Final_Approved_Limited_Sources_Justification_and_CAP_NA28187_10.4.13.pdf

LIMITED SOURCES JUSTIFICATION

NNSA Office of Defense Nuclear Non-proliferation

Office of Fissile Materials Disposition (NA-26)

GS-23F0187P/DE-AT01-07NA28187

September 5, 2013

I. AGENCY IDENTITY AND CONTRACTING OFFICE

The Department of Energy, National Nuclear Security Administration’s Office of Fissile Materials Disposition (NA-26) plans to contract under the authority of the Multiple-Award Schedule Program. This document sets forth the justification and approval required by FAR 8.405-6 for extension of GS-23F0187P/DE-AT01-07NA28187 on a limited source basis. The contracting activity is the NNSA Contracts and Procurement Division.

II. NATURE AND/OR DESCRIPTION OF THE ACTION BEING APPROVED

This acquisition action is to modify Mele Associates, Inc. (Mele) Task Order DE-AT01- 07NA28187 to extend the period of performance until September 26, 2014 and to increase the total value of the Task Order. The current Task Order was competed amongst the Department of Energy (DOE)/National Nuclear Security Administration’s (NNSA) Technical, Engineering and Programmatic Services Blanket Purchase Agreement (BPA) holders and was awarded to Mele on April 27, 2007 with a total award value of $25,982,881. The Labor Hour Task Order end date was originally April 26, 2012. Because NA-26 was in the middle of issuing the Final Surplus Plutonium Disposition Supplemental Environmental Impact Statement (SEIS) at the time the Task Order was to expire in April 2012, the period of performance was extended on April 26, 2012 until September 26, 2013, with no change in award value. NNSA’s Office of Fissile Materials Disposition requires another extension of Mele’s Task Order DE-AT01-07NA28187 until September 26, 2014 to allow the contractor to complete the Surplus Plutonium Disposition Supplemental Environmental Impact Statement (SEIS) analysis. The current ceiling on the Task Order is $25,982,881, and there is currently $651,428.20 within the current ceiling of the Task Order, available for the twelve-month extension. The total estimated value of this extension is $1,057,135.34, which will result in a $405,707.14 increase to the Task Order ceiling price. The ceiling price of the Task Order will be increased from $25,982,881.00 to $26,388,588.14.

III. DESCRIPTION OF SERVICES

NA-26 is responsible for disposing of no less than 34 metric tons (MT) of surplus U.S. weapon-grade plutonium in accordance with existing U.S. policy, public law (Section 4306 of the Atomic Energy Defense Act, 50 U.S.C. 2566), and the U.S.-Russia Plutonium Management and Disposition Agreement (PMDA). To support NA-26 with this project, Mele will continue its prior work on the Surplus Plutonium Disposition SEIS, including completion of the Final Surplus Plutonium Disposition SEIS.

IV. LIMITED SOURCES AUTHORITY

The authority for this limited source extension is FAR Part 8.405-6 (a)(1)(i)(C), which allows for restricting competition, in the interest of economy and efficiency, if the new work is a logical follow-on to an original order placed in accordance with applicable Federal Supply Schedule ordering procedures.

V. JUSTIFICATION FOR USING THE LIMITED SOURCES AUTHORITY

At the time of the extension of Task Order DE-AT01-07NA28187, the programmatic schedule called for issuance of the Draft SEIS in April 2012, a Preliminary Final SEIS by October 2012, and a Record of Decision by March 2013, with final actions required through September 2013. Meeting these dates was critically important to the program because the SEIS is on the critical path for construction and modification of key U.S. facilities to accomplish the NA-26 goal of plutonium disposition. Critical program decisions related to ongoing construction of a Mixed Oxide Fuel Fabrication Facility (MOX Facility), a capability to disassemble and convert nuclear weapon pits into plutonium dioxide for disposition, and a Waste Solidification Building (WSB) to handle liquid waste generated from the these activities, all depend on the DOE/NNSA meeting its NEPA requirements. Mele successfully completed publication of the Draft SEIS, managed the mandatory public comment period on the Draft SEIS, and prepared a concurrence draft of the Final SEIS and its accompanying comment response document within the schedule allotted. Prior to release of a Final SEIS, the Department of Energy decided to slow down the program schedule in order to conduct an assessment of alternative plutonium disposition strategies in light of preliminary cost increases and the current budget environment. As a result, DOE/NNSA delayed the issuance of a Final SEIS. The results of the assessment, expected mid- FY 2014, may require revisions to the SEIS. However, the program has identified updates to the SEIS that need to be made immediately regardless of the outcome or timeline of the assessment.

It is estimated that from this point in the process, it will still take approximately one year to complete the SEIS, including: reviewing and revising text and the comment response document bring them into alignment with any new preferred alternative; incorporating new letters from the Defense Nuclear Facility Safety board and new environmental reports; potentially providing additional calculations and analysis; preparing and issuing the Final SEIS; collecting comments during the mandatory 30-day waiting period after the issuance of the Final SEIS and before DOE/NNSA could issue a ROD; and completion of the final Administrative Record of the NEPA action. A one year extension of Task Order DE-AT01-07NA28187 (at a projected cost of $1,057,135.34) will allow Mele to update and finalize the SEIS as originally planned.

Mele has the most comprehensive understanding of the NA-26 program as it or its subcontractors have been supporting the program’s NEPA requirements since 2007. The contractor has collected over 400 source and reference documents, performed over 10,000 calculations including more than 1,000 accident and transportation analysis calculations. Mele has performed numerous population projections for over eight different regions including three regions surrounding SRS, one region around the Los Alamos National Laboratory, and two surrounding potential reactor locations. Mele has incorporated the suggestions and comments from hundreds of comments on the Draft SEIS into the draft Final SEIS. The project team includes individuals knowledgeable of the original 1999 SPD EIS, including the former project manager. The project team members are knowledgeable about the affected sites, projects, proposed alternatives, facilities and support facilities.

Transferring the SEIS to another contractor would cause an unrecoverable schedule delay of an estimated six months. Transfer would require approximately two months to close out and package source documents, references, and all associated files. In addition at least four months would be required for the new contractor to come up to speed on the scope, alternatives and source information and history associated with this complex document. There also would be duplication of costs incurred by the DOE/NNSA for this contract transition and closeout period.

Based on current labor rates, duplicative costs could be as high as $1M. There are also significant intangibles that would be lost through a transition of contractor.

VI. CONTRACTING OFFICER DETERMINATION OF BEST VALUE

The contracting officer has determined after considering the level of effort and the mix of skills available for the tasks needed, that the proposed action represents a reasonable total price and will be the best value for the Department consistent with FAR 8.404(d). This action represents the best value to the Government in accordance with FAR 8.405-6 (a)(i)(C) in that the work is a logical follow-on to the original order placed on Task Order: DE-AT01-07NA28187 in 2007.

Retaining the existing contractor will allow the Government to meet the program’s schedule for delivery of the SEIS ROD by approximately April 30, 2013 and will save the Government duplication of costs on the order of approximately $1M.

VII. MARKET RESEARCH

DOE/NNSA has an Enterprise Wide NEPA Master Contract with seven (7) contract holders, four small businesses and three large businesses that could perform the required SEIS Analysis.

When the program issued the January 2012 Amended Notice of Intent to revise the scope of the SEIS, it delayed the release of the Draft SEIS and resulted in a scheduled ROD date that is on the MOX Facility construction schedule’s critical path. Thus, there is no contractor capable of maintaining the schedule that the DOE/NNSA must meet to release the Final SEIS and ROD, with the same cost and efficiency, other than Mele Associates, Inc.

VIII. OTHER FACTS

Facilitating a competition for the Final SPD SEIS would create a significant burden to the Government and taxpayers in schedule delays, loss of productivity, and duplicative costs for not being able to proceed with implementation of programmatic actions, as well as loss of other intangible assets (such as contractor interactions, communications with key leads at multiple sites, locations and companies). In addition, the DOE/NNSA faces legislative and financial penalties if the MOX Fuel Fabrication Facility operations schedule is not met. Section 4306 of the Atomic Energy Defense Act, 50 U.S.C. 2566 states that the DOE/NNSA could face fines and penalties of $1 million per day and up to $100 million per year if the operations of the MOX Facility are deferred such that they cannot meet a productions objective of producing 1 MT of plutonium in MOX fuel by 2018. Demonstrating progress toward meeting these legislative requirements will demonstrate DOE’s commitment to removing plutonium from South Carolina and support DOE’s efforts to either renegotiate the milestones or provide a basis for not imposing the fines and penalties.

VIII. STEPS TO FOSTER COMPETITION

This Task Order extension allows for restricted competition because it is a logical continuation of work performed under the current Task Order; however, for any subsequent acquisition of the required services, NNSA will consider competing the requirement among the DOE-wide NEPA Master Contract holders. After the award of the new NEPA Master Contract, NA-26 plans to issue a new Task Order to address any actions beyond this SEIS.