INPO_JOFOC_redacted_Redacted_1.pdf

LIMITED SOURCES JUSTIFICATION (LSJ)

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION (JOFOC)

Version Control Date: October 7, 2015

December 15, 2021

MEMORANDUM TO: Johnnie Baker, Contracting Officer, Office of Administration Acquisition Management Division (AMD) Operations Branch A

FROM: John C. Lane, Contracting Officer’s Representative, Office of Nuclear Regulatory Research (RES)

SUBJECT: JUSTIFICATION FOR OTHER THAN FULL AND OPEN

COMPETITION (JOFOC)

REFERENCE: Follow-on Contract: U.S. Nuclear Regulatory Commission (NRC)

Access to the Institute of Nuclear Power Operations (INPO) Industry Reporting and Information System (IRIS) Data and Records

“Source Selection Information – see FAR 2.101 and 3.104”

1. Nature and/or description of the action being approved

a. Acquisition purpose and objectives.

The U.S. NRC, RES requires a multiple-year sole source contract with INPO for operational experience (OpE) data and Internet-based access to the proprietary INPO Industry Reporting Information System (IRIS) database, associated training, if necessary, and periodic transmittals of stand-alone copies of the current IRIS data.

b. Project background.

INPO’s IRIS is an Internet accessible data system that provides extensive information on the performance of U.S. nuclear plant construction and operational activities, particularly in the areas of component and systems important to nuclear plant safety and reliability. IRIS and its predecessors, Industry Consolidated Entry System (ICES), and Equipment Performance and Information Exchange (EPIX) were developed by INPO and others to meet industry needs for a component and system level information exchange and to replace the Nuclear Plant Reliability Data System

(NPRDS).

IRIS is an important data gathering tool that has a wide variety of applications at NRC both in Office of Nuclear Reactor Regulation (NRR) and RES. Management Directive 8.7, “Reactor Operating Experience Program” directs the staff to use IRIS engineering and failure data to “identify precursors to potential core damage sequences in the areas of initiating event frequencies, system and component reliability, and common-cause failures.” IRIS also supports nuclear industry compliance with the Maintenance Rule (10 CFR 50.65) and the required reporting associated with Mitigating System Performance Index (MSPI), one of the cornerstones of the Reactor Oversight Process. In addition, the component reliability data provided by IRIS for risk-significant systems supports application of probabilistic safety analysis techniques in regulatory enforcement and oversight activities, such as the Significance Determination Process and the Accident Sequence Precursor Program.

Maintaining IRIS’ ability to continue to meet NRC and industry data needs, including emerging needs, requires cooperation on the part of both the NRC staff and INPO.

This new contract will ensure that the NRC continues to have access to the information in the IRIS system beginning in calendar year 2022 and extending through 2026.

As directed in the NRC Staff Requirements Memorandum related to SECY-97-101, “Proposed Rule, 10 CFR 50.76, Reporting Reliability and Availability Information for Risk Significant Systems and Equipment,” dated June 12, 1997, “the staff should continue to work with industry representatives to improve the content of the voluntary data. These improvements should seek to expand the voluntary program to minimize 1) uncertainty in data and 2) the use of compensatory measures to derive needed parameter estimates.” The SRM has essentially directed NRC staff to acquire nuclear plant OpE data, including component and system failure information, directly from INPO via contract.

This requirement is currently performed under contract number NRC- HQ-60-17- C-0002 which was awarded to INPO for the period of performance from 2016 through 2021.

Name and address of the proposed contractor(s).

INSTITUTE OF NUCLEAR POWER OPERATIONS

700 GALLERIA PKWY SE STE 100

ATLANTA, GA, 30339-5943

2. Description of the supplies or services required to meet the agency’s needs.

a. Project title.

U.S. Nuclear Regulatory Commission (NRC) Access to the Institute of Nuclear Power Operations’ (INPO’s) Industry Reporting and Information System (IRIS) Data and Record.

b. Project description.

The contractor shall provide:

1) Periodic transmittals of the relevant portion of IRIS for use by NRC and its contractor, the Idaho National Laboratory (INL) in the derivation and display of plant-specific and generic nuclear industry parameters and performance information relevant to risk-informed regulatory activities,

2) IRIS internet access to NRC staff and contractors, as requested by the NRC contractor officer representative (COR), via individual user identifications (IDs), and

3) To provide technical support, application documentation, and training, as needed and as requested by the NRC COR, in the use of the IRIS database system.

c. Acquisition Information.

Requirement type.

Other (specify): Operating (and Construction) Experience Data Access

Type of action.

New requirement Follow-on Other (specify):

Proposed contract/order type.

Firm-fixed-price

Statement of Work Type.

Completion Level of Effort Performance Based

Requisition number.

RES-22-0026

Total estimated dollar value and performance/delivery period

The period of performance of this acquisition consists of a base period calendar year (January 1, 2022 – December 31, 2022) and four (4) one-year options to extend the term of the contract through 2026, at a total estimated cost of $2,300,000 over five years.

3. Identification of the justification rationale.

This acquisition is conducted under FAR 6.302-1 6.302-1 Only one responsible source and no other supplies or services will satisfy agency requirements

Description of the proposed contractor(s) unique qualifications to provide the required supply or service.

IRIS is a proprietary database designed, owned and managed by INPO for exclusive use by U.S. nuclear power utilities and INPO affiliated organizations. Non-INPO member access to IRIS is granted only by written agreement and with approval of INPO member organizations. This database, and its predecessors have resided with INPO since the early 1990’s and there is no comparable database elsewhere, and therefore it is not possible to obtain the information contained in the database from any other source. INPO is the sole owner and manager of the IRIS database, which contains proprietary information required for the risk-informed regulatory oversight activities which require the creation of customized nuclear plant risk models. The plant-specific OpE information, such as, component and system failure information, is not available from any other source including licensee event reports or event notifications. It is the only source capable of providing this information.

The nature of this arrangement was formalized in Staff Requirements Memorandum SRM-SECY-97-101, wherein the Commission directed the staff to terminate proposed rulemaking and pursue a voluntary industry initiative proposed by the Nuclear Energy Institute (NEI) for data collection, in which INPO would create and maintain the data system currently known as IRIS.

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

Notification of NRC intent to negotiate this noncompetitive procurement with INPO was posted to SAM.gov on November 3, 2021 with responses due no later than December 6, 2021. This JOFOC will be posted in SAM.gov within 14 days after award.

Description of the efforts made by the Contracting Officer (CO) to determine that the cost/price of the contract/order is fair and reasonable consistent with FAR 8.404(d) or 15.406-2.

To ensure the price to the Government for these services will be fair and reasonable, price analysis will be performed by Contract Officer and a contract will only be awarded if the price is deemed and reasonable.

Description of the market research conducted (see FAR Part 10) and the results, or a statement of the reasons market research was not conducted.

The NRC cannot competitively award this requirement because use of INPO’s IRIS was directed by the Commission via SRM-SECY-97-101. Refer to 2, 4, 5, and 8 for more details.

Other factors supporting the justification, if any.

In March 1997, the NEI proposed that the NRC accept EPIX, now IRIS, as part of a voluntary industry approach for reporting reliability data in lieu of the proposed “Data Rule”. In June 1997, the Commission approved the staff recommendation to accept the voluntary approach proposed by the industry in lieu of a proposed rule (10 CFR 50.56).

The NRC staff recommendation to the Commission (SECY 97-101) estimated the present value savings to industry of the voluntary approach, as compared to rule-making, at $50 million.

The operational and equipment performance data contained in IRIS is used for activities involving research and analysis by RES, NRR including the Regional Offices, senior reactor analysts, and NRC contractors at Idaho National Laboratory who develop probabilistic risk assessment (PRA) parameters based upon the IRIS data for use in NRC PRA models.

IRIS has become an important data tool used to comply with management guidance contained in MD 8.7, “Reactor Operating Experience Program.” In particular, the IRIS database is used in the following regulatory programs:

Reactor Oversight Process (NRR) Maintenance Rule Compliance (NRR) Mitigating Systems Performance Indicator (NRR) Component & System Reliability Studies (RES) Common Cause Failure Database (RES) Reliability and Availability Data System (RES) Accident Sequence Precursor Analysis (RES) Standardized Plant Analysis Risk (SPAR) models (RES) Significance Determination Process (NRR/Regions) Risk-Informed license amendment reviews (NRR)

9. List sources, if any, that have expressed an interest in the acquisition.

None.

10. If applicable, describe the actions the agency may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for the supplies or services is made.

a. Unless modified by Commission directive, the staff plans to acquire the same operational data service from INPO in the foreseeable future as it has previously.

b. AMD will closely scrutinize future requests for renewal of NRC access to IRIS and any successor systems and will ensure that any restrictions to competition are adequately supported and documented.

11. Certifications

By signing below, the COR certifies that the justification is accurate and complete to the best of his or her knowledge and belief.

Contracting Officer Representative

John C. Lane

This is to certify that the justification is accurate and complete to the best of the Contracting Officer’s knowledge and belief.

Contracting Officer

Johnnie Baker

REVIEWED:

Branch Chief

ADM/AMD/OBA

CONCUR:

Competition Advocate