JOFOC_for_ICF_Targets_Signed.pdf

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JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

NATIONAL NUCLEAR SECURITY ADMINISTRATION

INERTIAL CONFINEMENT FUSION TARGETS

Contract No. 89233119CNA000063

April 23, 2019

I. AGENCY IDENTITY AND CONTRACTING OFFICE

The Office of Research, Development, Test, and Evaluation (RDT&E), Experimental Sciences

NA-113 of the U.S. Department of Energy (DOE), National Nuclear Security Administration

(NNSA) plans to contract for research, development, engineering, and fabrication of Inertial

Confinement Fusion (ICF) targets, components, and technologies by means of other than full and open competition. The contracting activity is the NNSA Non-M&O Contracting Operations

Division (NA-APM-12).

II. NATURE AND/OR DESCRIPTION OF THE ACTION BEING APPROVED

This document sets forth the justification and approval for an exception to full and open competition allowed under the Competition in Contracting Act (CICA) of 1984 and FAR 6.302-

1, “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency

Requirements.” It is anticipated that this re-procurement will result in the award of a potential five-year sole source Cost Plus Fixed Fee (CPFF) contract (i.e., five-year base period, no options) to General Atomics Inc. located in San Diego, CA, to provide research, development, engineering, and fabrication of ICF targets, components, and technologies. General Atomics Inc.

presently performs this requirement under Bridge Contract No. 89233118CNA000010 awarded on October 01, 2018 and expiring on June 30, 2019. Previously, General Atomics Inc. performed this requirement for 5 years under Contract No. DE-NA0001808 which expired on September

30, 2018.

III. DESCRIPTION OF SUPPLIES AND/OR SERVICES

ICF capsule targets are complex, multi-component systems employed by various DOE programs for a multitude of high-energy-density (HED) experiments. The Office of RDT&E, Experimental

Sciences NA-113 is an important constituent of the agency’s Stockpile Stewardship Program

(SSP), which enables the United States to maintain a safe, secure, and reliable stockpile without the need for underground nuclear tests (UGTs). ICF/HED experiments conducted at the DOE’s

HED programs typically involve intense energy with fluxes ranging up to 1016 W/cm2 directed onto small targets in very short time intervals, which range from 0.01 to 100 nanoseconds. Under these conditions, the target material is driven to conditions of extreme densities, pressures, and

89233119CNA000063 Page 2 temperatures comparable to those encountered in nuclear weapon events. Material behaviors under these conditions are investigated and analyzed to improve experimental, theoretical, and numerical methods. ICF target dimensions are typically several millimeters (mm) in diameter, and can have shell thicknesses ranging from a few microns to mm; surfaces also vary according to specifications, which can include smooth, rippled, and random but well-quantified texture designs. Targets can also consist of multiple layers separated by gaps ranging from a few microns to mm, and can be manufactured from single, multiple, or composite materials (e.g., plastics, beryllium and uranium metals, alloys, low-density foams, and/or cryogenically cooled hydrogen and/or deuterium); these specifications are characterized to prescribed precisions while minimizing impurities to acceptable fractions. ICF target requirements are also directly connected to mission milestones and directives. Thus, many of the target components require short-term and/or long-term research and development (R&D) as well as innovative designs through engineering, or assembly development.

Reliable fabrication and timely delivery of targets is essential for continuous and efficient HED program operations. Timely development is key to target fabrication, including continuous incorporation of innovative avenues, and increasing process efficiencies. In order to meet these requirements, the contractor must have access to highly-specialized ICF target infrastructure such as: equipment, qualified personnel, R&D expertise, engineering, and manufacturing capability of ICF targets components. The scope of the current acquisition is to provide target fabrication support to the following NNSA HED programs: Lawrence Livermore National

Laboratory (LLNL), Los Alamos National Laboratory (LANL), Sandia National Laboratories

(SNL), University of Rochester Laboratory for Laser Energetics (UR/LLE), and U.S. Naval

Research Laboratory (NRL).

The estimated value of this acquisition is:

Year 1 $ 31,290,940

Year 2 $ 31,834,179

Year 3 $ 32,369,820

Year 4 $ 32,920,887

Year 5 $ 33,487,824_

Total $ 161,903,650

*Based on Independent Government Cost Estimate

IV. AUTHORITY

The statutory authority permitting other than full and open competition is 41 USC 3304(a)(1), as implemented by the Federal Acquisition Regulation (FAR) Subpart 6.302-1 entitled “Only One

Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.”

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V. APPLICATION OF AUTHORITY

General Atomics Inc. (GA) is the only source that possesses the capabilities (i.e., personnel, equipment infrastructure, specific expertise) needed to meet the Government’s requirement at the quantity and quality level that is required. GA is the only source able to fabricate targets made from the materials as specifically stated in the PWS (i.e., plastics, beryllium and uranium metals, alloys, low-density foams, and/or cryogenically cooled hydrogen and/or deuterium). GA also has the ability to start performing immediately upon contract award. Furthermore, over the past 10 years, GA has invested a substantial amount of money on internal capital, towards equipment, capital investments (e.g. U and Be fabrication facilities), in addition to in-house R&D applicable to target fabrication. Relocation of such equipment and facilities is not feasible since it is owned by GA and the knowledge that they have gained through their in-house R&D is GA’s intellectual property. Moreover, the required capability, if replicated elsewhere, would need to be re-established and verified, after years of planning, design, and construction; and the intellectual property acquired under a licensing agreement. Although this would be a cost to the contract, the consequences of potential program delays or discontinuity in ICF target production are of the highest concern. Thus, it is necessary for the contractor to possess the necessary equipment and staff to allow for timely contract execution and immediate high-level performance. For another company to obtain the same technical capability, would result in enormous additional expenses and time to the Government’s detriment. More importantly, ICF target production will likely be compromised between equipment decommission at the present facility and when capabilities are re-established by the new contractor. The Office of RTD&E expends approximately $250M per year in operating HED facilities. Any delays in the continuity of ICF target production would have severely damaging consequences to the overall mission.

No other businesses expressed interest in fabricating ICF targets; and furthermore, market research demonstrated that no other responsible source was capable of providing the full range of capabilities. Only GA was determined to possess all the capabilities described above which are necessary to perform the requirement in its entirety. More specifically, GA is the only known source that can fabricate targets made from all materials as stated in the PWS, has the ability to start performance immediately, and possesses the knowledge, expertise, and special equipment on site in order to successfully execute this requirement without delay. A substantial investment in time, money, and resources would be necessary for any other company to provide the capability to produce the targets employed by the NNSA’s HED programs.

VI. EFFORTS TO IDENTIFY ADDITIONAL SOURCES

A Sources Sought Synopsis was published under Solicitation No. 89233119RNA000037 on

December 19, 2018. Only one statement of capability was received, from GA on January 14, 2019. In the technical review of the capability statement, it was determined that GA demonstrated full capability to meet the requirements of the work. There has been no other interest shown by either large or small businesses in performing this work.

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VII. DETERMINATION OF REASONABLENESS OF COST OR PRICE

Prior to award, the Contracting Officer will make a determination that the anticipated costs will be fair and reasonable based on a price/cost analysis performed utilizing technical cost analysis;

evaluation of Defense Contract Audit Agency (DCAA) audit results; the Independent

Government Cost Estimate (IGCE); and previous historical data.

VIII. MARKET RESEARCH

A Sources Sought Synopsis for ICF Target Fabrication was published under Solicitation No.

89233119RNA000037 to the general public through Fedconnect and FedBizOpps (FBO) on

December 19, 2018. Only GA submitted a capability statement on January 14, 2019. In the technical review of the capability statement, it was determined that General Atomics, Inc.

demonstrated full capability to meet the requirements of the work. There has been no other interest shown by either large or small businesses in performing this work. A thorough evaluation of the submission was completed to determine the degree to which the capability statement validated the contractor’s ability to perform the requirements identified in the PWS

(see attachment). General Atomics, Inc. (a large business) was deemed capable of successfully performing all PWS requirements.

The Contracting Officer also coordinated with the DOE/NNSA Small Business Program

Manager prior to the release of the sources sought synopsis in late November and early

December of 2018. A search under NAICS 541715 for Research and Development in the

Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology) with a

Small Business Size Standard of 1000 employees and Product/Service Code AJ12 for R&D –

General Science/Technology: Physical Sciences was not successful in producing any small business leads, or market stakeholders. The DOE/NNSA Small Business Program Manager performed his own research prior to release of the sources sought synopsis that did not reveal any new information, or market research that indicated any small businesses with the potential of performing all of the work described in the PWS. As a result, the Small Business Program

Manager signed the Coordination and Approval Document for the release of the Sources Sought

Synopsis in order to further substantiate the Government’s best market research efforts to identify additional sources.

Based on the information detailed above, it is hereby determined that the economic environment surrounding ICF target fabrication has not changed dramatically enough to warrant further review of potential competitors. Based on the information we know today, General Atomics, Inc.

is still considered to be the only capable contractor available.

IX. OTHER FACTS

None.

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X. INTERESTED SOURCES

As stated above in Section VI, only General Atomics, Inc. submitted a response to the Sources

Sought Synopsis expressing interest in executing this requirement.

XI. STEPS TO FOSTER COMPETITION

The Government has attempted to foster competition for the ICF target fabrication requirement by reaching out to small businesses, the DOE/NNSA Small Business Program Manager in coordination with the Small Business Administration (SBA) Procurement Center Representative, and soliciting a Sources Sought through Fedconnect and FBO. However, this has presented challenges since expertise in target support is a highly-specialized area of work that requires considerable time and resources. No small businesses submitted interest in this opportunity and furthermore; only one large business submitted interest and was determined capable – General

Atomics, Inc. NNSA maintains a commitment to ensuring competition when practicable, and, prior to making future procurement decisions related to this requirement, the program will continue to monitor and assess the state of the market in an attempt to identify other capable, responsible sources.

XII. CERTIFICATIONS

Acquisition Initiator/Technical Representative:

I certify that the facts and representations under my cognizance, which are included in this justification and which form a basis for this justification, are complete and accurate.

Signature

Contracting Officer:

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

Senior Procurement Executive (over $68M):

I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief. Since it exceeds $68M this review serves as approval.

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ATTACHMENTS:

1. Performance Work Statement

2. Sources Sought