DEEM0005014 P00009 Maximums Increase JOFOC - FINAL.pdf

Justification for Other than Full and Open Competition U.S. Department of Energy Environmental Management

Moab Technical Assistance Contract Contract Number DE-EM0005014 with S&K Logistics Services, LLC (SKLS)

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 U.S. Department of Energy (DOE), Office of Environmental Management (EM), Consolidated Business Center, intends to issue a modification to the Moab Technical Assistance Contract (TAC), Contract No. DE-EM0005014 (to be followed by a modification to its Task Order No. 89303321FEM400236), by means of other than full and open competition. This document sets forth the justification and approval for the use of an exception to full and open competition allowed under the Competition in Contracting Act of 1984.

2. The nature and/or description of the action being approved.

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

3304(a)(1).

The Moab TAC is an Indefinite Delivery/Indefinite Quantity (IDIQ) contract in the Small Business Administration’s 8(a) Business Development Program. Time and Materials and Firm- Fixed-Price task orders may be issued off of the IDIQ contract. The total value of the services ordered to date is approximately $29.7 million (M). DOE intends to modify the current IDIQ contract to increase the estimated maximum value of the contract for continued support to EM while a recompete of the requirement is conducted. The follow-on IDIQ contracts were awarded in September 2022 to seven 8(a) concerns via solicitation no. 89303322REM000098, but its Moab task order is now not expected to be awarded until Summer 2023. In the meantime, an increase of SKLS’s IDIQ’s maximum will allow for negotiations of a task order extension under that maximum to occur. The IDIQ contract’s estimated maximum value was set at $24.5M at award, then in August 2022 a JOFOC raised it to a new maximum of $29.8M. This new JOFOC will raise it to $31.5M.

3. Description of the supplies or services required to meet the agency’s needs (including the estimated value):

The primary mission of DOE EM is to safely and efficiently address the environmental liability resulting from decades of nuclear weapon production and government-sponsored nuclear energy research. The liability of concern for this JOFOC is DOE EM’s site in Moab, Utah.

The Moab TAC provides DOE EM with technical assistance in multiple areas that the Moab Uranium Mill Tailings Remedial Action (UMTRA) Project requires, including Project Management, Records Management, Training, IT & Telecommunication, Safeguards & Security, Public Affairs/Community Relations, Property Management, Project Integration, Quality Assurance, Environment, Safety, & Health Support, Regulatory Compliance, Independent Verification, Vicinity Property Surveys, and Augmented Technical Assistance. These requirements were originally competed among 8(a) contractors and no changes to the originally competed scope will occur in the actions contemplated by this JOFOC.

As such, DOE is executing this JOFOC for timely issuance of a contract modification to ensure the continuation of crucial support to the DOE EM Moab UMTRA Project. The total estimates for all of the technical assistance required under this IDIQ contract during the extension will necessitate an increase of $1.7M in the estimated maximum value of Contract No. DE- EM0005014. This action will thus increase the estimated maximum value approximately six percent, from $29.8M to $31.5M. The increase of the IDIQ’s maximum will allow for negotiations of a task order extension that costs DOE $1.7M or less.

4. Identification of 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. Demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires the use of the authority cited.

In September 2022, DOE completed a competitive 8(a), multiple-award IDIQ source selection resulting in seven contract awards. The nature of this JOFOC’s acquisition is to increase the old IDIQ’s estimated maximum value to allow the agency to complete another competition among the new IDIQ awardees for a Moab TAC task order. The process of competing task orders among the new IDIQ awardees takes time, so the nature of the acquisition covered by this JOFOC allows that to occur. The projected award date for the follow-on Moab TAC Task Order is expected in Summer 2023. It would not be practical to issue a competitive solicitation for the additional anticipated $1.7M maximum costs of services that will be needed by the Moab UMTRA Project before that task order can be awarded. Over the life of this IDIQ, SKLS has consistently proven that it has the knowledge, expertise, and skill to meet EM’s needs in a timely and cost-effective manner. The service is performed by a dedicated team with highly involved project integration and program management functions. It is not a turnkey, universally manageable service; thus, the bar for offeror responsibility would be set too high by the circumstances of this acquisition to merit offering it for competition.

6. Description of the efforts made to ensure that offers are solicited from as many potential sources as is practicable, including whether a notice was or will be publicized as required by subpart 5.2 and, if not, which exception under 5.202 applies.

Over the next several months, DOE is working to compete the Moab TAC requirement amongst the seven new IDIQ contract holders. DOE EM understands the burden competitive acquisitions place on 8(a) small businesses and does not want to increase that burden by unwisely starting a new competitive 8(a) acquisition for Moab TAC for such a short duration and for services anticipated to cost no more than $1.7M.

7. Determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable.

This modification will increase the estimated maximum value of the current IDIQ contract with SKLS by $1.7M. The labor rates that are currently on contract were previously determined to be fair and reasonable and the option clause at the task order level, FAR 52.217-8, says, “The Government may require continued performance of any services within the limits and at the rates specified in the contract. These rates may be adjusted only as a result of revisions to prevailing labor rates provided by the Secretary of Labor.” These are escalated, competitively bid rates, as the original award was a competitive 8(a) procurement. Additionally, during the life of this IDIQ contract, SKLS has employed effective strategies to ensure the optimal use of its resources in providing crucial services to DOE EM in a cost-effective and timely manner. DOE will also review and negotiate any increases in costs under the task order.

8. Description of the market research conducted and the results or a statement of the reason market research was not conducted.

On March 8, 2023, the contracting officer posted to SAM.gov a synopsis of this proposed contract action and notice of intent to award a sole-source contract. It explicitly stated that “all responsible sources may submit a capability statement, proposal, or quotation, which shall be considered by the agency.” No response was received from industry.

9. Any other facts supporting the use of other than full and open competition, such as, when 6.302-1 is cited for follow-on acquisitions as described in 6.302-1(a)(2)(ii), an estimate of the cost to the Government that would be duplicated and how the estimate was derived, or, when 6.302-2 is cited, data, estimated cost, or other rationale as to the extent and nature of the harm to the Government.

No other facts supporting use of other than full and open competition have been identified beyond those discussed herein.

10. Listing of sources, if any, that expressed, in writing, an interest in the acquisition.

None.

11. Statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required.

No barriers exist on the subsequent acquisition for these services.

12. Contracting officer certification: This Justification for Other than Full and Open Competition is accurate and complete to the best of my knowledge and belief.

Michael J. Forsgren Date Contracting Officer EM Consolidated Business Center

13. Approval of the justification:

John P. Zimmerman Date Competition Advocate EM Consolidated Business Center