JOFOC_FINAL.pdf

JUSTIFICATION FOR OTHER THAN FULL

AND OPEN COMPETITION (JOFOC)

U.S. Department of Energy National Energy Technology Laboratory

Strategic Analysis (SA) Support Services Contract No. 89243323CFE000075

1. Identification of the agency and the contracting activity, and specific identification of the document as a “Justification for Other than Full and Open Competition.”

The Department of Energy (DOE), National Energy Technology Laboratory (NETL) issues this Justification for Other than Full and Open Competition (JOFOC) to authorize a modification to increase the value of the Strategic Analysis (SA) Support Services contract 89243323CFE000075. The contract supports NETL’s execution of strategic analysis which includes efforts that (i) identify, assess, and optimize advanced energy technologies and systems, (ii) guide and evaluate internal and external R&D programs and projects, (iii) inform and conduct institutional and DOE strategic planning, and (iv) develop sponsors and transfer technology.

2. The nature and/or description of the action being approved, i.e. sole source, limited competition, establishment of a new source, etc.

This justification supports a noncompetitive modification to increase the value of the SA contract from its current value of $139,977,483.00 to $294,977,483.00, an increase of $155,000,000.00. The increase will continue critical services required to conduct strategic analysis through the end of the contract date of January 31, 2028.

Contract 89243323CFE000075 for Strategic Analysis Support Services was awarded to KeyLogic Systems, LLC on October 31, 2022, with an effective date of February 1, 2023. The contract was established competitively by soliciting on an unrestricted, full and open basis, and awarded in accordance with applicable procedures at Federal Acquisition Regulation (FAR) Part 15. The contract was awarded with a three-year base period (February 1, 2023, through January 31, 2026) and a one, two-year option period (February 1, 2026, through January 31, 2028) for a total of five years if the option is exercised, and an estimated contract value of $99,977,483.00.

The solicitation and resulting award stated the estimated total cost of the contract was not considered a ceiling value (B.2 Estimated Total Cost of Contract). Further, pursuant to Section B.1, DOE-B-2012 Supplies/Services Being Procured/Delivery Requirements (OCT 2014), the level of effort specified for the base period and option period was the present level of effort estimated for the performance of work in the PWS, and the contract is to be available for the Government to obtain services for the period of performance, even if the level of effort and/or the estimated cost as originally specified is insufficient.

During performance, unprecedented changes in programmatic requirements caused substantial increases in the number of Direct Productive Labor Hours (DPLH) identified for the contract. Consequently, the estimated total contract value increased during the base period from $59,179,203.00 to $139,977,483.00. It is noted that the base period is at the beginning of the third and final year, so the $139,977,483.00 is representative of the first two (2) years of the contract.

The estimated DPLH and estimated cost for the remaining year of the base period and option period are expected to be 1,607,580 in DPLH and $155,000,000 estimated costs, which is an increase of approximately 295% from the award contract. Therefore, while there was no ceiling price, the agency determined to issue a JOFOC based on the substantial increase in estimated cost.

The original estimated total contract value was based on competitive pricing where resource load information was provided within the Request for Proposal. This was established based on historical levels of effort available during the acquisition planning phase, years prior to the start of the contract. The difference between the new requested contract value of $294,977,483.00 and the original estimated total contract value is mostly attributed to the following: (1) Support for NNSA, (2) an increase in foundational Fossil Energy and Carbon Management (FECM) and other DOE requests of NETL, and (3) additional support required by the passage of the Infrastructure Investment and Jobs Act (IIJA) and Inflation Reduction Act (IRA).

3. A description of the supplies or services required to meet the agency’s needs.

NETL is one of the 17 laboratories in the Department of Energy’s national laboratory complex supporting the department’s mission to ensure America’s security and prosperity by addressing its energy, environmental and nuclear challenges through foundational science and transformative technology solutions. NETL is a Government-Owned and Government-Operated national laboratory managed by employees of the federal government. In the current environment of rapid energy transition, NETL serves as the preeminent energy technology laboratory focused on providing impactful science-based knowledge and innovative technology solutions.

The purpose of this contract is to obtain support services to fulfill NETL’s mission of driving innovation and delivering solutions for a prosperous energy future. These services provide high-quality, flexible, and timely technical and associated administrative support for strategic systems analysis and engineering, laboratory-wide strategic planning, program planning and partnerships.

The objective of this contract is to support NETL’s execution of strategic analysis and support which includes efforts that (i) identify, assess, and optimize advanced energy technologies and systems, (ii) guide and evaluate internal and external R&D programs and projects, (iii) inform and conduct institutional and DOE strategic planning, and (iv) develop sponsors and transfer technology. The management and execution of these dynamic and far-reaching services require an interdisciplinary personnel mix. Actively performing and providing support for NETL includes cooperative work with industry, universities, other national labs, other NETL site support contractors, and other external entities in addition to interdisciplinary, cooperative R&D and analysis with NETL federal technical staff.

Contract support focuses on four major types of activities: (1) planning for the strategic direction of NETL and the programs implemented at NETL; (2) conducting comprehensive energy analysis across a range of scales from energy markets, resource availability and distribution, to technoeconomic and life cycle analysis of specific programs, technologies and systems; (3) the development and application of modeling and analysis tools and capabilities that address emerging challenges that cannot be adequately addressed with existing approaches; and (4) identification and cultivation of partners and sponsors/customers for NETL R&D and analysis, enabling technology transfer and maturation, ultimately expanding and enhancing the national impact of NETL capabilities. Analyses and services include, but are not limited to the following:

Strategic Planning Energy & Economic Trend and Scenario Analysis Programs/Portfolios Guidance and Assessment Design, Optimization, and Analysis of Integrated Energy Systems Novel Energy Technology Assessment Energy Model Development and Enhancement Sponsor/Partnerships Development and Technology Transfer Enabling NETL Success Ad Hoc Technical Support

During performance of the SA contract, there was an increase in need for strategic analysis support services due to the enactment of the IIJA, and IRA. Additionally, demand for strategic analysis support under NETL’s Work for Others portfolio has increased substantially.

4. The statutory authority permitting other than full and open competition.

This sole source action is being conducted pursuant to 41 U.S.C. 3304(a)(1) as implemented by FAR 6.302-1, Only one responsible source and no other supplies or services will satisfy agency requirements.

5. A statement demonstrating the unique qualifications of the proposed contractor or the nature of the action requiring the use of the authority.

KeyLogic, as the current contractor, is the sole contractor who has the required personnel, necessary resources, tools, and procedures in-place to ensure continuity of services (see I.119, FAR 52.237-3, Continuity of Services (JAN 1991)).

Services must continue without interruption for critical strategic analysis support during this period.

KeyLogic, as the current contractor, is the only source capable of providing immediate and uninterrupted services; if services should not continue, the Government would fail to meet important milestones. Interruption of these services would make it impossible to deliver necessary results at the level and quality required to maintain the integrity of ongoing strategic analysis. Disruption to services would have negative ramifications to DOE. Work on activities would dramatically decrease or cease in its entirety.

As KeyLogic is the only source capable of providing the unique mix of requisite services without interruption, the increase in award value will provide critical support to activities.

6. A description of efforts to ensure that offers were solicited from as many potential sources as is practicable.

Include whether or not a contract opportunity announcement was made and what response, if any, was received, and include the exception under FAR 5.202 when not synopsizing. Describe whether any additional or similar requirements are anticipated in the future.

The contract was solicited as a full and open competition; therefore, it was announced via SAM.gov and FedConnect.net, allowing multiple offerors the opportunity to provide a proposal. Additionally, a synopsis was posted on the government wide point of entry via SAM.gov on 06/12/2025 and any interested party was required to submit a capability statement by 07/07/2025. The synopsis identified NETL’s intent to increase the contract value of the Strategic Analysis Support Services contract in order to provide NETL with sufficient support through the end of the current contract period of January 31, 2028. There were no vendors that responded or provided capability statements indicating that they could perform the full scope. Lastly, this JOFOC will be posted in accordance with FAR 6.305 through the Government Point of Entry in SAM.gov.

7. Cite the anticipated dollar value of the proposed acquisition including options if applicable and a determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

The increase to the contract value requested through this justification is $155,000,000.00 which will result in a total estimated value of $294,977,483.00. This award was competitively solicited and awarded with all labor and indirect rates determined to be fair and reasonable at the time of contract award. No changes are being made to the period of performance of the present contract because of this action. Any new labor categories and/or rates would be reviewed for reasonableness prior to becoming effective, although it is not anticipated additional labor categories or rates will be required. The Contracting Officer has determined that the anticipated cost is fair and reasonable.

8. A description of the market research conducted and the results or a statement of the reason market research was not conducted.

As part of NETL’s acquisition planning process, market research was conducted when the contract was originally solicited. As part of the market research, a sources sought synopsis was issued on January 31, 2020 (amendment issued on February 11, 2020). Three (3) responses were received, two (2) from large businesses and one (1) from a small business.

Based on the evaluation of the responses from the sources sought synopsis, it was determined that the solicitation did not need to be set aside for small business and therefore was solicited via full and open competition. Additionally, a synopsis was posted on the government wide point of entry via SAM.gov on 06/12/2025 and any interested party was required to submit a capability statement by 07/07/2025. The synopsis identified NETL’s intent to increase the contract value of the Strategic Analysis Support Services contract in order to provide NETL with sufficient support through the end of the current contract period of January 31, 2028. There were no vendors that responded or provided capability statements indicating that they could perform the full scope.

9. Any other facts supporting the use of other than full and open competition, such as:

a. Explanation of why technical data packages, specifications, engineering descriptions, statements of work or purchase descriptions suitable for full and open competition have not been developed or are not available.

When this contract was originally solicited, all required documents, including a formal acquisition plan and performance work statement were developed. Since the purpose of this JOFOC is to increase the value of the contract for with-in scope work, additional documents, including an acquisition plan or performance work statement were not developed.

b. When FAR Subpart 6.302-2 is cited for follow on acquisition as described in FAR 6.302-1(a)(2)(ii), an estimate of cost to the Government that would be duplicated and how the estimate was derived.

Not applicable (N/A). This justification is not being prepared in accordance with FAR 6.302-2 for a follow-on acquisition described in FAR 6.302-1(a)(2)(ii).

c. When FAR 6.302-2 is cited, data, estimated cost, or other rationale as to the extent and nature of the harm to the Government.

Not applicable. This justification is not being prepared in accordance with FAR 6.302-2 for a follow-on acquisition described in FAR 6.302-1(a)(2)(ii).

10. A listing of the sources, if any, that expressed a written interest in the acquisition.

None. See paragraph 6.

11. A statement of actions the agency may take to remove or overcome any barriers to competition if subsequent acquisitions are anticipated.

The purpose of this action is to increase the total estimated contract value to allow for services to continue, due to the fact that the contract is currently at its total estimated value. This contract was awarded after full and open competition. The use of competitive procedures will be evaluated during acquisition planning for subsequent acquisitions.