JOFOC_FINAL_Redacted_-_BWCS_Extension.pdf

Justification for Other than Full and Open Competition U. S. Department of Energy (DOE) Portsmouth/Paducah Project Office

Contract DE-AC30-11CC40015 BWXT Conversion Services, LLC (BWCS)

Period of Performance Extension:

January 2, 2016 through September 30, 2016

1. Identification of the agency and the contracting activity, and specific identification of the document as a – Justification for Other than Full and Open Competition.

The Portsmouth/Paducah Project Office (PPPO), within the Office of Environmental Management, in the Department of Energy (DOE), plans to issue a modification to BWXT Conversion Services, LLC (BWCS) Contract DE-AC30-11CC40015 by means other than the use of full and open competition. This document sets forth the justification and approval for the use of one of the exceptions to full and open competition allowed under the Competition in Contracting Act of 1984 (CICA).

2. The nature and/or description of the action being approved, i.e. sole source, limited competition, establishment of a new source, etc.:

This Justification is for Other Than Full and Open Competition (JOFOC) in accordance with Federal Acquisition Regulation (FAR) 6.302-1 entitled “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements” and 41 U.S.C.

§3304(a)(1).

The base period of performance of Contract DE-AC30-11CC40015, a cost-plus award fee contract with BWCS is from January 3, 2011 through January 1, 2016. PPPO initially anticipated the award of the Depleted Uranium Hexafluoride (DUF6) Conversion Facilities contract by the first quarter of Fiscal Year (FY) 2016. The award of the follow-on contract, however, has been delayed until the third quarter of FY 2016. DOE intends to non-competitively extend the period of performance with BWCS by nine (9) months to allow for the continuance of services and award of the follow-on while DOE’s Environmental Management Consolidated Business Center (EMCBC) completes a competitive procurement for the DUF6 Conversion Facilities contract. The extension will allow for a 90-day transition period for the successor competitively awarded DUF6 Operations contract. The contract ceiling for the work that BWCS is accomplishing during the current five-year performance period is $417,833,183. The value for the nine-month extension is approximately $68,000,000.

An interruption to the services currently being provided by BWCS would compromise the mission of DOE. The cylinder surveillance and maintenance inspections would not be accomplished contrary to agreements with the State of Ohio and the Commonwealth of Kentucky. The conversion of DUF6 to a more stable form (uranium oxide) would cease contrary to the intent of Public Law 105-204. It is likely that the skilled work force would be laid off in the event of a contract interruption of more than a short period. The need to

Contract DE-AC30-11CC40015

BWXT Conversion Services, LLC (BWCS) Period of Performance Extension:

January 2, 2016 through September 30, 2016 extend the period of performance of the BWCS contract, via a non-competitive modification, therefore, exists.

3. A description of the supplies or services required to meet the agency’s needs:

The incumbent contractor provides DUF6 Conversion Facilities services that include, but are not limited to, cylinder surveillance and maintenance, surveillance and maintenance for the DUF6 conversion facilities and associated equipment, operation of the conversion facilities to convert DUF6 to uranium oxide, reuse and/or transport and disposal of the DUF6 conversion process end-products and wastes, sale of the aqueous hydrofluoric acid (AqHF) product, and other activities necessary for the success of the DUF6 conversion at the Portsmouth and Paducah Gaseous Diffusion sites. The DUF6 Conversion contractor will have the primary responsibility for operating DUF6 conversion facilities as discussed in Section 5 below and these services must continue to be performed through the transition of the follow-on contractor. DOE is committed to the safe storage of DUF6 and the steady conversion of DUF6 to a more stable oxide form through operations of the conversion facilities at the two sites.

Since the award of the DUF6 Conversion Facilities contract has been delayed, PPPO needs to extend the period of performance of the BWCS contract to allow for a continuation of these activities and the associated funding until the follow-on DUF6 Conversion Facilities contract is awarded to allow operations to continue without a break in service.

4. The statutory authority permitting other than full and open competition.

The statutory authority permitting other than full and open competition is 41 U.S.C.

§3304(a)(1), as implemented by FAR 6.302-1, “Only one responsible source and no other supplies or services will satisfy agency requirements.”

5. A statement demonstrating the unique qualifications of the proposed contractor or the nature of the action requiring the use of the authority.

The DUF6 Conversion contract was awarded to BWCS (effective January 3, 2011) following a full and open competition. BWCS is the incumbent contractor and provides fully trained and qualified personnel to perform DUF6 Conversion Facilities services. The incumbent contractor is the only responsible source that can reasonably satisfy these requirements pending award of the follow-on contract.

The incumbent contractor is uniquely qualified to continue providing the DUF6 Conversion Facilities services. To date, the incumbent contractor successfully brought Portsmouth and Paducah plants through the initial startup testing phase and into routine operations while conducting the associated surveillance and maintenance of the large cylinder inventory. The plants have been in operation under the incumbent contractor for over four years providing satisfactory performance. The contractor provides the following general services:

BWXT Conversion Services, LLC (BWCS) Period of Performance Extension:

(1.) Provide surveillance and maintenance for the DUF6 conversion facilities and associated equipment.

(2.) Operate the conversion facilities to convert the DUF6 from the inventory at Paducah and Portsmouth to uranium oxide.

(3.) Reuse and/or transport and dispose of the DUF6 conversion process end-products and wastes.

(4.) Sell the aqueous hydrofluoric acid product.

(5.) Provide surveillance and maintenance services for the cylinder storage yards.

An attempt to contract with another entity to perform DUF6 Conversion Facilities services on a short-term basis while the follow-on DUF6 Conversion Facilities contract is being completed is impracticable and would adversely affect DOE's mission. A new competitive multi-year procurement is in progress, so a new short-term contract would be of little or no benefit to the Government. It is impractical and time does not permit mobilizing an additional procurement effort in the short period remaining in the current contract. Such an approach would require transitioning to a new contractor for the nine-month extension as well for the new competitive contract. During the transition period between contracts, critical operational and security analysis and the planning required in developing and implementing security procedures, plans, and directives in support of mission requirements will be conducted. The potential changes that are likely to result from having two transitions within such a short period of time could have negative impacts on ongoing activities as well as on contractor management and staff that include, but are not limited to, the loss of expertise and historical/institutional knowledge through turnover, adverse security impacts, and substantial duplication of cost to the Government that is unlikely to be recovered through competition. Further, a contractor that would be brought in during the interim period between the expiration of the incumbent contract and the award and transition of the follow-on award would not have sufficient time to gain the necessary expertise to ensure the performance of the highly specialized services and assumption of all related responsibilities.

As the incumbent contractor, BWCS is uniquely qualified and situated to continue performing the DUF6 Conversion Facilities services over the nine-month extension without an interruption in service.

6. A description of efforts to ensure that offers were solicited from as many potential sources as is practicable. Include whether or not a FedBizOpps announcement was made and what response, if any, was received, and include the exception under FAR

5.202 when not synopsizing. Describe whether any additional or similar requirements

BWXT Conversion Services, LLC (BWCS) Period of Performance Extension:

January 2, 2016 through September 30, 2016 are anticipated in the future. (This may not be included as an addendum. It must be in the body of the JOFOC.)

In accordance with FAR Subpart 5.2, the Government synopsized a “Special Notice” of Intent to award a contract modification using other than full and open competition on August 4, 2015. There were no sources that expressed interest in this acquisition following the synopsis.

7. Cite the anticipated dollar value of the proposed acquisition including options if applicable and a determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable. When exceptional circumstances exist that require the period of performance to exceed one year, the JOFOC shall state priced option period(s) will be included and that a determination and findings is being prepared for the Senior Procurement Executive’s approval.

The value of the nine-month extension is estimated to be approximately $68 million. The Contracting Officer will consider the following evaluations to determine that the anticipated costs to the Government are fair and reasonable and to establish the cost realism of BWCS’ proposal: EMCBC Cost and Price Analysis Report, the Independent Government Cost Estimate (IGCE), Defense Contract Audit Agency (DCAA) or alternate audit agency, and the PPPO technical staff evaluations. The PPPO technical staff is familiar with the proposed work scope for DUF6 Conversion operations and with the capabilities of BWCS to perform the work.

8. A description of the market research conducted and the results or a statement of the reason market research was not conducted. Do not simply refer to the sources sought synopsis.

A “Special Notice” was synopsized on August 4, 2015, giving other potential sources an opportunity to comment on the Government’s intentions to award a nine-month extension to BWCS non-competitively. Further, it is not practical to solicit proposals for this short term extension of the current contract for the reasons already mentioned in Section 5 above.

Market research has been conducted for the competitive procurement and will be conducted for all future competitive procurements for these services. Therefore, no further market research will be performed as a means to identify additional sources for this nine-month extension.

9. Any other facts supporting the use of other than full and open competition:

No other facts supporting use of other than full and open competition have been identified beyond those found in this justification.

10. A listing of sources, if any, that expressed a written interest in the acquisition.

BWXT Conversion Services, LLC (BWCS) Period of Performance Extension:

There were no sources that expressed interest in this acquisition, following the synopsis.

11. A statement of actions the agency may take to remove or overcome any barriers to competition if subsequent acquisitions are anticipated.

There will not be barriers that will lead to restricted competition on future acquisitions for this requirement. DOE is currently evaluating proposals for the competitive follow-on of the DUF6 Conversion Facilities contract.

BWXT Conversion Services, LLC (BWCS) Period of Performance Extension:

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.

BWXT Conversion Services, LLC (BWCS) Period of Performance Extension:

Approval: