JOFOC - MSTS DE-NA0003624 NNSS Security Protective Force and Systems Services_Redacted final.pdf

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JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

NATIONAL NUCLEAR SECURITY ADMINISTRATION

NEVADA NATIONAL SECURITY SITE

MANAGEMENT & OPERATING CONTRACT

Mission Support and Test Services, LLC Contract No. DE-NA0003624

I. AGENCY IDENTITY AND CONTRACTING OFFICE

The U.S. Department of Energy (DOE), National Nuclear Security Administration – Nevada Field Office (NNSA/NFO), plans to contract for Security Protective Force and Systems Services in support of the Nevada National Security Site (NNSS) and the NNSA/NFO by means of other than full and open competition. The contracting activity is the NNSA’s Office of Partnership and Acquisition Services, Management and Operating (M&O) Contracting Branch (NA-PAS-211).

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

This document sets forth the justification and approval for the use of one of the exceptions to full and open competition allowed under the Competition in Contracting Act of 1984.

This action is a sole source modification to the Mission Support and Test Services, LLC (MSTS) M&O Contract No. DE-NA0003624. MSTS has been performing as the M&O contractor at the NNSS since December 1, 2017, and the period of performance of the MSTS contract runs through November 30, 2027. This modification adds Safeguards and Security (S&S) scope (described below in Section III), including Protective Force Services (PFS), to the MSTS M&O contract. These services are currently provided under a different federal prime contract expiring on January 29, 2023.

III. DESCRIPTION OF SUPPLIES AND/OR SERVICES

MSTS will be required to perform management, operations, training, and performance testing of the protective force employees; design, installation, maintenance, and performance testing of security systems for nuclear and nonnuclear facilities;

classification, cyber security for security systems, and administration of the Human Reliability Program. The revision to the MSTS statement of work (SOW) to add the above-referenced security work scope will be accomplished through a noncompetitive contract modification action. The modification is expected to result in a $273.1M increase in value to the MSTS contract over the remaining performance period (i.e., from January 30, 2023, through November 30, 2027), bringing the total expected value of the contract to $5.7B.

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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.”

V. APPLICATION OF AUTHORITY

MSTS is the only source that can meet the government’s requirement for a single performer of S&S requirements in a manner that meets the agency’s objectives:

creating a single point of accountability, eliminating issues that result from a lack of integration across two federal prime contracts, and eliminating redundancies to facilitate the effective and efficient performance of S&S scope and oversight of the same. As the M&O contractor responsible for the management and operation of the NNSS, MSTS is uniquely situated to provide the required services. Even if another contractor were capable of providing the entire suite of S&S services at the site, there would still be significant interfacing requirements to overcome between the federal prime S&S contractor and the M&O contractor (no privity of contract between the S&S contractor and the M&O), resulting in continued integration issues and inefficiencies that negatively impact mission work at the site. The M&O contractor is therefore the only source that can meet the government’s requirement.

The unique and dynamic missions performed at NNSS require quick and effective S&S responses in an environment where there are workload and mission priority changes.

Any delay can impact mission and the tight project schedules for the Enhanced Capabilities for Subcritical Experiments (ECSE) necessary to position the NNSA for the future of stockpile stewardship. The current NNSS S&S contract model splits S&S function across two prime contracts (an M&O contract that includes responsibilities for key S&S functional areas, and a separate security contract for protective force and various other security functions).

The current bifurcated contract structure for performing the suite of S&S scope of work has created conflicting priorities, added unnecessary risk in S&S Program execution, and presented integration and oversight challenges in supporting NNSA mission and projects at the NNSS. MSTS is responsible for the management and operation of the NNSS and integrating all work being performed at the site yet has no contractual relationship with the PFS contractor.

Since there is no privity of contract between these two parties, MSTS does not have the ability to direct the PFS contractor when mission priorities change quickly but must depend on them to execute their portion of the work. Additionally, S&S requirements are

DE-NA0003624 Page 3 outlined in two separate SOWs under two separate contracts. Additional or new tasks not covered in the PFS contract Performance Work Statement must be negotiated with the PFS contractor before work can be performed. During contract performance, directives added to both contracts have been interpreted differently between MSTS and the PFS contractor causing delays and confusion in implementing requirements necessary to execute NNSA’s mission.

It is not practical to remove the S&S scope from the M&O contract and consolidate it with the PFS requirements to compete that work under a separate federal prime contract. Such a stand-alone contract would not adequately remedy the current communication, integration and mission enablement challenges because the performer of the mission work is MSTS, and MSTS would still be required to coordinate with an additional, outside entity regarding safety and security of the work that MSTS performs.

At this time, the only feasible way to address and simplify mission integration and oversight challenges is to consolidate PFS under one contract vehicle: the current M&O contract. Transitioning the PFS contract S&S functions to the M&O contractor minimizes risk and impacts to current mission work and schedule for the multi-billion-dollar ECSE projects as they currently are responsible for a sizable portion of the S&S functions.

Additionally, the M&O contractor is already tasked as the S&S integrator for all activities at the NNSS, and M&O contractor management of the PFS should drastically improve the integration problems NNSA is currently experiencing, as the M&O contractor would solely be responsible for performance. Consolidating S&S under the M&O contractor meets the NNSA’s long term goals, aligns the NNSS S&S contract structure with other NNSA sites and achieves a standardized security model with full integration across NNSA, and reduces mission execution risk to the federal government by ensuring continuity in completing critical NNSA mission and projects at the NNSS.

VI. EFFORTS TO IDENTIFY ADDITIONAL SOURCES

On August 4, 2022, the NNSA posted a Special Notice Synopsis, Notice ID 89233222NNA000003, to the Governmentwide point of entry at https://sam.gov/content/home of its intent to award a sole source contract modification to MSTS to provide Security Protective Force and Systems Services in support of the NNSS and the NNSA/NFO under the current M&O Contract No. DE-NA0003624.

VII. DETERMINATION OF REASONABLENESS OF COST OR PRICE

It is the determination of the NA-PAS Procuring Contracting Officer (PCO) that the anticipated costs will be fair and reasonable based on a cost/price analysis that was performed by an NNSA Cost/Price Analyst utilizing technical cost analysis based on historical costs.

VIII. MARKET RESEARCH

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As stated in Section VI above, NNSA published a Notice of Intent to move the Protective Forces scope of work to MSTS via a sole source modification. In the synopsis, interested sources were afforded the opportunity to identify their interest and capability to respond to the requirement.

IX. OTHER FACTS

None.

X. INTERESTED SOURCES

The names and addresses of the two companies that have expressed, in writing, an interest in this acquisition are as follows: 1) and 2)

The two responses received were evaluated, and it was determined that neither respondent demonstrated the capability to fully perform the full suite of S&S scope required, including those activities presently performed by MSTS. Even had the respondents demonstrated this capability, having a separate S&S contract would not accomplish the objective of reducing integration issues across multiple contracts because a separate federal prime S&S contractor would still create an additional integration point for MSTS as the M&O contractor at the NNSS and the government’s requirement is being restructured specifically to address integration issues.

XI. STEPS TO FOSTER COMPETITION

Moving forward, the S&S scope covered by this modification will be included in the M&O contract scope for the management and operation of the NNSS. It is anticipated that the M&O contract will be competed prior to the expiration of the MSTS contract.

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.

David R. Bowman, Ph.D., NNSA Nevada Field Office Manager

David R. Bowman Digitally signed by David R. Bowman

Date: 2022.11.04 09:00:22 -07'00'

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Contracting Officer:

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

Annamarie Howe, Procuring Contracting Officer NNSA Office of Partnership Services, NA-PAS-20 M&O Contracting Division, NA-PAS-21 M&O Contracting Branch, NA-PAS-211

Approval:

Senior Procurement Executive:

I have reviewed this Justification for Other than Full and Open Competition and find it to be accurate and complete to the best of my knowledge and belief. Since this justification exceeds $75M, this review serves as approval.

William J. Quigley Acting Deputy Associate Administrator, NA-PAS, & Acting Senior Procurement Executive

Annamarie Howe Digitally signed by Annamarie

Howe

Date: 2022.11.04 09:10:38 -07'00'

WILLIAM QUIGLEY

Digitally signed by WILLIAM

QUIGLEY

Date: 2022.11.04 12:49:19 -04'00'