery" of LEU to the Contractor shall be deemed to occur upon either executing a “book transfer” or physical receipt. A copy of the Form

DOE/NRC-741 and analytical data certificate shall accompany the delivery of LEU to the Contractor.

4.2 Storage, Packaging and Shipment of UF6

4.2.1 The Contractor shall store the LEU in the Government’s LEU Account in accordance with the Holding Agreement, including, but not limited to, the requirement that the LEU remain within the United States. In accordance with Holding Agreement, Contractor is authorized to use LEU as working inventory and is considered fungible.

4.2.2 The Contractor shall account for and inventory the LEU transferred by the

Government in accordance with the Contractor’s license requirements and report annually to DOE in accordance with PWS, Section 4.3.

4.2.3 The Contractor shall have all LEU available for shipment to the

Government as specified in the PWS and Holding Agreement.

4.2.4 The LEU shall be available to DOE as UF6 and prepared for Physical

Delivery to the Government, in accordance with the Holding Agreement in Contractor-furnished cylinders and overpacks.

4.2.5 Upon LEU call up by DOE, per the Holding Agreement, the Contractor shall be responsible for supplying UF6 in certified cylinders which will transfer to DOE upon delivery.

4.2.6 Unless otherwise agreed to by the Government and the Contractor, the

UF6 delivered to the Government or its designee shall be at a 4.95% assay and shall meet the ASTM Specification C996-04E1.

4.2.7 In accordance with the Holding Agreement, 43 MT of Government owned

LEU in the form of UF6 from the Government LEU Account shall be available for Physical Delivery to the Government within 120 days of receipt of written direction from the COR. Up to 100% of the LEU shall be available for Physical Delivery to the Government in the form of UF6 within 18 months after receipt of the first written direction from the COR.

4.2.8 The Contractor shall ensure that LEU equivalent to 100% of the

Government account be maintained as unencumbered and unobligated

LEU.

4.2.9 The Contractor shall take title to and dispose of all of the waste streams resulting from activities performed under this contract.

4.3 Reporting Requirements

4.3.1 The Contractor shall submit all reports in accordance with the Section J attachment entitled “Reporting Requirements Checklist.”

5.0 QUALITY ASSURANCE

5.1 The Contractor shall comply with their NRC approved quality assurance program.

5.2 The uranium product quality shall be in accordance with ASTM International

(ASTM) Specification C996-04E1.

6.0 SERVICE DELIVERY SCHEDULE

Performance

Objective

PWS

Paragraph Performance Threshold

Transport and

Receive LEU

4.1 Arrange book transfer or physical transportation

of LEU from the DOE designated facility(s).

Store LEU 4.2 Establish Government LEU Account established representing the quantities of Government-owned LEU.

Up to 165 MT LEU stored in a Government

Account and shall not be physically removed out of the United States.

Provide UF6 4.1.6, 4.2.6. 5.2 UF6 shall meet ASTM specifications.

Have UF6 ready for shipment

4.2.7 43 MT of LEU in the form of UF6 shall be available for Physical Delivery to the

Government within 120 days of receipt of written direction from the COR.

100% of the LEU in the Government LEU

Account in the form of UF6 shall be available for

Physical Delivery to the Government within 18 months after receipt of written direction from the

COR, or on the last day of the contract period of performance whichever is earlier.

Reports 4.3 100% of reports delivered on time in accordance with Section J, Attachment entitled “Reporting

Requirements Checklist.”