JOFOC - DE-AC30-06EW05001.pdf

Marjorie A. Dulatt, Contracting Officer

Pamela S. Thompson, Procurement Director

JOFOC umber:

. JUST'IFICATION FOR OTHER THAN PzlU AND.OPEN COMPETITON (JOPOC)

Portsmoutb/Paducah Project Wce (PPPO) Padumh Environmental Remediation

RPrAC30-06BWO5001

Upon the basis of the following jhtiiication I, as Senior Proohrement ~xecu&e, hereby approve the we of other than full and open competition ofthe proposed contmctual action pursuant to the'authority o f 41 U.S.C. 253 {c)(l) add in accordance with Federal Acquisition Regulation (FAR) 6.302-1 "Only One Resppnsible Source and No Otha Supplies Or . Services . Will Satisfy Agency Requirements!'

Identification Number: DE-AC30-06BW05001

I. .Identifieation of the ngency md contractipg activity, The U.S. Department of Energy, Office of Environmental Management,' Portsmoutblfaducab Project Office (PPPO) proposes to modify contract DSAC30- O6EW05001 on a basis of ot&r than full and open competition, . 2. The nature andlor description of the action being ~pproved, The PPPO intends to non-competitively extend contract DE-AC30-OBBW05001 with Paducah ~cmediation Services, LLC (PIG) which expires on September 30,2009 to allow fox the continuation of remediation activities at the Paducah Gaseous Diffusion plant site (PGbP) for a period of nine (9) months beginning October 1,2009, The contract type will be cost-p1us;incentive fee. The anticipated value of the contract extension is , . Work under the proposed PRS contract extension will be tracked'separate from the work awomplished under the original Ward.

A review of the background of the PRS remediation contract establishes that on January 16,2004, the PPPO issued competitive Solicitation DE-RD24-040H20179 for remediation activities at PODP. After &luation of the proposals, the PPPO awarded the remediation contract to PRS, Contract No. DE-AC30-06EW05001, on December 27, 2005 (on a best v.alue basis.aad as a snrsll business set-aside). The primary purpose of the contract is to remediate and disposition specific peas on the PGDP sib. 'I36 period of peaorhame for the PRS remediation contract is December 27,2005 through September 30,2009. The acquisition process for the fallowon mediation proc-nt commenced on Iunc 26,2008 which is the date,that a Source Evaluation Bomd (SEB)

Pagelofll was established to oversee the competitive process. The SEB issued a Requat for Proposals (RFP) on January.16,2009 and proposals were received on M&h 31;2009.

Due to the complkxities of the scope of work involved and the time necessary to @om the ewluadons of the proposals, it is nbt anticipated that an award will be made before the Funent PRS contract expires (September 30,2009). The Request for Proposal issued for the follow-on contract states that the government intends to conduct

.. dissions with those contracton whose proposals fdl-withiithe competitive mge. - . : - - - -. . - - - .

The acquisition schedule provides for completion of evaluations in February 2010 and then the follow-on contract.award in May 2010.

Tlie conh-act extension is to continue remediation and disposition of specific areas at the PGDP (Jand sites and groundwater) by removing legacy waste, performing facility decontamination and decommiseionipg @&.I>), and operating the site waste storage facflities in ac&rdance with all the agpIicable laws, regulations, permits, agreements, and DOE Directives and Orders. The contract extension (which includes American Recovery and Reinvestment Act (ARRA) funded scope) supports ARRA objwtiw by creating or retaining jobs and reduces the lift cycle costs associated with environmental remedimtion efforts at Paducah. The uncompleted ARRA funded scope will be trmitioned to thc Paducah follow-on contract. Expenditures and activities under A R M are to commence as quickly as possible with prudent management. Tha decision to use the existing contract alIows for i&ediate start of work, Whereas, rhe issuing and awarding a new contract ' could take a year or longer which negates the intent of ARRA to stimulate the economy immediately. The uncomplcted ARRA funded scope will be transitioned to the Paducah follow-on contract.

The following &ks will be funded by the ARRA and must be mmPieted during the period,of the extension: . .

The following tasks will be h d e d by the ARW and must be completed during the period of the extension:

(2-410 Feed Com~Iex: Accelemb stabilization and pdat lon of di 11 intend .

process systems (6.8. UF6, UP4, uranim od&, NP, flusnine); complete 70% of dismantlement a d removal of process equipment and support systems; and.

complete the disposal of wastes gmerated 90-days prior to the end of the contraot extension.

' (2-340 Comylq. The work proposed to be d e d at the C-34O.Complex will .

include completion and regulatory approval of the Engineering Evalu~tiodCost .

hdysis and Action Jvlemorandum, and submittal of the bl Removal Action Work Plan to suppolt the D&D approach and structural demolition of the C-340 .

Complex; complete accessible asbestos removal; demolition of C-340-D, C-340- E, and Office ares; stabilization and passivation, and removal of the systems on .

the following floors of G340-A (hund, Sixth,md Semth); and disposal of wastes generated 90-days prior to the and of the contract extension.

proposed to be added will include Engineerlug Evafuation/Cost Analysis completion and submittal ofthe Dl Removd Action suppart the D&D approach and structursl demolition completion of loose materials removal, piping removal; completion of 50% of. .. -equipment removal (includes awa!ks, adders.

D&D work activities in the three (3) facilities to perform ARRA work will accelerate to result in life oycle.cost 8avings life cycle costs for cleanup of the site may be reduced by $233M (escalated) through acceleration of work scope utilizing stimulus funding. ,The life cycle savingscan be athjbuted.to such activities as h e ~yduction in maintenance costs, and safegutads and semity.

Additionally, the Oovernment will be able to immediately begin to reduce its environmental footprint.

The contract extension dl1 allow tnvimnmental remediation activities which reduce poteatial health risks tb the public to continue at the Padtlcab site until completion of the on-going, follow-on procurement DOE anticipates award will be made in the 3* qwlw of Fiscal Year 2014 as published on the DOE Acquisition Forecast wabpage. Purther, the additional jobs and reducing

3, A Dascription of the SuppUes or Service3 Required to Meet the Agency's Needs Including the Estimated Value:

The Office of Environmental Mmagkrnent (EM) was created by Congressional mandate in 1989 and is responsible far clemup and legacy wade management activities at DOB sites. The objective of the DOE EM program is to restore contaminated sites'to a state protective of human health and the envimnrnent. In order to meet the EM objective and the needs of DOE, the following e n m n t a l remediation services.at the PODP are contemplated as part of the contract e x d o n , . Groundwater t3wironmental ~ctions - he t h e m a s associated with thcgroundwater remediation initid response project are: Source Control, Plume Containment, and Oroundrrratkr S i AssessmMts.

a r i d Dispositioir - The thee pimaty areas associated with the materia18 -disposition project are: Scrap MetaI, Department of Enetgy Material Storage Areas, and Waste Disposition and Waste Facility Operations.

Page 3 of 1 1 r Facilities Disposition - The three facilities disposition areas me: D&D of C- 41 01420 Complex, Inactive Facilities, and surv&'illance and maintenance of the C

340 complex.

. Soils; The three Soils arms associated with the proj'ect are Offdte Soil Remedistion - NoMSouth Diversion Ditch, Section #, 4, and 5; Sediment Cont&t, end Soil and Rubble Piles, . '

. . :'". ' WaskBs@al Optioni'Proj~ct Pl&i@'-;'.Req~ieg &mpletian fa Dl .hcord . -of Decision. Polychlorinated BiphenyIs PCBs) Activities - The clm-up and 'disgoeal of PCB spills and leaks and maintenance of PCB collection bough systems in C 3 ~ o ~ D i m o n Plants is an ongoing activity.

r Environmental Monitoring and Repodng - This ongoing activity require9 the Contractor to perform environmental monitoring of on-site and off-ste air, soils, and water, and to report resuits to DOB and regulators.

~roj&t support - Thh ongoing sotivity the ~ontrsctor'to provide project supprt necessary for the successfbl accomplishment .of this effort.

r Work to-be covered by the ARRA as discussed in Section 2 above

The estimated value of the remediation contract extension is " . The esti,mated vdue is based on the Independent Government Cost Estimate (ICE) along with the near term base1 ine velidated by .mce of Engineering and Constnrction Management (OECM), and thic out-year baselhe reviewed for reasonableness by OECM, me funding profile includiag.the types of funds to be utilized is.as follows:

4. Stahrtory'Autbo~

The statutory authority permitting other than full end open competition Is the Competition in Contracting Act, 41. U.S.C. 253 (cX1) as implemenkd by FAR 6.302-1 which authorizes other than full and open completion 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 the Agency's requirements.

Project Breakdown Structure .

PA-0040*

, PA-0013

; PA-0011

.5. Proposed Contmctor's Unique Qualifications or the Nature of the Acquisition Requirtng Usc of the Authorfty Cited:

Dollars -

PRS i s uniquely qualified to p v i d e sekicos to the PPPO at the Padwnh site baaed on the ffllowirrg:

* $33,600,000 is ARRA funding

a) PRS has extensive experience in environmental remediation servicea involving

(I) groundwater environmenM actions, (2) material dispositfon, (3) facilitia disposition, (4) soils, (5) dep!eted uranium Hexafltloride cylinder management,

(6) waste. disposal options project planning, (7) eavhnmental monitoring and reporting, (8) project support, and Q) specific work relating to the C410 Feed Complex, C-340 Complex, and C-746 A West End S m t k (this experience can

"be used on'the C-746-A East End Smelter). -PRS .personnel possess distinctive . - - . -skills in the environmental remediation activities described h&. PRS personnel 'also possess the quati6cations to rcmediate and disposition legacy waste, perform facility D&D activities, and operate the site waste storage facility in accordance with all applicable laws, regulations, and DOE direciives, These q ~ c a t i o n s are essential to the DOB's ability to continue to fulfill its obligations unda the Office of linviromental Management's (EM) Congressional mandate to clemp DOE sites and manage disposition of hgaoy waste. This extension for a period of nine (9) months will provide a sufficient period of time to transition to a new contractor.

b) DOE is currently pkjcctiag award dthe re-compete in the 3d4mfer of FY 2010. Awarding an interim contract cannot be accomplished prior to the current expiration date of theexisting contract, Even if it could, doing so would mean that the remediation work at the Paducah site would have to stop, thus increasing the environmental risks to the general public aad delaying work under the ARRG Additionally, award to an interim contractor would cause substantial duplication of cost to the Government that would not be recovered through competition due to the duplication of effort p-ng to safety bash documentation and pegulatory documents as discussed below, PRS is uniquely qualied to carry on thii work through a nine (9) month extension because it already has the management structure and correct mix of skilled workers In place to fulfil1 the requirements for continued remediation support

c) PRS has approved safety basis documentation in place. The documents jncluded in the approved safety basis include Documented Safety Analysis (DSA), Tmbical Safety Requimments P R s ) for the Category 2 Nuclear Facility (C- 41 W420 Con1p1e-x) emd kcility hazard analyscs for tlte Radiological facilities (C- 340 Complex and C-746-A East End Smelter). These documents are developed for each individual facility or group of facilities based on the specific hazards associated with the facility, d to the extent pmsible, planned activities w i t h that facility. Changes is feoility use, qptities of hemdous derials, equipment, and work activities within the hil i ty require a reevaluation (Unresolved Safety Question DetcmiWi~ far Category 2 fdlities or Un-reviewed Change Datemination for Radiological facilities), Based on current practices at Paducah aml for uncomplicated uhanges (e.g. routine revisions, .

addition of single units of eqipment or hazardous mamials), these doouments can t ~ i t x l l y be revised and approved In approximately 2 months. Dmebpment of new documents or revisions due to significant or complicated uhanges (e.g.

.--. d - - - . ' multlple new hazards, change to a d t y system such as Criticality Accident Alatrm Syslem) could require a significantly 16- perlad of time (up to 6

. . months]. Remediation work and waker safety during this time could be adversely impacted, There is a strong likelihood that some of the safety basis documentatian WOUM not be comp1eted during this inkrim period and the process

. for some docuntcnk would have to be started again with the follow-on dontractor.

" PRS Is the.on1y contractor with the structure iaplace at Paducah to.conhue this -. ..

works without interruption, during the interim period.

d) DOE risks losing contr~ctor personnel with critical skills dueto ladof job . stability if there is a break.ln conmct period or if the sitmtion in Paducah k

. perceived as being temporaiy in nature due to contract chum, in, award to an interim confractor followed closely by award to the follow-on contraator. This will, have an adverse aHst on the remediation and work. Hiring of equally qualified individuals may be dtlected as the number of ARRA projects being implemented across the DOE complex is expected to result in a limited pool of skilled personnel from wbioh new contractors can draw,

e) PRS is uniquely qualiAed to continue the D&D work at Paducah on an un-intempted basis because of the close working relatianship it, dong with DOE, has dmloped witb the Keneky and United Stated Environmental Protection Agemy (US. EPA) representatives for the site over the past 3 years. PRS has a thorough understanding of the D&D approach. They also understand the particular issues ~ n d concerns that the regulators have that still must be addressed for the DBtD to prrooeed in a manner that will support the ARRA schedule for work accompliehment. A new cmtmchr coming In will have a large learning cum to reach a similar level of understanding, and while this can be accomplished, it could result in signjficant schedule delays that could jeopardize the Ampletion of these projects on Gme.

h addilion, the following site pennits would haw to be replaced to ensum continued compliant operation if PRS doe$ not conlinue work under a contract extension.

. - PRS is a ck-signato~y on the sibwide Kentucky Pollutant Mscharge Elimition System (KPDES) Permit. The KPDES is managed by the

. Kentucky Department fbr Bnvironmental Protection {KDEP), Kegtucky .

Division of Weter and allows, with a a t , the discharge h government fadities and similar into surhx watem. The KPllES P d t wuld be transfmed within ap$rcadrnably 3 months upon award to a new contractor. However, it would have to be transferred again upon award of the follow-on contract thus causing expense with no benefit to the Government.

- PRS is named as the operatpr on the p d t for the C-7464, C-746-S, and C-746-T Landfills. The Landfill Pennit is management by KDEP, Kentucky Division'of Waste k g e r n e n t and allows the receipt of sanitary waste and waste meeting authorized liinits geIE1;~bed at the sik to be disposed. The Landfill Permitwuld be Werred within approximately 3 .

months upon award to a new contractor. However, jit would have to be

' trasfened again upon a w d of the follow-on contract thus causing . . . . .-. . - - . ' expense with no benefit to the Cbvemment,

- PRS is &o-signatory with DOE on the Resouroc C o n s d o n and ~ecovery Act (RCRA) Part B.Pmlt. The RCRA Pm B Permit allows the Paducah site to s t o ~ hamdous waste. In order to obtain a RCRA Part B Permit the Kentucky EPA would evaluate and determine conbactot key personnel and their rmord of environmental comp1iance. The RCRA Part B Permit is a Class 3 Modification and could be obtained in approxhteIy 365 days of award to new contractor.

- PRS is certified by Nevada Teat Site (WS) to genemte aad dispose of waste at NTS. The NTS Program Certificati~n'allows the ~aducah site to g e n e and d i s p o ~ of low-level waste meeting the NTS Waste Acceptance Criteria (WAC). In order to obtain the NTS Program Certification, the eontractor would be required to provide a celtificudon package including all n&essaty documatation to me& the sites WAC;

This certification could be obtained wfthin 6 months to 1 year of award to. -new contractor.

f ) ~ssuance of a contract extension will prevent labor wbrkibrce disruption and DOE incurring additional costs.associated with severance, re-training and rec~itrnent.

6. A Desdption of the Efforts to Ensure that Offers were Solidted mrn se Many Potential Sources as is Practicable.

%S is the only ~ovlco~ossos&g the unique oapabilttibs to complete the wntemp!ated scope of work within the required timehe. Therefore, no additional sources will be .

solicited for this modification. W E issued a synopsis on June 11,2009 stating the intent to izsue a sole s o w e modification to extend the period of performance uade DEAC30- 06EWO5001 witb PRS. This synopsis addressed the work desorlbed above as ARRA effort. Although the synopsis was not a formal requwt'for proposals or invitation for bids interested parties were afforded an opportunity to lespond within fifteen (15) days. No responses were received.

7, A Determination by the Contracting O&er that the Anticipated Cast ta the Government wM1 be Fnir and Reasonable:

e h&cting Officer will detmdne that the pice is fair and reasonable based on cost price analysis which will.consider the Mepondeat Ctovemment Cost E$im& results, Defense Contract Audit Agency (DCAA) audit results, and the technical perf~nhed by the DOE Paducahtechdcd staffwith support fiom the

Environmental Technical S d c e s (BTS) mnh-actor. The audits and evaludions will be performed by experienced Government and contractor support personnel familiar with 'the' pl~posed scope; the .pa&& sib; and &e current capabiliti- ofpRS. ......... .' . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . i

I IS, A Dcacrlption of the MarM R~earch Conducted and the Rtaults.

The servlces to be performed dufing this extension need to conhue without disruption in order to.proteot workers, the public, and the enyiroment. PRS is the only contractor cmxently in the Paducah area capable of perfamlng the xquiral services in the required t i m e h e . ' If the services contained in this extensim are not continued, the DOE would not meet its Congressiona& mmandatc, its regulatory mandates, and it would not provide emiranmental remediation services to ensure the prptection of workersJ the public, omd the environment. Thmfbre, formal market research was not conducted to support this -modification. ,

9. Any Other Facts Supportiag the Use of Ofber Than lFnn and Open Competition.

I Rrrn~diation ofthe P ~ D P has ban the responsibility of PRS shop oontr&t sward in December 2005. Performance of the remediation activltles requires specialized wrperlise and experience which is available only through the cunent PRS employees. The PRS employees are trained and certified as required foT work on the PGDP. Addtionally, tha .

PRS staff mafntains security clearances as needed.

For these reasons, PRS is the only viable source for the performahct of remedilation work atthePGDP. '

DOE issued a synopsis on Juie 11,2009 strlting the intent to issue a sole source modification to extend the period of performance under DEAC3046EWO5001 with I PRS. No TtSponses was received.

11, 'Action? to Remove or Overcome any Barriers to Competeon Before any ~ubsecZl;eit Acquisition for the Sewtces Required:

DOIS has .issued a comp&ve request for proposal, set aside for s d - b u s W J Eor continued remediation work at the PGDP. The environmeatal mediation sawices scope .

is included in the statement of work for the rquest for proposal and resultant conkact .

which is anticipated for award h e 3rd quarter of Fiscal Year 201 0. The contemplated ~xte~sion will seme to ensure that tho DOE has suffmient time and resources netmimy to .

complete the competitive acquisition process, and e&ct asnooth transition to the successful offm, while continuing b maintain the site in a safe and secure mannzr while ensuring the protection of the worker, the public, and the envjronment, It is intended that ARRA work scope outside of the extension period covered by this .

document will be part of the hllow-on contract which will be issued on a competitive basis.

-'rho ~onmatfon contained h tbh jdficdo. for atherthan fidl a d - & competitian is I certified aqualo and.eornplete to tho best ofmy knowledgo and belief.

' I

1 I wid@ &at the fwk, and ~ p r d o f l s under my oognhnc~, which are included in / 8dsjwtlfloalion and which'fo~m a hub fort& jwuQation, m complete and accma~p.

I cert* that this justificelion is acmab and complute to the best of my know&lge a d Wef;

C o b * officer Pottsmo~aducah Project Office

, Legal Counsel:

I Contracting:

j:

competition 'Advocak

1 Head of Contrading Activity:

&as.&/$ MichaelF&ioward , +)';I. ks Date

Approval:

Z 7 2 i L a L ~ Senior Procurement Executive: c>$ Edward R. Shpmn Date Director Ofice of Pmmment and Assistance Management