JA Cobalt (Final)Redacted.pdf

CUI//SP-PROCURE//FEDCON

Control No: Hood-2022-14

(Source Selection Information - See FAR 2.101 and 3.104-4)

Version Sep 2021

Sole Source Justification and Approval Under FAR 13.501

1. Contracting Activity: Mission and Installation Contracting Command Fort Hood (MICC-FH) White Sands Missile Range (WSMR) Branch, 143 Crozier St, WSMR, NM 88002

2. Description of Action: Survivability, Vulnerability Assessment Directorate (SVAD) requests approval for a new firm-fixed-price contract with Hopewell Designs (CAGE:

1K8W0). The requirement is for two new Cobalt (Co)-60 sources containing 11,000 Curies (+0,-15%) each of industrial grade radioactive nuclide. The request to sole source to Hopewell is based on the Nuclear Regulatory Commission (NRC) License Number 30-02405-10 amendment 35 dated 24 Nov 2021. Hopewell is an American company that manufactures the Co-60 carriers. The Government projects award for September 2022 and Fiscal Year 2022 RDT&E funds will be used.

3. Description of Supplies/Services: SVAD has a requirement for two new Co-60 sources containing 11,000 Curies (+0,-15%) each of industrial grade radioactive nuclide. Sources must be Nordion C-132 capsule with C-133 inner. The Co-60 source must be loaded into a custom welded holder called a rabbit and must pass a helium leak test. The rabbits are used in the Gamma Radiation Facility which is a unique pneumatic system used to conduct irradiation testing on items such as electronic piece-parts, subsystems, systems, and materials used in nuclear power reactors. The Government’s estimated cost is $550,000.

4. Authority Cited: 41 United States Code 1901 as implemented in Federal Acquisition

Regulation 13.501(a)(1)(ii), sole source (including brand name) under the authority of the simplified procedures for certain commercial items".

5. Reason for Authority Cited. Cobalt-60 has a half-life of 5.27 years and must be refreshed every five years to maintain full GRF mission capabilities. Due to the high risk of radiation exposure Nuclear Regulatory Commission (NRC) licensing is required. NRC License Number 30-02405-10 amendment 35 dated 24 Nov 2021, authorizes Cobalt 60 in sealed sources (MDS Nordion, Inc Model C-132 (source model C-133 inserted into a C-132 source capsule for use in a dry storage irradiator in the U.S. Army Gamma Range Facility for radiation efforts studies and the calibration of instruments. The license also authorizes Cobalt-60 for use in Hopewell Designs Model DS20-Co device for research and development as defined in 10 CFR 30.4; for performing ELDERS testing in accordance with Mil-Std-883G reliability testing of hardened systems and small electronic components; for use to calibrate survey instruments, irradiate dosimetry badges, and irradiate material samples.

The license requires that the replacement of existing GRF Co-60 sources meet the specifications as stated above or the submission and approval by Special

Version Sep 2021

Amendment justifying the use of a Co-60 source type other than which is currently licensed. This course of action could take years to get approval and is not in the best interest of the Government.

The Co-60 carriers used in the GRF are only manufactured by Hopewell Designs, Inc. Hopewell has the design and licensing from the Nuclear Regulatory Commission (NRC) to fabricate these Co-60 carriers which they provide to Nordion who in turn loads them with Co-60 for the final Co-60 source as used in the GRF. Hopewell will build the steel carriers to delivery to Nordion for delivery to the GRF with the loaded Co-60 and dispose the old sources of Co-60.

6. Efforts to Obtain Competition. A sources sought notification, W9115122RFICO60, was posted to System for Award Management along with the Statement of Work on 4 Aug 2022, there were no responses. Based on the licensing restrictions it is unlikely that the full and open competition will be used in the future to satisfy this requirement.

7. Actions to Increase Competition. Based on NRC policy, laws and licensing restrictions, there will be no actions taken to increase competition.

8. Market Research. Market researched was conducted between Feb 2021 and Aug

2022. Co-60 is a commercially available commodity, however due to the unique specifications of the Gamma Radiation Facility and the NRC license, there is only one vendor capable of supporting this requirement. The recommendation is for a Firm Fixed Price sole source contract to Hopewell Designs.

9. Interested Sources. To date, no other sources have written to express an interest.

Notices required by FAR5.201 will be published, and any quote received shall be considered.

10. Other Facts:

a. Procurement History.

Contract number: W91151-17-P-0011 awarded to Nordion, Inc (CAGE: L0392) on 22 Dec 2016 Description of requirement: Provide Cobalt-60 in licensed Cobalt-60 carrier Method of procurement: Unrestricted Contract type: FFP Period of performance: 12 Months Total awarded amount: $659,800.00 Number of Offerors: 2

Contract number: W9124Q-11-C-0016 awarded to Nordion, Inc (CAGE: L0392) on 19 July 2011 Description of requirement: Provide Cobalt-60 in licensed Cobalt-60 carrier

Version Sep 2021

Method of procurement: Unrestricted Contract type: FFP Period of performance: 12 Months Total awarded amount: $681,050.00 Number of option periods: N/A Number of Offerors: Unknown

Contract number: W9124Q-07-C-0660 awarded to Nordion, Inc (CAGE: L0392) on 12 July 2007 Description of requirement: Provide Cobalt-60 in licensed Cobalt-60 carrier Method of procurement: Unknown Contract type: FFP Period of performance:

Total awarded amount: $598,459.21 Number of option periods: N/A Number of Offerors: Unknown

b. Other Facts. Historically the contract to purchase Co-60 has been awarded to Nordion. However, Nordion is not currently inactive in System for Award Management (SAM). On 17 Aug 2022, an email was sent to Mark O’Neil asking if Nordion is willing to reactivate the registration on SAM. He responded that he would discuss with senior partners and provide a response.

NRC License Number 30-02405-10 amendment 35 dated 24 Nov 2021 is included as Enclosure 1.