JA for Dollar Increase for North Wind -5-14-25.pdf

United States Department of Energy EM Consolidated Business Center, Cincinnati, Ohio

Justification For Other than Full and Open Competition

IDIQ Contract Number 89303321DEM000054

Environmental Remediation Services, Demolition and Removal Services of Facilities (Contaminated), Waste Management Services, and Regulatory Services

1. Requiring agency: The Department of Energy (DOE), Environmental Management Consolidated Business Center (EMCBC), intends to increase the not-to-exceed maximum value of the Environmental Remediation Services, Demolition and Removal Services of Facilities (Contaminated), Waste Management Services and Regulatory Services in accordance with Federal Acquisition Regulation (FAR) 6.303-2(d).

2. Nature/Description of action being approved: Modification P00008 will be issued to increase the estimated maximum value of services to be ordered against the Indefinite-Delivery- Indefinite Quantity (IDIQ) Contract 89303321DEM000054 from $47,000,000 to $60,000,000.

This IDIQ allows for Firm Fixed Priced (FFP) and Time and Materials (T&M) type task orders to be issued. There are no changes made to the scope of work as this modification is strictly a ceiling increase. The increase in the maximum value will allow for the completion of currently awarded tasks.

3. Description of the needs of the agency concerned for the matters covered by the contract: DOE requires the increase in the IDIQ’s maximum value of services to complete performance of currently awarded task orders. During performance of below-grade remediation of the Q-Complex located at the Knolls Atomic Power Laboratory, it was discovered that there is a significant increase in volume of contaminated soil than previously known. The need to increase the IDIQ ceiling is directly tied to the additional soil remediation required within the scope.

4. Specification of the statutory provision providing the exception from the requirement to use competitive procedures in entering into the contract: The proposed modification shall be made under the authority of FAR 6.302-1, 6.302-5(b)(4) and 41 USC3304(a)(1). Given that the current contractor North Wind Site Services, LLC has already completed mobilization and programmatic creation to support the remediation effort, sourcing a new vendor and paying for additional mobilization and process creation would create an undue cost burden to the Government. A ceiling increase to the current IDIQ would allow for completion of work currently being performed. FAR 6.302-5(b)(4) allows for the sole source of requirements to 8(a) contractors over $25 million. As this modification is being executed on an IDIQ over $25 million, this change shall be made in accordance with FAR 6.303-1(b).

5. Determination that the use of a sole-source contract is in the best interest of the agency:

DOE has contracted with North Wind Site Services, LLC to provide environmental remediation services that include demolition and removal services of facilities (contaminated), waste management services, and regulatory services for work to be completed at the DOE Knolls Laboratory in Niskayuna, NY and the Kesselring Site in West Milton, NY. The increase in IDIQ ceiling will be used to fund additional waste requirements that were unknown at the time of the award. While a new direct award 8(a) contract could be made to the current vendor, North Wind Site Services, LLC under the authority of FAR 19.805-1(b)(2), it was determined that a more efficient approach would be to issue a modification to increase the estimated maximum value of the contract in accordance with FAR 6.303-1(b). A modification to increase the estimated maximum value of the contract will save the Government substantial pre-award administrative / procurement costs and time; along with saving additional program preparation dollars if a new award would go to another Alaskan 8(a) other than North Wind. Additionally, a work stoppage caused by IDIQ ceiling limitations could create a safety hazard due to the complexities of handling such contamination.

A bi-lateral modification will be used to increase the estimated maximum value of the current North Wind IDIQ contract 89303321DEM000054 to $60,000,000 but will not alter the original ordering period of June 28, 2021, through June 27, 2026. Therefore, this modification to increase the estimated maximum value of the contract, and not compete a new award, is authorized under FAR 19.808-1 and FAR 6.303-1(b).

6. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable: In accordance with (IAW) FAR 19.806, price reasonableness for this IDIQ contract was based on an evaluation of the Contractor’s rates as they compared to the rates of the Bureau of Labor Statistics which were previously found to be fair and reasonable.

Additionally, waste disposal rates were reviewed and negotiated prior to task order award, with the additional waste identified after performance being subject to previously agreed to rates.

7. Such other matters as the Head of the Agency concerned shall specify for purposes of this section: DOE contacted the Small Business Administration (SBA), Boise District Office, Representative, Irene Gonzalez, to see if SBA would accept an increase in the estimated maximum value of this contract. The SBA approved the within scope modification in accordance with the contract terms.

I certify that the facts contained in this justification are complete and accurate to the best of my knowledge.

Martin Krentz Federal Project Director

Tad Lyons Contracting Officer

Aaron Deckard Procurement Director

Nicole Schuller Contracting Activity Competition Advocate