Final_RFP_-_SRS_Liquid_Waste_Services_-_06-30-16_-_Complete.pdf

Savannah River Site Liquid Waste Services Section B Final Solicitation No. DE-SOL-0008913

B-1

PART I – THE SCHEDULE

SECTION B

SUPPLIES OR SERVICES AND PRICES/COSTS

TABLE OF CONTENTS

B.1 DOE-B-2012 SUPPLIES/SERVICES BEING PROCURED/DELIVERY REQUIREMENTS (OCT

2014)

B.2 CONTRACT COST AND FEE

B.3 DOE-B-2013 OBLIGATION OF FUNDS (OCT 2014)

B.4 DOE-B-2014 OPTION TO EXTEND THE TERM OF THE CONTRACT: ESTIMATED COST, FEE

AND PERIOD OF PERFORMANCE (OCT 2014)

B.5 DOE-B-2015 TASK ORDER FEE CEILING (OCT 2014) (DEVIATION)

B.6 EXECUTION OF CLINS

B.7 ESTIMATED ANNUAL CONTRACT VALUE

B.8 TARGET ACTIVITY PBI FEE

B.9 DOE-H-2060 BASE AND AWARD FEE (OCT 2014)

B.10 FEE REDUCTIONS

B.11 SMALL BUSINESS SUBCONTRACTING FEE REDUCTION

B.12 ALLOWABILITY OF SUBCONTRACTOR FEE

B.13 PROVISIONAL PAYMENT OF FEE

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B.1 DOE-B-2012 SUPPLIES/SERVICES BEING PROCURED/DELIVERY

REQUIREMENTS (OCT 2014)

The Contractor shall furnish all personnel, facilities, equipment, material, supplies, and services (except as may be expressly set for in this contract as furnished by the Government) and otherwise do all things necessary for, or incident to, the performance of work as described in Section C, Performance Work Statement.

B.2 CONTRACT COST AND FEE

(a) This is a performance based contract that includes Cost-Plus-Award-Fee (CPAF), Cost Reimbursable (CR) (non-fee bearing), and Indefinite-Delivery Indefinite- Quantity (IDIQ) type Contract Line Item Numbers (CLINs).

(b) The Contract consists of the following CLINs:

Table B.2-1 Contract CLIN Structure

CLIN CLIN Title Contract Type PWS Section

0001 Contract Transition CR (no fee) C.0.4

B a s e P e ri o d

0101 Liquid Waste Operations CPAF C.1.1, C.1.2, C.1.3, C.2.7

0102 SWPF Integration & Transition CPAF C.2.2, C.2.3

0103 SWPF Operations (option) CPAF C.1.4

0104 SDU Construction CPAF C.2.1

0105 Tank Closures CPAF C.2.4

0106 Safety Basis Upgrade CPAF C.2.5

0107 System Optimization CPAF C.2.6

0108 Liquid Waste Program Support CPAF C.3

O p ti n

P e ri d

0201 Liquid Waste Operations CPAF C.1, C.2.7

0202 SDU Construction CPAF C.2.1

0203 Tank Closures CPAF C.2.4

0204 Safety Basis Upgrade CPAF C.2.5

0205 System Optimization CPAF C.2.6

0206 Liquid Waste Program Support CPAF C.3

Base 0002 IDIQ IDIQ C.4

Option 0003 IDIQ IDIQ C.4

(c) This Section establishes the estimated Contract Cost and Fee for each CLIN. Within

Table B.2-2, the following definitions apply:

(1) Estimated Cost for each CLIN is defined as the cost to perform the CLIN agreed to by the parties at contract inception, as may be revised by modification to the contract in accordance with the contract terms. The exception is the IDIQ CLINs, for which the amount shown in Table B.2-2 reflects the maximum quantity of supplies or services the Government will acquire under the IDIQ CLINs (inclusive of any fee or profit).

(2) Available Award Fee is defined as the amount of award fee that may be earned under the Contract for each applicable CLIN.

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(3) Target Activity PBI Fee is defined as the amount of fee that may be earned for

Activity Completion Milestone Performance Based Incentives (PBIs) for each applicable CLIN.

(4) Estimated Cost and Fee is defined as the total of the Estimated Cost, Available Award Fee, and Target Activity PBI Fee.

Table B.2-2 Contract Cost and Fee

[Table to be completed by offeror and inserted by DOE at time of contract award]

CLIN CLIN Title Estimated

Cost Available Award

Fee* Target Activity

PBI Fee Estimated Cost and Fee

0001 Contract Transition N/A N/A

0101 Liquid Waste Operations

0102 SWPF Integration & Transition N/A

0103 SWPF Operations (option)

0104 SDU Construction N/A

0105 Tank Closures

0106 Safety Basis Upgrade N/A

0107 System Optimization N/A

0108 Liquid Waste Program Support N/A

Base Period – Total

0201 Liquid Waste Operations

0202 SDU Construction N/A

0203 Tank Closures

0204 Safety Basis Upgrade N/A

0205 System Optimization N/A

0206 Liquid Waste Program Support N/A

Option Period – Total

0002 IDIQ – Base TBD TBD TBD $56,000,000

0003 IDIQ – Option TBD TBD TBD 56,000,000

Total Contract Value

*Available Award Fee will include award fee and PBIs as defined in B.9, DOE-H-2060 Base and Award Fee. Additional PBIs will be defined during contract performance as part of the Performance Evaluation Management Plan (PEMP). Also, no base fee is payable under this contract.

(d) Payment of fee will be made in accordance with B.8, Target Activity PBI Fee, and B.9, DOE-H-2060 Base and Award Fee.

(e) Under the IDIQ CLIN, the Government may issue CPAF or Firm-Fixed-Price Task

Orders depending on the nature of the requirement for the delivery of work.

Payment for the services ordered and delivered shall be made in accordance with applicable contract clause addressing payment as included in each individual task order.

The minimum ordering guarantee for the IDIQ CLIN is satisfied by execution of the Notice to Proceed for the Contract Transition CLIN (0001). The maximum quantity of

B-4 supplies or services the Government will acquire under the IDIQ CLINs is $112,000,000. The IDIQ maximum value of $112,000,000 is for the full period of performance, including the base period and option period, if exercised. The performance period for the IDIQ CLIN is identified in Section F, Deliveries or Performance, and is expected to be extended if the option period is exercised.

B.3 DOE-B-2013 OBLIGATION OF FUNDS (OCT 2014)

This is a Cost-Plus-Award Fee type contract. Pursuant to the clause of this contract at FAR 52.232-22, Limitation of Funds, total funds in the amount(s) specified below are obligated for the payment of allowable costs and fee. It is estimated that this amount is sufficient to cover performance through the date(s) shown below.

[To be inserted by the Government at the time of contract award]

B.4 DOE-B-2014 OPTION TO EXTEND THE TERM OF THE CONTRACT: ESTIMATED

COST, FEE AND PERIOD OF PERFORMANCE (OCT 2014)

(a) In accordance with the clause at FAR 52.217-9, Option to Extend the Term of the

Contract, the Government may unilaterally extend the contract period of performance (as set forth in Section F, Deliveries) to require the Contractor to perform the work set out by Section C, Description/Specs/Work Statement of the contract. In the event that the Government elects to exercise its unilateral right to extend the term of the contract pursuant to this clause and FAR 52.217-9, all terms and conditions of the contract will remain in full force and effect.

(b) The Contracting Officer will consider factors set forth in FAR 17.207, Exercise of

Options, in determining whether to exercise an option to extend the term of the contract. The Government is concerned with ensuring that the Contractor’s performance meets, or exceeds, the performance requirements of the contract in a cost-effective manner. Accordingly, the Contracting Officer will consider the Contractor’s performance as part of the determination to exercise any option to extend the contract term.

(c) The Estimated Cost, Fee, and Period of Performance of each option to extend the term of the contract are set forth in Table B.2-1, Table B.2-2, and Section F, Deliveries.

B.5 DOE-B-2015 TASK ORDER FEE CEILING (OCT 2014) (DEVIATION)

(a) The fee amount, specified as a percentage, is 10% for cost-plus-award-fee type Task Orders and shall serve as the fee ceiling for all cost-plus-award-fee Task Orders issued under the contract.

(b) The fee amount for each Task Order will be negotiated and established in each individual Task Order. The Contractor may propose whatever fee amount it determines appropriate for the individual task order, provided that the fee amount as a percentage of the estimated cost of each proposed Task Order does not exceed the fee percentage ceiling for cost-plus-award-fee Task Orders, as specified above.

For cost-plus-award-fee Task Orders, the fee ceiling percentage applies to the total

B-5 of the amount proposed for award fee.

B.6 EXECUTION OF CLINS

(a) Sequence of Execution. Upon the Notice to Proceed, the Transition CLIN (0001) will be executed. Upon completion of Transition, the base period Liquid Waste Operations CLIN (0101), the Liquid Waste Operations Support CLINs (0102, 0104, 0105, 0106, and 0107), and the Liquid Waste Program Support CLIN (0108) will be executed. The base period SWPF Operations CLIN (0103) is an option that may be exercised by the Government. Option period CLINs 0201, 0202, 0203, 0204, 0205, and 0206 may be exercised in accordance with FAR 52.217-9, Option to Extend the Term of the Contract. The exercise of any option under this contract is a unilateral right of the Government. An estimated start date for SWPF Operations CLIN (0103), if exercised, is indicated in Section F, clause DOE-F-2003.

(b) The exercise of the option for CLIN 0103 is a unilateral right of the Government. The option, if exercised, will be exercised by modification to the contract within the base period of performance of the contract, and will otherwise be exercised in accordance with FAR 17.204. The Contractor is required to begin work on CLIN 0103 within 60 days of the option being exercised, provided that the Contracting Officer has provided the Contractor with a Nonbinding Notice of the Government’s Intent to Exercise the CLIN 0103 Option at least 30 days prior to the option exercise.

B.7 ESTIMATED ANNUAL CONTRACT VALUE

(a) DOE expects to obligate funding to the Contract in accordance with the estimated annual Contract value:

Table B.7-1 Estimated Annual Contract Value [Table to be completed by DOE at time of contract award based on the offeror’s proposal]

Gov’t Fiscal Year Contract Value (in $M)*

FY17 (Transition) TBD

FY17 TBD

FY18 TBD

FY19 TBD

FY20 TBD

FY21 TBD

FY22 TBD

FY23 TBD

FY24 TBD

Base Period Total TBD

FY24 TBD

FY25 TBD

FY26 TBD

FY27 TBD

Option Period Total TBD

Contract Total TBD

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* Projected FY contract value less the IDIQ maximum value. Table B.7-1 will be updated as IDIQ task orders are awarded.

(b) The above is anticipated funding only and is subject to the appropriations of Congress. It is not a guarantee that the funding will be provided or obligated in the amounts stated.

B.8 TARGET ACTIVITY PBI FEE

(a) The DOE objective under this Contract is to support the SRS Liquid Waste mission work. The primary focus of the liquid waste mission work is salt waste processing and disposition, bulk waste removal, and waste tank closures. DOE’s goal is to incentivize the Contractor to meet or exceed the Contract performance requirements, and to do so within the total estimated contract value and completion dates.

Incentives are structured to ensure a strong financial motivation for the Contractor to achieve the Contract requirements. As outlined below, there is a performance expectation for the Contractor to earn Target Activity PBI Fee based on completion of salt waste processing and disposition, bulk waste removal, and waste tank closures.

Target Activity PBI Fee will be part of the annual PEMP, and is established for CLINs 0101, 0103, 0105, 0201, and 0203 as indicated in Table B.2-2 above. Target Activity PBIs will be set forth in the PEMP for salt waste processing (C.1.1.2.2), bulk waste removal (C.1.1.2.4), and waste tank closures (C.2.4).

(b) Target Activity PBI Fee will be earned based on the successful completion of liquid waste processing activities set forth in the PWS. The Target Activity PBI Fee shall be calculated as follows for the specified Activity Completion Milestones:

(1) Base Period Target Activity PBI Fee:

(i) CLIN 0101 and CLIN 0103 – Target Activity PBI Fee

Target Activity PBI Fee for CLINs 0101 and 0103 is split between salt waste processing (90%) and bulk waste removal (10%).

(A) Salt Waste Processing (Rate per gallon)

Target Activity

PBI

Rate #1

(CLIN 0101 Total Target Activity PBI Fee Dollars + CLIN 0103 Total Target Activity PBI Fee Dollars) x 90%

42,000,000 gallons

Cumulative Base Period Salt Waste Processed (BPSWP) = the total volume of salt waste processed to date, as measured in accordance with Section C.1.1.2.2, for all years of the contract base period.

Award Periodic Volume of Salt Waste Processed (APVSWP) = the

BPSWP at the end of the award period (year or partial year) minus the BPSWP at the end of the previous award period.

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For all years or fraction of a year for which the BPSWP is less than or equal to 42 Mgal, formula #1 below will be used, after which formula #2 below will be used.

Formula #1: Annual Target Activity PBI Fee Earning Calculation: Target

Activity PBI Rate #1 x APVSWP = Annual Fee Dollars Earned

Formula #2: Annual Target Activity PBI Fee Earning Calculation: Target

Activity PBI Rate #1 x APVSWP x 125% = Annual Fee Dollars Earned

(B) Bulk Waste Removal (Rate per tank)

Activity

PBI

Rate #2

(CLIN 0101 Total Target Activity PBI Fee Dollars + CLIN 0103 Total Target Activity PBI Fee Dollars) x 10%

8 tanks

For up to and including 8 tanks (cumulative):

Annual Target Activity PBI Fee Earning Calculation: Target Activity PBI

Rate #2 x Annual Tanks Bulk Waste Removal = Annual Fee Dollars Earned

For greater than 8 tanks (cumulative):

Rate #2 x Annual Tanks Bulk Waste Removal x 125% = Annual Fee Dollars Earned

(ii) CLIN 0105 – Target Activity PBI Fee

(A) Waste Tank Closures (Rate per tank)

PBI

Rate #3

CLIN 0105 Target Activity PBI Fee Dollars

5 tanks

For up to and including 5 tanks (cumulative):

Rate #3 x Annual Tanks Closed = Annual Fee Dollars Earned

For greater than 5 tanks (cumulative):

Rate #3 x Annual Tanks Closed x 125% = Annual Fee Dollars Earned

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(2) Option Period Target Activity PBI Fee

(i) CLIN 0201 – Target Activity PBI Fee

Target Activity PBI Fee for CLIN 0201 is split between salt waste processing (90%) and bulk waste removal (10%).

(A) Salt Waste Processing (Rate per gallon)

PBI

Rate #4

CLIN 0201 Target Activity PBI Fee Dollars x 90%

26,000,000 gallons

Cumulative Option Period Salt Waste Processed (OPSWP) = the total volume of salt waste processed to date, as measured in accordance with Contract Section C.1.1.2.2, for all years of the contract option period.

Award Periodic Volume of Salt Waste Processed (APVSWP) = the

OPSWP at the end of the award period (year or partial year) minus the OPSWP at the end of the previous award period.

For all years or fraction of a year for which the BPSWP is less than or equal to 26 Mgal, formula #1 below will be used, after which formula #2 below will be used.

Formula #1: Annual Target Activity PBI Fee Earning Calculation: Target

Activity PBI Rate #4 x APVSWP = Annual Fee Dollars Earned

Formula #2: Annual Target Activity PBI Fee Earning Calculation: Target Activity PBI Rate #4 x APVSWP x 125% = Annual Fee Dollars Earned

(B) Bulk Waste Removal (Rate per tank)

Activity

PBI

Rate #5

CLIN 0201 Target Activity PBI Fee Dollars x 10%

2 tanks

For up to and including 2 tanks (cumulative):

Rate #5 x Annual Tanks Bulk Waste Removal = Annual Fee Dollars Earned

For greater than 2 tanks (cumulative):

Rate #5 x Annual Tanks Bulk Waste Removal x 125% = Annual Fee

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Dollars Earned

(ii) CLIN 0203 – Target Activity PBI Fee

(A) Waste Tank Closures (Rate per tank)

Activity

PBI

Rate #6

CLIN 0203 Target Activity PBI Fee Dollars

2 tanks

For up to and including 2 tanks (cumulative):

Rate #6 x Annual Tanks Closed = Annual Fee Dollars Earned

For greater than 2 tanks (cumulative):

Rate #6 x Annual Tanks Closed x 125% = Annual Fee Dollars Earned

(c) Target Activity PBI Fee Payments: Incentives are earned and payable annually upon the Contracting Officer’s written determination that the Contractor has completed the target activity milestones for PWS work scope in accordance with the criteria set forth in the PEMP.

B.9 DOE-H-2060 BASE AND AWARD FEE (OCT 2014)

(a) The Government shall pay the Contractor for performing this contract the base fee, if any, and any award-fee that may be earned from the available award-fee, specified in Section B in accordance with this clause and other applicable clauses of the contract.

(b) Base Fee Payment. The base fee, if any, shall be payable on a schedule specified in another clause of this contract or as determined by the Contracting Officer and subject to the following provisions. The Contracting Officer shall withhold a reserve not to exceed 15 percent of the total base fee or $100,000, whichever is less, to protect the Government’s interest.

(c) Award-fee.

(1) Performance Evaluation Management Plan.

(A) A Performance Evaluation Management Plan (PEMP) shall be issued unilaterally by the Contracting Officer for each evaluation period that establishes the criteria and procedures for evaluating the Contractor’s performance for the purpose of determining any award-fee earned. The PEMP shall include, as a minimum, the following:

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(i) Evaluation criteria linked to the contract’s performance objectives as defined in terms of cost, schedule, technical, or other contract performance requirements or objectives;

(ii) Means of how the Contractor’s performance will be measured against the evaluation criteria;

(iii) Award-fee evaluation period;

(iv) Amount of the total available award-fee that is allocated to the evaluation period, including the allocation for award-fee criteria and performance-based incentive criteria; and

(v) Methodology for application of subjective evaluation ratings or attainment of predetermined objectives to earned fee.

(B) There are two categories of evaluation criteria that may be used in determining award-fee earned: award-fee criteria and performance-based incentive criteria. Each of these categories, in general, is defined as follows:

(i) Award-fee Criteria – Evaluation criteria that are qualitative or subjective for which it is neither feasible nor effective to devise pre-determined objective criteria applicable to cost, schedule, technical or other contract performance requirements or objectives. These types of criteria require a judgmental evaluation process and allow the Government the flexibility to evaluate both actual performance and the conditions under which it was achieved.

(ii) Performance-Based Incentive Criteria – Evaluation Criteria which can be defined by predetermined, objective incentive criteria applicable to cost, schedule, technical or other contract performance requirements or objectives. Performance measurement standards contain well-defined parameters for measuring performance against evaluation criteria. These criteria may extend beyond one evaluation period when appropriate to incentivize the completion of long-term objectives.

(C) The length of evaluation periods shall be determined unilaterally by the

Contracting Officer. The evaluation periods should provide a balance between the Contractor’s ability to have sufficient performance time for the Government to evaluate; but evaluation periods should provide the ability for the Government to provide timely evaluations on the Contractor’s performance without being administratively burdensome.

(D) The PEMP shall be provided to the Contractor 1 calendar day prior to the beginning of the first and each successive evaluation period. If there is not sufficient time for the PEMP to be provided to the Contractor in the required number of days in advance of the beginning of the evaluation period, the Contractor shall not be evaluated on its performance until 1 calendar day after the PEMP is received by the Contractor. The PEMP may be revised unilaterally at any time during the evaluation period; but the revised PEMP, or

B-11 revised portion thereof, shall not be effective until 1 calendar day after the Contractor receives the revised PEMP.

(2) Performance Evaluation and Fee Determination.

(A) Monitoring Performance. During the evaluation period, performance monitors will track the Contractor’s performance in accordance with the PEMP. Interim evaluations may be provided to the Contractor to identify strengths, weaknesses and deficiencies in the Contractor's performance during the current evaluation period. At the end of an evaluation period, performance monitors will assess the Contractor's performance in accordance with the PEMP and report the results to the Award-fee Board (AFB).

(B) Contractor Self-Assessment. Following each evaluation period, the

Contractor may provide a written self-assessment of its performance to the AFB to be considered in its report to the Fee Determining Official (FDO). The self-assessment shall be submitted not later than 21 calendar days after the end of each evaluation period. The self-assessment shall address strengths, weaknesses and deficiencies in the Contractor's performance during the evaluation period. Where deficiencies in performance are noted, the Contractor should describe the actions planned or taken to correct such deficiencies to avoid their recurrence.

(C) Award-fee Board Recommendation. The AFB will consider the performance monitors' reports and any other pertinent information, including the Contractor’s self-assessment, and prepare a report for the FDO with findings and recommendations. The Contractor will be provided a draft copy of the AFB’s report and will be afforded an opportunity to identify factual errors. The AFB's draft report is not subject to negotiation with the Contractor. The Contractor will be provided a copy of the final AFB report immediately after the report is finalized.

(D) Award-fee Determination. The FDO will review the AFB’s recommendation, the Contractor’s self-assessment and other pertinent information related to the Contractor’s performance. The FDO will make a final, written determination, consistent with the PEMP, as to the amount of the award-fee earned. The FDO’s final determination will be provided to the Contractor no later than 90 calendar days after the end of the evaluation period. The FDO, AFB representative, or Contracting Officer will provide a debriefing to the Contractor on the final determination. All FDO decisions regarding award-fee are made solely at the discretion of the Government, including but not limited to, the characterization of the Contractor's performance, amount of earned fee, if any, and the methodology used to calculate the earned fee.

(3) Unsatisfactory Performance. No award-fee shall be earned if the Contractor’s overall performance in the aggregate is below satisfactory.

(4) Unearned Award-fee. Any unearned award-fee, for which the Contractor had the opportunity to earn during an evaluation period, shall not be transferred to

B-12 subsequent evaluation periods, thus allowing the Contractor an additional opportunity to earn that previously unearned award-fee.

(5) Award-fee Payment. After the FDO’s award-fee determination, the Contracting

Officer will issue a unilateral modification to the contract setting forth the amount of earned fee. Payment will be made after the modification has been issued and consistent with other clauses of this contract related to payments. The PEMP may provide for the payment of earned fee for performance-based incentives completed prior to the end of the evaluation period or provisional payments of earned fee based on established progress in meeting performance-based incentives extending beyond an individual evaluation period.

B.10 FEE REDUCTIONS

(a) All annual available fee in each year of Contract performance is subject to reductions imposed by the terms and conditions of this Contract, including, but not limited to:

(1) Section B Clause entitled, Target Activity PBI Fee;

(2) Section B Clause entitled, DOE-H-2060 Base and Award Fee;

(3) Section B Clause entitled, Small Business Subcontracting Fee Reduction;

(4) Section E Clause entitled, FAR 52.246-3, Inspection of Supplies – Cost

Reimbursement;

(5) Section E Clause entitled, FAR 52.246-5, Inspection of Services – Cost Reimbursement;

(6) Section H Clause entitled, DOE-H-2070 Key Personnel;

(7) Section I Clause entitled, FAR 52.203-10, Price or Fee Adjustment for Illegal or

Improper Activity;

(8) Section I Clause entitled, FAR 52.215-11, Price Reduction for Defective Cost or Pricing Data – Modifications;

(9) Section I Clause entitled, FAR 52.215-13, Subcontractor Cost or Pricing Data –

Modifications;

(10) Section I Clause entitled, FAR 52.219-16, Liquidated Damages – Subcontracting Plan;

(11) Section I Clause entitled, FAR 52.243-2, Changes – Cost Reimbursement; and

(12) Section I Clause entitled, DEAR 952.223-76, Conditional Payment of Fee or

Profit – Safeguarding Restricted Data and Other Classified Information and Protection of Worker Safety and Health.

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(b) The maximum fee reduction in any annual period of Contract performance is the allocated Annual Award Fee, as defined in the PEMP that can be earned in the annual period the event occurred.

B.11 SMALL BUSINESS SUBCONTRACTING FEE REDUCTION

For the purpose of implementing this Clause, the percentage goals established in the Section J Attachment entitled, Small Business Subcontracting Plan, will remain in effect for the duration of the Contract.

(a) The Contractor’s performance in meeting small business performance percentage goals in accordance with the Section H Clause entitled, Subcontracted Work, and the Contractor’s Small Business Subcontracting Plan, will be evaluated at the end of each performance period indicated below. The evaluation will be based on the small business subcontracting for each specific contract performance period.

(1) At the end of the Base Period; and

(2) At the end of the Option Period (if this option is exercised).

(b) If the Contractor has not met any or all of the subcontracting goals, and/or has failed to provide meaningful work for small businesses, the Contracting Officer may reduce the annual award fee earned for the last year of each performance period. The reduction amount may be up to 25% of the annual award fee criteria earned for the last year of the Base Period and 15% for the last year of the Option Period.

B.12 ALLOWABILITY OF SUBCONTRACTOR FEE

(a) If the Contractor is part of a teaming arrangement as described in FAR Subpart 9.601(1), Contractor Team Arrangements, the team shall share in the Total Available Award Fee and Total Target Activity PBI Fee as shown in Table B.2-2. Separate, additional critical subcontractor fee is not an allowable cost under this Contract for individual team members, or for a subcontractor, supplier, or lower-tier subcontractor that is a wholly-owned, majority-owned, or affiliate of any team member.

(b) The subcontractor fee restriction in paragraph (a) does not apply to members of the

Contractor’s team that are: (1) small business(es); (2) Protégé firms as part of an approved Mentor-Protégé relationship as identified in the Contractor’s Diversity Plan as per the Section H clause at DOE-H-2046, Diversity Program; (3) subcontractors under a competitively awarded firm-fixed price or firm-fixed unit price subcontract; or

(4) commercial items as defined in FAR Subpart 2.1, Definitions.

B.13 PROVISIONAL PAYMENT OF FEE

(a) Notwithstanding any other term or condition of this contract to the contrary, this clause applies to and has precedence over all other terms and conditions of this contract that provide for provisional payment of fee.

(b) The Contractor must notify the Contracting Officer immediately if it believes any incongruence exists between this clause and any other term or condition of this

B-14 contract that provides for provisional payment of fee. If a term or condition of this contract provides for provisional payment of fee but fails to include all of the requirements of this clause, that term or condition will be considered to include the omitted requirements.

(c) This clause conforms to the Federal Acquisition Regulation and Department of

Energy fee policy and constructs. The following definitions and concepts apply.

(1) Price means cost plus any fee or profit applicable to the contract.

(2) The terms profit and fee are synonymous.

(3) Incentive means a term or condition whose purpose is to motivate the Contractor to provide supplies or services at lower costs, and in certain instances with improved delivery or technical performance, by relating the amount of profit or fee earned to the Contractor’s performance.

(4) Earned fee for an incentive means fee due the Contractor by virtue of its meeting the contract’s requirements entitling it to fee. Earned fee does not occur until the Contractor has met all conditions stated in the contract for earning fee.

(5) Available fee for an incentive means the fee the Contractor might earn but has not yet earned.

(6) Provisional payment of fee for an incentive means the Government’s paying available fee for an incentive to the Contractor for making progress towards meeting the performance measures for the incentive before the Contractor has earned the available fee.

(7) Provisional payment of fee has no implications for the Government’s eventual determination that the Contractor has or has not earned the associated available fee. Provisional payment of fee is a separate and distinct concept from earned fee. The Contractor could, for example, receive 100% of possible provisional fee payments yet not earn any fee (the Contractor would be required to return all of the provisional fee payments). The Contractor could, for example, receive 0% of possible provisional fee payments yet earn the entire amount of available fee (it would not receive any fee payments until the Government’s determination that the Contractor had earned the associated available fee for the incentive).

(8) Clause means a term or condition used in this contract.

(d) This contract’s price, incentives included in its price, and all other terms and conditions reflect the Government’s and the Contractor’s agreement to link, to the maximum extent practical, the Contractor’s earning of fee to its achievement of final outcomes rather than interim accomplishments.

(e) Certain terms and conditions of this contract provide for provisional payment of fee for certain incentives. Other terms and conditions of this contract provide for each such incentive the requirements the Contractor must meet to earn the fee linked to the incentive. The terms and conditions of this contract that provide for provisional

B-15 payment of fee for certain incentives include for each such incentive the requirements the Contractor must meet before the Government is obligated to pay fee, provisionally, to the Contractor and for the Contractor to have any right to retain the provisionally paid fee.

(f) The Contracting Officer, at his/her sole discretion, will determine if the Contractor has met the requirements under which the Government will be obligated to pay fee, provisionally, to the Contractor and for the Contractor to have any right to retain the provisionally paid fee.

(g) If the Contracting Officer determines the Contractor has not met the requirements to retain any provisionally paid fee and notifies the Contractor, the Contractor must return that provisionally paid fee to the Government within 30 days: (i) the Contactor’s obligation to return the provisional paid fee is independent of its intent to dispute or its disputing the Contracting Officer’s determination; and (ii) if the Contractor fails to return the provisionally paid fee within 30 days of the Contracting Officer’s determination, the Government, in addition to all other rights that accrue to the Government and all other consequences for the Contractor due to the Contractor’s failure, may deduct the amount of the provisionally paid fee from:

amounts it owes under invoices; amounts it would otherwise authorize the Contractor to draw down under a Letter of Credit; or any other amount it owes the Contractor for payment, financing, or other obligation.

(h) If the Contractor has earned fee associated with an incentive in an amount greater than the provisional fee the Government paid to the Contractor for the incentive, the Contractor will be entitled to retain the provisional fee and the Government will pay it the difference between the earned fee and the provisional fee.

Savannah River Site Liquid Waste Services Section C

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PART I – THE SCHEDULE

SECTION C – PERFORMANCE WORK STATEMENT

TABLE OF CONTENTS

C.0 Savannah River Site Liquid Waste Contract Overview and Objectives

C.0.1 Background

C.0.2 Contract Purpose and Objectives

C.0.3 Description of Performance Requirements

C.0.4 Transition

C.0.4.1 Key Scope and Requirements

C.1 Liquid Waste Operations (WBS: 01)

C.1.1 Tank Farms (WBS: 01.01)

C.1.1.1 Actinide Removal Process/Modular Caustic Side Solvent Extraction Unit (WBS: 01.01.01) . 12

C.1.1.2 Tank Farm Operations (WBS: 01.01.02)

C.1.2 Waste Vitrification (WBS: 01.02)

C.1.2.1 Defense Waste Processing Facility (WBS: 01.02.01)

C.1.2.2 Glass Waste Storage Buildings (WBS: 01.02.02)

C.1.3 Low Activity Waste Disposal (WBS: 01.03)

C.1.3.1 Saltstone Production Facility (WBS: 01.03.01)

C.1.3.2 Saltstone Disposal Facility (WBS: 01.03.02)

C.1.4 Salt Waste Processing Facility Operations (post transition) (WBS: 01.04)

C.2 Liquid Waste Operations Support (WBS: 02)

C.2.1 Saltstone Disposal Unit Construction (WBS: 02.01)

C.2.2 Salt Waste Processing Facility Integration (WBS: 02.02)

C.2.3 Salt Waste Processing Facility Transition (WBS: 02.03)

C.2.4 Tank Closures (WBS: 02.04)

C.2.4.1 Heel Removal and Residual Sampling (WBS: 02.04.01)

C.2.4.2 Tank Isolation (WBS: 02.04.02)

C.2.4.3 Tank Grouting (WBS: 02.04.03)

C.2.5 Safety Basis Upgrade Implementation (WBS: 02.05)

C.2.6 System Optimization (WBS: 02.06)

C.2.6.1 Next Generation Solvent Deployment (WBS: 02.06.01)

C.2.6.2 At-Tank Cesium Removal (WBS: 02.06.02)

C.2.6.3 Dry Feed Modifications (WBS: 02.06.03)

C.2.6.4 Melter Fabrication (WBS: 02.06.04)

C.2.6.5 DWPF Operational Improvements (WBS: 02.06.05)

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C.2.6.6 Tank 48 Recovery (WBS: 02.06.06)

C.2.6.7 Technology Development and Deployment (WBS: 02.06.07)

C.2.7 Additional Glass Waste Storage Capability (WBS: 02.07)

C.3 Liquid Waste Program Support (WBS: 03)

C.3.1 Management of Standards/Requirements Identification Document Functional Areas

(WBS: 03.01)

C.3.1.1 Integrated Safety Management System

C.3.1.2 Safety Culture and Safety Conscious Work Environment

C.3.1.3 Department of Energy/National Nuclear Security Administration Radiological Emergency

Response Asset Support

C.3.2 Management and Administrative Services (WBS: 03.02)

C.3.3 Government Furnished Services and Items (WBS: 03.03)

C.3.3.1 Functional Service Agreements

C.3.4 Legacy Benefits (Pension and Post-Retirement Benefits) (WBS: 03.04)

C.4 Indefinite Delivery/Indefinite Quantity Work

Attachment 1 – Liquid Waste Process Diagram

Attachment 2 – Liquid Waste Facilities

Attachment 3 – Schematic of the ARP/MCU Process

Attachment 4 – SRS Tank Closure Regulatory Roadmap

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C.0 Savannah River Site Liquid Waste Contract Overview and Objectives

C.0.1 Background

The Department of Energy (DOE) Savannah River Site (SRS) is located in western South

Carolina, covering 310 square miles in Aiken, Allendale and Barnwell counties. SRS was constructed during the early 1950s to produce basic materials used in fabrication of nuclear weapons, primarily tritium and plutonium-239, in support of our nation's defense programs.

The SRS cleanup strategy is to eliminate or minimize nuclear materials, spent nuclear fuel

(SNF), and waste through safe stabilization, treatment, and/or disposition; reduce costs of continuing operations and surveillance and maintenance; and decommissioning facilities, as well as remediate surface water, groundwater and contaminated soils consistent with regulatory agreements and permits. The Department's completion strategy provides a comprehensive risk-based methodology to the legacy cleanup project, such as dispositioning radioactive liquid waste (LW) through vitrification of high activity waste constituents at the site's Defense Waste

Processing Facility (DWPF), using existing SRS facilities to receive, store, and disposition aluminum-clad SNF, and decommissioning all facilities not required for continuing missions.

Major activities at SRS include radioactive liquid waste stabilization and disposition projects to safely and effectively store, treat, stabilize, and dispose of approximately 36 million gallons of legacy radioactive waste currently stored in more than 40 underground storage tanks.

C.0.2 Contract Purpose and Objectives

The purpose of this Contract is to achieve measureable progress toward completion of the DOE

Environmental Management (EM) mission at SRS to process and stabilize high level waste into borosilicate glass and low activity waste into cementitious material in accordance with the requirements of a regulatory framework that includes: 1) Section 3116 of the Ronald W.

Reagan National Defense Authorization Act (NDAA) for Fiscal Year 2005 ; 2) the Federal

Facilities Agreement (FFA); 3) permits and requirements issued by the South Carolina

Department of Health and Environmental Control (SCDHEC); and 4) applicable DOE Orders and federal regulations.

The liquid waste system is divided by function into four operational sub-systems: (1) waste storage, retrieval, sludge pretreatment, salt batch preparation, and closure of underground LW

C-4 storage tanks/systems in the F-Area and H-Area Tank Farms (Tank Farms1); (2) salt waste treatment in processing facilities; (3) high activity waste treatment by vitrification in the DWPF with onsite glass storage until a disposal facility is available; and (4) stabilization of low level liquid waste in the Saltstone Production Facility (SPF) with permanent disposition as grout in

Saltstone disposal units. The Contract scope includes the future operation and maintenance of the Salt Waste Processing Facility (SWPF), currently being commissioned under another contract that also includes an initial operational period of one year.

EM mission completion at SRS involves the safe stabilization, treatment, and disposal of radioactive liquid wastes presently stored in more than 40 underground radioactive waste storage tanks as well as future radioactive liquid waste resulting from planned nuclear materials stabilization activities; operational closure of underground waste storage tanks; and deactivation of major facilities and equipment that comprise the radioactive liquid waste system. An overview diagram of the liquid waste system process is included in Attachment 1. An aerial view of the liquid waste facilities is illustrated in Attachment 2.

The major objectives of this Contract during the base and option period of performance include the following:

- Safely operate and optimize the liquid waste system. Identify, develop, and implement improved supplemental, or replacement processes, approaches, and technologies for waste treatment, waste removal, tank closure, and waste disposal that reduce program lifecycle costs, accelerate radioactive liquid waste disposition schedules, or otherwise optimize system performance.

- Support timely completion, startup and initial operation of the SWPF by fulfilling all interface responsibilities, e.g. waste transfer infrastructure, delivery of qualified salt batches from waste removal operations as feed for SWPF, and receipt from SWPF of (a) two high-activity feed streams for processing at DWPF and (b) a low-activity feed stream for processing and disposal at the Saltstone Facility.

- After the transfer of operational responsibility, operate and maintain the SWPF to process salt waste at SWPF to yield two high-activity salt streams which meet waste feed acceptance criteria for processing at DWPF and a low-activity salt stream which

The official facility nomenclature for the “Tank Farms” is the Concentration, Storage, and Transfer

Facilities (CSTF). This document uses various terms including Tank Farms, F-Tank Farm, H-Tank Farm, etc… to refer to the CSTF.

C-5 meets waste feed acceptance criteria for processing and disposal at the Saltstone

Facility.

- Operate Tank Farms to maintain a constant source of waste feed to Liquid Waste processing facilities in keeping with each facility’s capability to receive and process waste. This will include planning and staging to support a continued and uninterrupted source of waste feed to Liquid Waste processing facilities to include:

o Receive liquid radioactive waste from H Canyon nuclear material stabilization activities.

o Deliver salt waste feed, fully conforming with the SWPF waste acceptance criteria, to SWPF for processing.

o Operate and maintain the Actinide Removal Process (ARP) and the Modular

Caustic Side Solvent Extraction Unit (MCU) pending the start of SWPF operations to process salt waste from waste removal operations into two high-activity feed streams for processing at DWPF and a low-activity feed stream for processing and disposal at the Saltstone Facility.

o Deliver sludge waste feed, fully conforming with DWPF waste acceptance criteria, to DWPF for processing.

- Operate and maintain the DWPF to produce DWPF canisters at optimal sludge and salt waste loadings.

- Operate and maintain Glass Waste Storage Building (GWSB) #1 and #2 to store the vitrified waste canisters produced by DWPF.

- Operate and maintain the Saltstone Facility consisting of the SPF and the Saltstone

Disposal Facility (SDF) to process and dispose of low-level waste.

- Construct SDUs to support the continued and uninterrupted disposal of low-level waste at the SDF.

- Operationally close liquid radioactive waste storage tanks and associated facilities in support of the FFA and State approved plans.

- Operate and maintain the Effluent Treatment Facility (ETF) (also known as Effluent

Treatment Project) to process aqueous waste streams from Liquid Waste system operations and from other site operations into a form suitable for (a) release to a permitted outfall or (b) processing and disposal at the Saltstone Facility.

- Maintain an interactive program/system planning process for Liquid Waste program milestones and execution schedules including comprehensive salt and sludge batch planning.

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C.0.3 Description of Performance Requirements

This Contract reflects application of performance-based contracting approaches and techniques emphasizing measurable results/outcomes. The Contractor has responsibility for total performance under the Contract, including determining specific methods and approaches for accomplishing work.

All activities at SRS are managed by DOE EM site leadership. The Contractor shall be required to coordinate some of its activities by participating in a government-managed site integration process (including Government Furnished Services & Items (GFS&I)) to the extent necessary to ensure safe conduct of all site activities and completion of Contract requirements.

The Contractor has responsibility for managing, integrating, and executing work described in this Performance Work Statement (PWS). The Contractor shall assure that all activities are conducted in compliance with applicable environmental laws and regulations and within the parameters set forth in the following National Environmental Policy Act documents and associated Records of Decision.

- DWPF Final Environmental Impact Statement (FEIS) (DOE/EIS-0082)

- Supplement Analysis Salt Processing Alternatives (DOE/EIS-0082-SA-01)

- Final Waste Management Programmatic Environmental Impact Statement (PEIS)

(DOE/EIS-0200-F)

- SRS Waste Management Final Environmental Impact Statement (EIS) (DOE/EIS-0217)

- Interim Management of Nuclear Materials EIS (DOE/EIS-0220)

- SRS High-Level Waste Tank Closure Final EIS (DOE/EIS-0303) and its two supplement analyses (DOE/EIS-0303-SA-01 and DOE/EIS-0303-SA-02)

- Environmental Assessment (EA) for the Closure of the HLW Tanks in F- and H-Areas at

SRS (DOE/EA-1164)

- SRS Salt Processing Alternatives Final Supplemental Environmental Impact Statement

(SEIS) (DOE/EIS-0082-S2)

During conduct of authorized work scope, the Contractor shall also comply with applicable provisions of all other Comprehensive Environmental Response, Compensation and Liability Act of 1980 decision documents in effect for the site.

The PWS scope contains both operational and capital asset acquisition activities which shall be identified as subprojects. The Contract scope shall be managed using a formal decision/approval process consistent with program and project management principles. The

Contractor shall be responsible for integration and management of Contract and subproject scope. Scope performance must clearly link funding to cost reporting. A Work Breakdown

Structure (WBS) that breaks down the work scope to levels below the WBS provided in this document as Section J, Attachment J-3 shall be developed to provide for efficient program and cost management. All work is subject to the development and implementation of an Earned

Value Management System (EVMS). The Contractor shall be responsible for developing a compliant EVMS consistent with DOE-H-2024. The Contractor’s participation in the DOE

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Project Assessment and Reporting System is required for capital asset project performance reporting.

The Contractor must comply with DOE and site requirements. Requirements that have been incorporated into the Contract remain in effect throughout the term of the Contract unless, and until, the Contract or regulatory commitment is modified to either eliminate requirements that are no longer applicable or substitute a new set of requirements.

This PWS is structured such that required actions are shown directly under each section header and WBS element. Subheadings entitled “Supplemental Information” provide varying levels of detailed information on the work scope that bidders may find useful in developing proposals.

Supplemental information shall not be construed as providing work scope requirements or defining the only acceptable approach to operating a facility, system, or process.

Listed below are the performance requirement metrics for this contract during the base period of performance and during the option period.

Table 1: Contract Performance Requirements

Performance Metric Salt Waste

Processed

(gallons)

Bulk Waste

Removal

(tanks)

Tank

Closures

(tanks)

Base Contract Period 42,000,000 8 5

Option Period 26,000,000 2 2

Total Contract Term 68,000,000 10 7

C.0.4 Transition

The duration of contract transition shall be 90 calendar days. The Contractor shall transition all on-going work scope from the incumbent including existing Service Level Agreements (SLAs);

assign applicable subcontract work from the incumbent to continue under an existing subcontract; and complete workforce transition in accordance with the requirements of the

Contract. All Government-owned real and personal property currently accountable to the incumbent contractor for contract performance will be provided to the Contractor. During the contract transition period an inventory record of such property in the DOE Facilities Information

Management System (FIMS) and incumbent contractor’s personal property databases will be provided to the Contractor.

The Contractor shall establish the necessary logistical support to execute transition and shall ensure all necessary personnel, including key personnel for the Contractor, are on-site during the transition period.

At the end of the transition phase, the Contractor shall notify the Contracting Officer (CO) in writing that it is ready to assume full responsibility for the scope of the Contract.

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C.0.4.1 Key Scope and Requirements

Sections C.0.4.1.1 through C.0.4.1.9 below identify major elements necessary for transition of the Contract.

C.0.4.1.1 Transition Plan

The Contractor shall submit a Transition Plan that provides a description of all necessary transition activities, involved organizations, and transition schedule. The objectives of the

Transition Plan are to prepare for implementation of the Contract and minimize the impacts on continuity of operations. The Contractor is responsible for performing due diligence to ensure that all transition activities are identified and completed during the Transition Period. The

Transition Plan shall be submitted within 14 calendar days after issuance of the Notice to

Proceed (NTP).

C.0.4.1.2 Service Level Agreements

During the Contract Transition period, the LW Contractor shall review the existing Service Level

Agreements (SLAs) and determine whether the agreements should be revised, cancelled, or continued unchanged as required for Contract performance. Revision or cancellation of SLAs during the transition process is by mutual agreement with the M&O contractor and subject to

DOE approval.

C.0.4.1.3 Contract Performance Baseline

The Contractor shall submit a Contract Performance Baseline (CPB), including an EVMS description, for the Contract Base Period of Performance that details the work activities to be performed. The Contractor shall develop the initial CPB based on the Department of Energy

Savannah River (DOE-SR) WBS (Section J, Attachment J-3), and in accordance with the

Section H clause entitled “Integrated Work Control Systems and Reporting Requirements.”

C.0.4.1.4 Status Reports-Transition Activities

The Contractor shall provide a weekly status report of transition activities to DOE. The

Contractor shall establish routine status meetings with DOE and affected contractors to review transition activities and issues.

C.0.4.1.5 Government-Owned Property

The Contractor shall conduct a joint reconciliation of the Government property inventory with the incumbent contractor. The incumbent contractor will provide an inventory record at the inception of the Transition Period of all real and personal property for which they are accountable. The incumbent contractor and the Contractor shall perform a joint physical inventory of all LW assets during the Transition Period, after which the Contractor shall report any discrepancies to the CO and the DOE Property Manager. This information shall be used to provide a baseline for this Contract as well as information to close out the incumbent contract.

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C.0.4.1.6 DOE Safeguards and Security Survey

During the Contract transition period and prior to assuming control and responsibility for

Safeguards and Security (SAS) responsibilities, the Contractor shall be subject to a DOE SAS initial survey conducted in accordance with U.S. DOE Order 470.4B, Safeguards and Security

Program. The results of the survey shall be documented and shall form the basis for DOE authorization to assume SAS responsibilities. Upon DOE authorization, the Contractor shall assume responsibility for all applicable SAS resources, materials, facilities, documents,…