EMCBC-NY_-_Logical_Follow-on_Sole-Source_Justification_1.pdf

SOURCE SELECTION INFORMATION, See FAR 2.101 and 3.104/ CUI//SP-PROCURE

JUSTIFICATION FOR EXCEPTION TO FAIR OPPORTUNITY

Project Name: Environmental Management Consolidated Business Center – New York (EMCBC- NY) - Technical Assistance Contract (TAC) Task Order

Estimated Cost/Price of the Task Order: Approximately $9M

Authority: FAR 16.505(b)(2)(i)(C)

Type of Determination: Individual

I. Contracting Activity

United States Department of Energy (DOE), Office of Environmental Management (EM), EM Consolidated Business Center (EMCBC).

II. Nature and/or Description of the Action Being Processed

The DOE has a requirement for continued technical assistance support at the EMCBC-NY site office beyond the current, original task order’s period of performance. This is a justification for issuance of a new task order on a sole-source basis in the interest of economy and efficiency because it is a logical follow-on to the original task order. In December of 2022, the original task order’s solicitation gave all seven of the multiple-award Indefinite Delivery / Indefinite Quantity (IDIQ) contractors for the EMCBC Site TACs (awarded September 2022) a fair opportunity to be considered for EMCBC-NY’s award. The winner of the competition was Energy Technology Alliance, LLC (ETA), with an awarded period of performance from July 2023 to January 2026.

The type of work that is proposed to be performed under the logical follow-on is the same as the services currently being performed and is, therefore, consistent with the scope described in the performance work statement of the master IDIQ contract and the original task order. The logical follow-on’s estimated cost/price is approximately $9,000,000, which, when combined with all other task orders, remains within the maximum ordering quantity of the master IDIQ contract.

The estimated cost is based on historical cost of the current task order, with an inflation escalation applied. In addition, the logical follow-on will be issued prior to the end of the ordering period of the master IDIQ contract (ending September 2027). Performance on the logical follow-on Task Order will not exceed the Master IDIQ stated limit of 3 years beyond the end of the IDIQ ordering period.

III. Description of the Supplies/Services Required to Meet the Agency’s Needs

The scope of the logical follow-on is for the same work scope as the original task order.

Specifically, the requirements are as follows:

• Program and Project Management

SOURCE SELECTION INFORMATION, See FAR 2.101 and 3.104/ CUI//SP-PROCURE

• Records Management/Documentation Graphics, and Reproduction Support

• Information Technology and Communications Support

• Property Management Support

• Quality Assurance Support

• Safety and Health Support

• Radiological Protection Support

• Administrative Support

• Subject Matter Expert Support

These have been the prime headings throughout the original task order’s performance work statement for the past 2 years of performance. This support has directly contributed to the Deactivation and Demolition (D&D) of excess facilities and defueled reactors, conducted through DOE's authority under the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) to perform non-Time Critical Removal Actions or National Environmental Policy Act (NEPA) categorical exclusions.

IV. Authority Permitting a Fair Opportunity Exception

FAR 16.505(b)(1)(i) and IDIQ Clause H.41, Task Ordering Procedure, require the Contracting Officer to provide each awardee under a multiple-award contract a fair opportunity to be considered for each order exceeding the micro-purchase threshold unless a statutory exception applies. As cited in Clause H.41 at subparagraph (e)(3), though, there is a specific exception to this fair opportunity process, at FAR 16.505(b)(2)(i)(C):

The order must be issued on a sole-source basis in the interest of economy and efficiency because it is a logical follow-on to an order already issued under the contract, provided that all awardees were given a fair opportunity to be considered for the original order.

In the interest of economy and efficiency, a follow-on task order will be issued to ETA on a sole-source basis. Awarding it on this basis will allow DOE to continue all processes and relationships in EMCBC-NY’s knowledge-based economy as EM accelerates toward completion of the D&D goals. The processes managed by ETA are ongoing and require significant coordination between both internal and external stakeholders. ETA’s subject matter experts participate in multiple Integrated Project Teams (IPTs), Working Groups, and stakeholder events. They are embedded in critical discussions such as data evaluation to support environmental permit execution, field oversight, and disposal of hazardous material.

ETA performs consistently well, attaining “Very Good” CPARS ratings in quality, schedule, and management. A new contractor would come with a new learning curve in an already schedule-sensitive environment. This challenge would be poorly timed, given time sensitive commitments to both the Office of Naval Reactors and New York state.

Typically, conducting a competition often results in innovative technical approaches or cost savings for the Government. However, since introducing a new technical approach would likely disrupt the processes and relationships described above, the only other goal of a competition at

SOURCE SELECTION INFORMATION, See FAR 2.101 and 3.104/ CUI//SP-PROCURE this stage would be potential cost savings. Given that this requirement was recently competed, any investment in conducting a competition to gain cost savings would likely not provide material returns in relation to the budget due.

Stability in the workforce should avoid any delays in meeting EM’s stakeholder commitments.

Considering the processes and relationships that will be sustained via continued performance by ETA, issuing ETA a follow-on task order on a sole-source basis will be the most economical and efficient method to execute the priorities of EMCBC-NY.

V. Determination by the Contracting Officer That the Anticipated Cost to the Government Will Be Fair and Reasonable

As stated above, the work will be essentially the same under a follow-on task order with similar technical assistance work scope described in the original task order. The period of performance and value of the follow-on task order will be for 3 additional years at less than $10M. It is anticipated that there will be an increase in the annual costs for the follow-on because of escalation and emerging site needs.

Through negotiation, DOE will determine a fair and reasonable price. The original task order is a Time-and-Materials (T&M) task order. Analyses of the historical costs and trends under the original task order and similar task orders awarded under the EMCBC Site TACs will be used as the basis to negotiate prices for the follow-on work. An audit and/or cost analysis will be required ensuring all proposed costs are reasonable. The audit and/or cost analysis will review current company information to evaluate and determine price reasonableness. Ultimately, the Contracting Officer believes that the anticipated price of this follow-on order will be fair and reasonable considering the significant amount of historical information DOE has available for analysis.

VI. Other Facts Supporting the Justification

ETA's performance to date has been very good overall. ETA has done a very good job on the original task order of continuing the work from the last contract by executing efficient processes and by maintaining effective working relationships with contractor partners, with the DOE customer, and with the site’s stakeholders. The contractor exhibits continuous improvement in assigned programs which is a benefit to the government. ETA has been very flexible and able to respond quickly and positively in response to shifts in site priorities as well as changes in site conditions. To date, no significant issues have been identified in ETA’s performance.

Additionally, DOE has made every effort to enhance competition to the maximum extent possible for this requirement that is part of the SBA 8(a) Business Development Program. For reference, DOE previously decided to consolidate EM’s complex-wide Site TACs requirements into a competitive, SBA-8(a)-set-aside, multiple-award IDIQ contract. This allowed DOE to compete the existing task orders amongst the seven 8(a) IDIQ contractors, which, finally in 2022, resulted in ETA being selected as the best value to the Taxpayer for the EMCBC-NY TAC

SOURCE SELECTION INFORMATION, See FAR 2.101 and 3.104/ CUI//SP-PROCURE task order. Now, continuing performance on a sole-source basis with ETA is also in the interest of the Taxpayer through a logical follow-on task order.

VII. Actions the Agency May Take to Remove or Overcome Any Barriers to Increasing Fair Opportunity Before Any Subsequent Acquisition for the Supplies or Services

This justification for an exception to fair opportunity will be posted to the Governmentwide point of entry (SAM.gov) within 14 days of the EMCBC-NY TAC Task Order issuance for 30 days, as required by FAR 16.505(b)(2)(ii)(D).

In the future, any EMCBC-NY TAC after the logical follow-on would not be accomplished under the existing Site TACs IDIQ contracts, as the ordering periods will expire in 2027. DOE intends to re-compete the EM IDIQ contracts and will solicit these requirements subsequent to the logical follow-on using the procedures described in FAR Part 15, as was done in awarding the current round of seven 8(a) IDIQ contracts.

VIII. Contracting Officer’s Certification

I certify that this justification is accurate and complete to the best of my knowledge and belief in accordance with applicable regulations.

Tad Lyons Date Contracting Officer

DOE EMCBC

IX. Technical/Requirements Personnel’s Certification

I certify that any supporting data that is the responsibility of technical or requirements personnel (e.g., verifying the Government’s minimum needs or requirements or other rationale for an exception to fair opportunity) and which form a basis for the justification have been certified as accurate and complete.

Martin Krentz Date Federal Project Director

EMCBC-NY

SOURCE SELECTION INFORMATION, See FAR 2.101 and 3.104/ CUI//SP-PROCURE

X. Determination by Approving Official

The Approving Official determined based upon the analysis in this justification that the circumstances in 16.505(b)(2)(i)(C) apply to the EMCBC-NY TAC Task Order.

APPROVAL:

Jack Zimmerman Date Competition Advocate Environmental Management Consolidated Business Center