Ports LPP_JOFOC Extension II.pdf

Robert J. Bell, Contracting Officer

Pamela Thompson, Supervisory Contracting Officer

JOFOC Number:

Justification for Other than Full and Open Competition (JOFOC)

Portsmouth/Paducah Project Office (PPPO)

Portsmouth Environmental Remediation

DE-AC24-05OH20192

Upon the basis of the following justification, as Senior Procurement Official, I hereby approve the use of other than full and open competition of the proposed contractual action pursuant to the authority of 41 U.S.C. 253(c) (1) and in accordance with Federal Acquisition Regulation (FAR) 6.302-1 “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.”

Identification Number: Contract DE-AC24-05OH20192

1) Agency and Contracting Activity:

The U.S. Department of Energy (DOE), Office of Environmental Management (EM), Portsmouth Paducah Project Office (PPPO), proposes to modify contract DE-AC24- 05OH20192 on a basis of other than full and open competition.

2) Nature and/or Description of the Action Being Approved:

The PPPO intends to modify contract DE-AC24-05OH20192 with LATA/Parallax Portsmouth, LLC (LPP) to allow an extension to the period of performance of eight (8) months, July 1, 2010 – February 28, 2011, for the continuation of environmental remediation activities at the Portsmouth Gaseous Diffusion Plant (PORTS) while the decontamination & decommissioning (D&D) solicitation proceeds through the acquisition process. The estimated value of the modification is approximately $.

LPP was awarded the current contract effective January 10, 2005, based on a competitive small business set aside procurement concluded by DOE. The current period of performance expires on June 30, 2010. There has been one previous 9 month extension. Consistent with the current contract arrangement, the contemplated contract type for the modification is Cost Plus Incentive Fee (CPIF). The contract extension is to continue remediation and disposition of specific areas on the DOE Portsmouth site (land sites and groundwater) by removing legacy waste, initiating facility decontamination and decommissioning (D&D), disposition of highly enriched uranium, and operating the site waste storage facilities in accordance with all the applicable laws, regulations, DOE Directives, permits, and Agreements and Orders.

Disposition is defined in the specific applicable Orders and Agreements. The contract extension will allow environmental remediation activities which reduce potential health risks to the public to continue at the Portsmouth site until completion of the on-going D&D competitive procurement. DOE anticipates that award will be made in the 1st quarter of Fiscal Year 2011 as published on the DOE Acquisition Forecast webpage.

3) Description of Services Required to Meet Agency’s Needs Including the Estimated Value:

EM was created by Congressional mandate in 1989 and is responsible for cleanup and legacy waste management activities at DOE sites. The objective of the DOE EM program is to restore contaminated sites to a state protective of human health and the environment. In order to meet the EM objective and the needs of DOE, the following environmental remediation services at the Portsmouth site are contemplated as part of the contract extension:

• Quadrant II remedial actions that include removal of the source contaminant at the X-701B groundwater plume

• Removal of the foundation, neutralization pit, and characterization of the contaminated soils at X-760 inactive facilities

• Repackaging and disposition of uranium materials

• Soil characterization of the X-630 and the X-633 areas

• Soil characterization and remediation of the X-747K area

• Demolition and characterization of the X-103, X-230J9, X-334, X-344B, X-605H, -I, -J, and X-630, inactive facilities

• Post remediation surveillance and maintenance of groundwater treatment facilities

• Environmental monitoring and reporting of on-site and off-site air, soils and water

• NEPA compliance, cultural resource surveys including but not limited to Phase II Archeological surveys, and radiological surveys in support of building returns from USEC, and reindustrialization/reuse of equipment and real property

• Disposition of highly enriched uranium including the oversight of the D&D of the process line at Nuclear Fuel Services (NFS)

• Maintenance and disposition of existing uranium materials

• Down blending and disposal of the Filter Ash and Oil Leak Gunk

• Disposition of two (2) sealed sources located in the X-103 Building

• Disposition of 301 small cylinders, Phase III

• Cleanup and disposal of polychlorinated biphenyls (PCBs) activities

• Rail upgrade including rails, scales, all-purpose weather protection structure

• Project Management System

• Maintaining the Integrated Safety Management System (ISMS) and the Environment, Safety, and Health (ES&H) Program

• Administrative services not limited to management, public affairs, financial, legal, procurement, program management, taxes, public information, support to DOE, Site Specific Advisory Board support, human resource management, and diversity commensurate to support the contractor’s scope of work

• Transportation services including, but not limited to, shipments of hazardous or radioactive waste generated from the D&D and remediation activities, laboratory or sample shipments, required scale calibrations, vehicle and equipment maintenance, and management

• Records management, safeguards and security, and property management

b) Estimated Value: The estimated value of this scope is approximately $. American

Recovery and Reinvestment Act (ARRA) funds will be used for the demolition of the X- 760 Building foundation and neutralization pit, including soil characterization and remediation, removal of source contamination at the X-701B groundwater plume, and repackaging and disposition of approximately 3 lots of uranium material. The funding profile including the types of funds to be utilized is as follows:

PBS Estimate (in millions of dollars)

PO-0040

PO-0020

PO-0013

PO-0011

4) Statutory Authority Permitting Other Than Full and Open Competition:

The Competition in Contracting Act, 41 U.S.C. 253(c)(1), as implemented by FAR 6.302- 1(a), authorizes other than full and open competition when the supplies or services required by the agency are available from only one responsible source, and no other type of supplies or services will satisfy agency requirements.

5) Unique Contractor Qualifications:

LPP is uniquely qualified to provide services to the PPPO at the Portsmouth site until award of the D&D Contract based on the following:

a) LPP has approved safety basis documentation in place to continue performing environmental remediation services for the Category 2 Nuclear Facilities and the radiological facilities at Portsmouth. The documents included in the approved safety basis include Documented Safety Analysis (DSA), Technical Safety Requirements (TSRs) for the Category 2 Nuclear Facilities (X-744G, X-345, X-705E, and X-326) and facility hazard analyses for the radiological facilities (X-705B; X-747K; X-747H/X-752;

and X-330, X-333, X-342, and X-344 DOE Material Storage Areas). These documents were developed for each individual facility or group of facilities based on the specific hazards associated with the facility and existing, and to the extent possible, planned activities within that facility. Based on current practices at Portsmouth and for uncomplicated changes (e.g. routine revisions, addition of single units of equipment or hazardous materials), these documents typically take approximately 2 months to be revised and approved. Development of new documents or revisions due to significant or complicated changes could require a significantly longer period of time (up to seven (7) months). Remediation work and worker safety during this time could be adversely impacted. There is a strong likelihood that some of the safety basis documentation would not be completed during this interim period and the process for some documents would have to be started again with the D&D contractor. LPP is the only contractor with the regulatory framework, documentation, and procedures in place at Portsmouth to continue this work without interruption.

b) DOE risks losing LPP personnel with critical skills due to lack of job stability if there is a break in contract performance. This will have an adverse affect on the remediation work.

The number of ARRA projects being implemented across the DOE complex has resulted in a limited pool of skilled personnel from which new contractors can draw. Hiring of equally qualified individuals may be affected. Extension of the LPP contract provides job stability to the employees through the extension period and maximizes the Government’s ability to retain trained personnel with critical skills without incurring additional costs associated with severance pay for entitled employees. In addition, the Government costs for re-training and recruitment may be significant.

c) LPP is the only contractor to have the necessary regulatory approvals to accomplish the work or currently situated to obtain the necessary regulatory approvals to conduct the in scope work. Obtaining regulatory approvals can take up to one year or more. The use of an interim contractor is not feasible as there is insufficient time for an interim contractor to start the regulatory approval process and obtain the necessary CERCLA and RCRA approvals in the eight month extension time period. The inactive facility removal at Portsmouth will require a combination of work under CERCLA and RCRA Corrective Action authorities. For the CERCLA portion of the work, removal action documents will need to be generated or modified and include (one or more) Removal Notification, Engineering Evaluation/Cost Analysis, Action Memorandum, and Removal Action Work Plan. For the RCRA Corrective Action portion of the work, NEPA and required RCRA documentation will be required. The typical regulatory approval process takes a year or more to obtain the necessary regulatory approvals. If an interim contractor is employed to obtain the regulatory approvals, the CERCLA and RCRA regulatory approvals will be delayed more than one year.

d) LPP is the owner of the site-wide National Pollutant Discharge Elimination System

(NPDES) Permit. The NPDES is managed by the Ohio EPA and allows, with a permit, the discharge from government facilities into surface waters. If an interim contractor replaces LPP, the NPDES Permit would need to be transferred from LPP to the interim contractor. It takes approximately 3 months after upon award to an interim contractor to transfer the NPDES Permit. Additionally, it would have to be transferred again upon award of the D&D contract. Thus, instead of transferring the NPDES Permit from LPP to the D&D Contractor, the NPDES Permit would be transferred from LPP to the interim contractor and then transferred from the interim contractor to the D&D contractor. The Government would bear the expense of transferring the NPDES Permit twice if an interim contractor replaces LPP.

e) LPP is the co-signature with DOE on the RCRA Part B Permit. If the RCRA Part B Permit is transferred from LPP to an interim contractor and then to the D&D contractor, the Government will pay the transfer expenses of the RCRA Part B Permit twice rather than once in the transfer from LPP to the D&D contractor. The RCRA Part B Permit allows the Portsmouth site to store hazardous waste. A change of operating contractor (i.e., LPP to a new contractor) would require a change to the permit. In order to change the RCRA Part B Permit for a new contractor, the Ohio EPA would have to evaluate the contractor’s key personnel and the contractor’s record of environmental compliance.

f) LPP is certified by Nevada Test Site (NTS) to generate and dispose of waste at NTS. The

NTS Program Certification allows the Portsmouth site to generate and dispose of low-level waste meeting the NTS Waste Acceptance Criteria (WAC). In order to obtain the NTS Program Certification, a new contractor would be required to provide a certification package including all necessary documentation to meet the NTS WAC. It takes a new contractor 6 months to 1 year to obtain this certification. Although a new contractor could initially adopt LPP’s certified program, there would still be a period of 90 days or more in which wastes could not be shipped while NTS audited the new contractor’s program in order to re-certify it. During the period wastes could not be shipped, project activities could be delayed or stopped due to storage constraints for newly generated wastes. Project performance could be similarly impacted and the associated milestones would be jeopardized. Finally, an NTS Program Certification would have to be obtained again upon award of the D&D Contract, thus causing an expense with no benefit to the Government.

g) Contracts of this nature require transition from the incumbent contractor to the incoming contractor. This time allows for establishing a contract team in order for the contractor to assume its role as the remediation contractor at Portsmouth, assume responsibility for personnel, legal, administrative, and technical functions/systems/continuing responsibilities, and performing other necessary duties to enable the contractor to assume its role seamlessly as the remediation site contractor. The transition period contained in the D&D contract solicitation is 90 days. Assuming this same transition period there would be insufficient time for an interim contractor to obtain sufficient experience to allow for a meaningful transition to the D&D contractor which could in turn result in added costs to the Government during the life of the D&D contract. LPP is uniquely qualified at this point in time to fulfill the requirements for continued remediation support and provide a meaningful transition to the D&D contractor.

6) Efforts to Solicit Offers from as many Potential Sources as Practicable:

LPP is the only source possessing the unique capabilities to complete the contemplated scope of work within the required timeframe. Therefore, no additional sources will be solicited for this extension. DOE issued a Notice of Intent (NOI) Synopsis (published in the FedBizOps) stating the intent to issue a sole source modification to extend the period of performance under DE-AC24-05OH20192 with LPP on May 28, 2010. Although the synopsis was not a formal request for proposals or an invitation for bids, interested parties were afforded an opportunity to respond within fifteen (15) days. There were no expressions of interest received as a result of the NOI synopsis.

7) Determination of Fair and Reasonable Anticipated Price:

The Contracting Officer will consider the following evaluations: EMCBC Cost and Price Analysis Report, the Independent Government Cost Estimate (IGCE), Defense Contract Audit Agency (DCAA) audit, and the DOE Portsmouth technical staff evaluations to determine the fairness and reasonableness of LPP’s price. The Environmental Technical Services (ETS) contractor will support the DOE Portsmouth staff in its evaluations. The DOE Portsmouth technical staff is familiar with the proposed work scope for the Portsmouth site, and the current capabilities of LPP.

8) Description of Market Research Conducted:

Formal market research has not been conducted to support this sole source extension request due to its limited time frame and the ongoing competitive D&D procurement. LPP as the incumbent site environmental remediation contractor is the only contractor who has the unique qualifications to continue the necessary environmental remediation activities at the Portsmouth site until award is made under the on-going D&D acquisition without the delays, extra costs, and likely loss of skilled workforce associated with award to a different contractor, as discussed in paragraph 5 above. Since the Ports D&D offers were received by the DOE on November 13, 2009 and are being evaluated, the DOE anticipates that award will be made in the 1st quarter of Fiscal Year 2011 as published on the DOE Acquisition Forecast webpage (last updated January 29, 2010). As stated above in Section 6, DOE issued a synopsis stating the intent to issue a sole source modification to extend the period of performance under DE-AC24-05OH20192 with LPP on May 28, 2010. In this synopsis, interested parties were afforded an opportunity through the submission of capability statements to assist the Department in determining the existence of potential sources. There were no expressions of interest received as a result of the NOI synopsis.

9) Other Facts Supporting the Use of Other than Full and Open Competition:

By utilizing the current contract, DOE can accelerate the work at Portsmouth which will result in life cycle cost savings of approximately $133M (2008 dollars) to the American taxpayer. Approval of the JOFOC will allow for continuous work for the current contractor eliminating any interruption in the existing scope of work and continuance of the ARRA work scope. The ARRA requires time critical actions that support job stabilization, job creation, and economic revitalization of the surrounding Portsmouth area.

It would not be efficient or practical to compete this work scope while there is an on-going competitive procurement (D&D) which includes Portsmouth environmental remediation work scope. By extending the current contract on a sole source basis, DOE will avoid substantial duplication of transition costs that would not be recovered through a full and open competition prior to award of the D&D contract. LPP realized $3.2M in transition costs under the current contract.

DOE would incur unacceptable delays in fulfilling the agency’s requirement to continue remediation of the Portsmouth site and risk missing enforceable regulatory milestones if the contract cannot be extended.

10) Listing of Interested Sources:

There are no known interested sources.

11) Actions to Remove or Overcome any Barriers to Competition Before any Subsequent

Acquisition for the Services Required:

DOE issued a request for proposals (RFP) on June 24, 2009 and is conducting a full and open competition for the Portsmouth D&D contract. Offers were received by the DOE on November 13, 2009. Environmental remediation services scope will be included in the Portsmouth D&D contract which is anticipated to be awarded in the 1st quarter of Fiscal Year 2011.

SOURCE SELECTION SENSITIVE

See FAR 2.101 and 3.104

12) Certification:

The information contained in this justification for other than full and open competition is certified accurate and complete to the best of my knowledge and belief.

Acquisition Initiator:

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.

Manager Portsmouth/Paducah Project Office

Contracting Officer:

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

Contracting Officer Portsmouth/Paducah Project Office

SOLIRCE SELECTION SENSITIVE

~eviews:

Legal Counsel:

Contracting:

SOURCE SELECTION SENSITIVE

See FAR 2.101 and 3.104

EM ~okjolidated ~usiness Center

Ralph Holland Date Assistant Director

Compefition Advocate:

Head of the Contracting Activity:

Date d Project Mauagement

Approval:

Senior Procurement Executive: 6 - ill-/O Patrick Fei-rare Date Acting Director Office of Psocuremei~t and Assistance Management

SOURCE SELECTION SENSITIVE