JOFOC_CTAC_HCA Approved 9.5.2024 (REDACTED FOR SAM.GOV).pdf

UNITED STATES DEPARTMENT OF ENERGY (DOE)

CARLSBAD FIELD OFFICE (CBFO)

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

FOR

CEILING INCREASE TO THE CARLSBAD TECHNICAL ASSISTANCE CONTRACT

(CTAC) 89303321DEM000063

Pursuant to the requirements of the Competition in Contracting Act (CICA) as implemented by the Federal Acquisition Regulation (FAR) Subpart 6.3 and in accordance with the requirements of FAR 6.303-1, the justification for the use of the statutory authority under FAR Subpart 6.3 is justified by the following facts and rationale required under FAR 6.302-1 “Only one responsible source and no other supplies or services will satisfy agency requirements” as follows:

1. Identification of the Agency and Contracting Activity.

U.S. Department of Energy, Office of Environmental Management, Carlsbad Field Office (CBFO), Budgets and Contracts Division

2. Nature and/or Description of the Action Being Approved.

This justification supports the increase in the ceiling of the existing single-award Indefinite Delivery, Indefinite Quantity (IDIQ) Contract No. 89303321DEM000063 held by Navarro Research and Engineering, Inc from $100,000,000 to $165,000,000, an increase of $65,000,000. As background, the competitive Request for Proposal (RFP) was issued on October 29, 2020, and the contract was awarded on July 1, 2021. Section F.3 of the contract includes a five-year ordering period with allowance for task order performance up to three additional years within the anticipated maximum value of $100,000,000, which was envisioned to cover more than five years of performance. This increase will accommodate task orders that may extend up to three years beyond the end of the IDIQ's ordering period on June 30, 2026. The ordering period from July 1, 2021 to June 30, 2026 remains unchanged, and this increase does not change the type of work required. This increase reasonably increases the maximum contract value to allow for the continuation of vitally important services during the current contract ordering period until such a time where DOE will reasonably begin the next competitive contract for CTAC services.

Contract Overview Component Details Current IDIQ Ceiling $100,000,000.00 Proposed Ceiling Increase $65,000,000.00 New IDIQ Ceiling $165,000,000.00 Total Value to Date $82,980,425.32 Remaining Ceiling (Current) $17,019,574.68

Justification for Other than Full and Open Competition Navarro Research and Engineering, Inc.

89303321DEM000063

3. Description of Supplies or Services Required to Meet the Agency’s Needs.

The Waste Isolation Pilot Plant (WIPP) site is a deep geologic repository mined in salt beneath the Chihuahuan Desert of southeastern New Mexico and is the final disposal destination for 6.2 million cubic feet of stored and newly generated defense-related Transuranic (TRU) waste from DOE generator sites around the country. WIPP’s mission is to safely characterize, transport, and dispose of this radioactive waste.

CBFO is responsible for ensuring safe and efficient characterization and certification of TRU waste at DOE sites; transportation activities associated with TRU waste; and management and operations administration at WIPP in accordance with applicable safety, health, security and environmental standards, laws, and regulations and other DOE orders. CBFO is directly responsible for the management and integration of the National Transuranic Waste Program (NTP)—which includes all of the TRU waste generation and storage sites together with the WIPP Site.

CBFO is also responsible for the integration of the various program participants including the integration of activities related to the day-to-day management of the WIPP facility and oversight of the management and operating (M&O) prime contractor and other CBFO contractor activities. CBFO plans and manages related functions including but not limited to:

modeling and experimental efforts in support of compliance recertification; TRU waste characterization and certification processes; program planning, scheduling, and budgeting;

and integration of all WIPP activities for program participants.

To support its mission, CBFO requires continued contractor support for technical assistance of ongoing and expanded missions related to the WIPP and the National TRU Program. This includes support to ensure regulatory compliance, certification audits of waste packaging at generator sites, preparation and follow-up on these audits, oversight of capital asset projects, and management of increased security measures and experimental activities. The scope also covers the integrated project management baseline and federal site life-cycle estimates previously managed by M&O contractors. The Carlsbad Technical Assistance Contract (CTAC) currently supports 31 separate labor categories with 100 personnel working under one active task order 89303222FEM400017.

4. Statutory Authority Permitting Other Than Full and Open Competition.

10 U.S.C. 2304(c)(1) as implemented by FAR 6.302-1, “Only one responsible source and no other supplies or services will satisfy agency requirements.”

5. Demonstration That the Contractor’s Unique Qualifications or the Nature of the Acquisition Requires Use of the Authority Cited.

Over the course of the current CTAC contract ordering period, there has been a significant transformation in operational and staffing dynamics, driven by both external and internal factors. The remote location of Carlsbad, New Mexico has made it extremely difficult to maintain federal staffing levels leading to a drastic decline in federal staff, while simultaneously spurring a substantial increase in the need for CTAC contract personnel. The evolution of the CTAC contract demonstrates how contract staffing can be leveraged to maintain operational continuity and access specialized skills, especially in challenging recruitment environments.

To prevent possible implications for operational efficiency and effectiveness, Navarro collaborates with other contractors on critical asset projects at the WIPP. These high visibility projects include the Safety Significant Confinement Ventilation System (SSCVS) and the Utility Shaft (US). These long-term projects were initiated prior to the current CTAC award; however, Navarro participates in essential tasks such as: observing, monitoring, and conducting oversight of all Quality Assurance functions related to the nuclear safety significant construction; monitoring all construction activities (fire protection installation, electrical work, building and infrastructure concrete pours, etc.); reviewing nuclear safety basis documentation and developing the draft Safety Evaluation Report (SER); and preparing and coordinating external DOE Headquarters (HQ) reviews and the pending Readiness Assessment. In addition, Navarro documents the performance of the M&O contractor and its subcontractors to assist CBFO with their performance evaluation. Navarro is providing the primary oversight for start-up, commissioning, and readiness activities that once complete will ensure the proper transition of the SSCVS to full operation.

Navarro’s support provides the CBFO leadership with expert recommendations, enabling informed decision-making on complex technical issues which in turn maximizes operational efficiency and leads to an optimal utilization of resources. As WIPP continues to operate and evolve, new challenges are arising. Some disruptions that could occur if a ceiling increase was not accomplished could be:

• Potential inability of Site Generators to maintain certified waste in the shipment queue which could potentially force a WIPP shutdown or reduction in force.

• Halt of most development work on the WIPP Lifecycle Baseline which documents the life of WIPP to 2050 and beyond. The work also will incorporate the shipment needs of each Generator Site such that the DOE EM Complex will be able to make funding and operations decisions that are strategically best for the entire complex vice what is best for just one Generator Site.

• A significant slowdown of all nuclear safety basis approvals for the WIPP site due to CBFO having only one Federal employee able to conduct such oversight and review.

Currently, Navarro’s Program Manager and their nuclear safety support employee have the highest level of experience with the WIPP nuclear safety basis and were the primary coordinators/managers/developers of the WIPP Safety Basis.

• Loss of progress in the electronic development for documentation, correspondence, and records due to a significant reduction of corporate reach back expertise that has been integral in the design and testing of the systems developed by Navarro.

By increasing the contract ceiling, CBFO will be able to utilize the current contract ordering period as intended for performance for up to eight years without compromising critical projects that would cause mission delays.

The retention of Navarro’s specialized expertise and performance are critical to the success and continuity of ongoing projects on CTAC. Navarro has been integral in the development and implementation of critical compliance and oversight mechanisms that are tailored to the unique environmental and safety challenges of waste isolation and management as described above.

Transitioning and onboarding a new contractor mid-project before the completion of the milestones discussed above would likely lead to significant loss for the government of specialized knowledge and skills, thereby disrupting project continuity and efficiency.

Moreover, concluding the current contract prior to eight years as intended would likely lead to mission critical delays. In addition, not increasing the ceiling could lead to a general lack of organizational structure at the site while the new contractor is transitioned to managing the Performance Work Statement elements. New contractors often bring different processes and methodologies as well as a steep learning curve, which could cause delays and require additional training, impacting project timelines and increasing costs. By having a consistent contractor such as Navarro that was intended to work up to a maximum of eight years, DOE will ensure ongoing efforts and projects are met and delivered on time without jeopardizing mission success.

6. Description of Efforts Made to Ensure That Offers Are Solicited from as Many Potential Sources as Practicable.

A Notice of Intent was posted to SAM.gov on July 25, 2024, with responses due August 9, 2024. Two inquiries were made via email response to the Contracting Officer.

Response One: An inquiry sent by email on July 27, 2024 requesting the scope of work to which the Contracting Office provided a response on July 29, 2024 with a link to the WIPP FOIA – Current Contracts. No further inquiry/proposal was sought by the respondent;

therefore, the respondent was not deemed a responsible source for this action.

Response Two: A capability document was sent by email on August 8, 2024. The Government provided a response to confirm receipt on August 9, 2024. The respondent provided a 14-page document describing current projects that they are either the primary contractor or subcontractor on for DOE. The respondent itemized the parts of the CTAC Performance Work Statement and compared their experience for reference. Although respondent two provided similar capabilities, the nature of the critical projects at this time warrant the incumbent contractor to carryout and finish the crucial projects at this time without significant degradation of service, therefore, the respondent is not deemed a responsible source for this action.

In summary, the Notice of Intent posted on SAM.gov generated inquiries from two respondents, each providing interest within their responses which the Government considered. The first respondent’s request was promptly addressed; however, no formal capability briefing was submitted to evaluate. While the second respondent provided comprehensive documentation to demonstrate their capabilities and past performance with https://wipp.energy.gov/foia-current-contracts.asp https://wipp.energy.gov/foia-current-contracts.asp

DOE projects, they would be a good candidate when DOE re-competes the effort, however, for this specific action, the current critical projects and timelines are so crucial that the incumbent must complete to avoid any degradation to the current services. In accordance with the exception of the Competition in Contracting Act, the incumbent is the only one responsible source able to meet DOE’s requirements for this specific action.

7. Determination by the Contracting Officer of the Fair and Reasonable Cost

The Contracting Officer determined at the time of contract award that Navarro’s prices were fair and reasonable based on competition and comparison with historical unit costs previously awarded. Given that $82,980,425.32 is the current contract ceiling under all the task orders, the projected annual burn rate, and the anticipated issuance of one or more task orders that may extend up to three years beyond the IDIQ’s expiration, an increase in the ceiling from $100 million to $165 million is determined to be both fair and reasonable based upon the already negotiated Direct Productive Labor Hour (DPLH) that have been in place for each period since the inception of the contract.

8. Description of the Market Research Conducted

Extensive market research was conducted by the Environmental Management Consolidated Business Center (EMCBC) during acquisition planning prior to the award of the current contract. Transitioning to a new contractor prior to the full period of performance due to ceiling limitations could jeopardize the continuity and effectiveness of ongoing capital projects and lead to interruption and degradation of ongoing WIPP operations. As mentioned above in section 6, a Notice of Intent was also posted to SAM.gov to identify current interest/capabilities in the CTAC requirements.

9. Any Other Facts Supporting the Use of Other Than Full and Open Competition

Insufficient Current Ceiling Relative to Task Orders' Duration: The original ceiling of $100 million was anticipated to take the requirements for a total of up to eight years. A five-year ordering period with the ability to issue one or more task orders on/before the end of the ordering period up to three years as outlined in section F.3 (c) of the contract stating “performance on all task orders issued before the end of the contract ordering period shall not exceed three (3) years beyond the end of the contract ordering period.” Due to the ever-changing and increasing requirements, the burn rate (see graph below) is far exceeding what was originally anticipated. Currently, the Government is in Year 4 of the contract, and the total current value is $82M+ for the two task orders issued. To use the full potential of the period of performance, the customer is requesting an increase of $65M to the contract ceiling. Below is a table depicting the total number of Task Orders issued and their value to date.

Task Order Number Period of Performance Value

89303321FEM400223 08/01/2021 – 03/31/2022 $9,681,104.80

89303222FEM400017 04/01/2022 – 03/31/2025 $73,299,320.52

Total $82,980,425.32

Burn Rate Analysis: The current expenditure rate indicates the original ceiling will be exhausted during year six (highlighted in orange below) of the performance period. The average annual burn rate is estimated at approximately $22.5M, which substantially exceeds projections. Based on current spending trends, the $100M ceiling is estimated to last only through part of Year 6

Note, these numbers are based on current spending. The Task Order performance periods do not align with the IDIQ's overall performance period of 6/30/2029, thus, the chart above indicates Year 8 ending on 3/31/2029 versus IDIQ ordering period ending 6/30/2029.

The below chart illustrates the monthly burn rate of the current task order 893032222FEM4000017. Starting from approximately $1,329,931 in April 2022, there has been a consistent increase with current requirements averaging about $1,930,020.00 a month, representing an increase of approximately 45.12%. On average, the burn rate has increased by 2.09% each month.

Continued Support for Capital and Special Projects: With ongoing capital projects, such as SSCVS and US, and new initiatives anticipated to require similar levels of oversight through at least FY2026, the financial demands on this contract are expected to remain high.

Historical special projects and the shift in operational focus to include a broader range of activities at WIPP also contribute to these demands.

Continuity in Mission Delivery: In the intricate and high-stakes environment of project management for the CBFO, ensuring continuity and maintaining exceptional performance standards is critical. The decision to continue with Navarro as the responsible source during this defined period is a strategic one, aimed at a need to maintain continuity in services without interruption or degradation during a period of high operational stress. A potential

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Feb-22 May-22 Aug-22 Dec-22 Mar-23 Jun-23 Oct-23 Jan-24 Apr-24 Jul-24

Monthly Burn Rate Task Order 89303222FEM4000017 loss of staff at this time would increase operational risk during a time where resources are already strained.

The essence of this decision lies in the need for uninterrupted, high-quality performance.

Navarro, with its proven track record and deep understanding of CBFO’s unique requirements, is best positioned to provide this continuity for the duration of the existing contract. This choice ensures that the intricate and critical tasks at hand are managed seamlessly, without the disruptions that can arise from transitioning to a new contractor.

It is crucial to understand that this decision is not an assertion that Navarro is the only company capable of performing this work indefinitely. Rather, it recognizes that within the current ordering period, Navarro is the most capable source. This defined timeframe allows for focused and efficient execution of tasks, while also providing the flexibility to reassess and explore competitive opportunities in the future.

Navarro’s consistent delivery of high-quality results has established a foundation of reliability and trust. Their expertise and familiarity with CBFO’s specific needs ensure that the mission-critical work continues to be executed with precision and dedication. This partnership is not merely about fulfilling contractual obligations; it is about safeguarding the success and integrity of CBFO’s operations.

In conclusion, selecting Navarro as the responsible source for a full eight years as originally intended is a deliberate and strategic decision. It ensures the continuity and quality of CBFO’s operations, reflecting DOE’s commitment to excellence and pragmatic management of complex projects. This approach not only secures the immediate needs of CBFO but also positions DOE to remain agile and responsive to future opportunities and challenges.

10. Listing of Sources, if Any, That Expressed an Interest in the Acquisition

A Notice of Intent was posted to SAM.gov to notify industry that the Government intends to increase the ceiling to use the full period of performance as originally intended. As mentioned in detail above in section 6, two emails of interest were received with only one vendor whom provided a capability brief and has been determined not capable for this specific action.

11. A Statement of Actions, if any, Agency May Take to Remove or Overcome any Barriers to Competition Before Any Subsequent Acquisition for The Supplies or Services Required.

The Government will have historical data based on the usage of the current contract and ongoing needs where hiring difficulties are experienced within the federal workforce. Prior to the expiration of all task orders under the current IDIQ contract, the Government will initiate another competitive source selection. This approach will allow for better insight into the surge of requirements and more accurate calculation of the estimated value for future contracts. Similar to the last competition where six proposals were received, another robust competition is expected for the next source selection. This sole source action is being executed at this time to ensure proper advance planning, with the next source selection anticipated to begin in a deliberate manner no later than during FY27.

12. CERTIFICATION

PROJECT OFFICE: I certify that any supporting data that is the responsibility of technical or requirements personnel and which form a basis for the justification have been certified as accurate and complete.

Acquisition Initiator CBFO/Office of Business Operations

CONTRACTING

OFFICER: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Contracting Officer

CBFO/Office of Business Operations

CONCURRENCE:

Legal Counsel EMCBC, Office of Chief Counsel

EM Contracting Activity Competition Advocate

11. APPROVAL

Head of Contracting Activity