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89233120CNA000170 Page 1

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

NATIONAL NUCLEAR SECURITY ADMINISTRATION

OFFICE OF THE URANIUM PROGRAM MANAGER

89233120CNA000170

September 16, 2020

I. AGENCY IDENTITY AND CONTRACTING OFFICE

The Office of the Uranium Program Manager NA-195 of the U.S. Department of Energy (DOE), National Nuclear Security Administration (NNSA) plans to contract for services to convert impure Highly Enriched Uranium (HEU) metals and oxides to purified uranium metal buttons 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 of the use of one of the exceptions to full-and-open competition allowed under the Competition in Contracting Act (CICA) of 1984. This new contract action is for a three-year sole source acquisition to Nuclear Fuel Services, Inc.

(NFS), 1205 Banner Hill Rd, Erwin, TN 37650, to purify HEU metals and oxides and convert the material into purified metal buttons, in support of the NNSA Uranium Program Manager.

III. DESCRIPTION OF SUPPLIES AND/OR SERVICES

NNSA requires a contractor to convert impure uranium metals and oxides into purified HEU metal buttons. Though NNSA’s requirement is currently met by facilities at the Y-12 National Security Complex (Y-12), the Y-12 facilities are past their design life and are scheduled for shutdown in the near future. In order to ensure mission continuity, NNSA intends to contract with NFS to begin processing impure uranium metals oxides into purified HEU metal buttons at its Erwin, TN, facility. NNSA anticipates issuing a three-year contract, with NFS completing the design and pilot production using depleted uranium, in year three of performance. The estimated total cost of this acquisition of is $57,479,078.

IV. AUTHORITY

The statutory authority permitting other than full and open competition is 41 U.S.C.

§ 3304(a)(1), as implemented by 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

NFS is the only responsible source capable of meeting NNSA’s requirements to convert impure uranium metals and oxides into purified HEU metal buttons, because NFS controls the only Nuclear Regulatory Commission licensed, Category 1 nuclear processing facility, with the capability to meet NNSA’s production requirements in the near term.

VI. EFFORTS TO IDENTIFY ADDITIONAL SOURCES

Through informal market research (see § VIII), NNSA was only able to identify two commercial facilities that possess the requisite NRC licenses and potential capabilities to meet NNSA’s requirements: the NFS facility in Erwin, TN; and a BWXT facility in Lynchburg, VA. NNSA’s market research confirmed that the latter facility did not have the capability to meet NNSA’s requirements in the near future.

Additionally, on June 25, 2019, NNSA posted a Synopsis/Notice of Intent to Sole Source to Federal Business Opportunities (FedBizOpps), allowing responsible sources that believe they could perform the required services an opportunity to submit a capability statement. NNSA did not receive any responses by the closing date of July 10, 2019.

VII. DETERMINATION OF REASONABLENESS OF COST OR PRICE

The Contracting Officer has determined, as part of the evaluation of the vendor’s proposal, that the costs are fair and reasonable based on a combination of cost and price analysis of the contractor’s proposal. This requirement is being procured on a firm-fixed-price basis.

VIII. MARKET RESEARCH

Market research, in the form of engaging the U.S. Nuclear Regulatory Commission, validates that NFS is the only available NRC-licensed Category 1 nuclear facility capable of processing HEU. NRC is the sole federal authority which grants licenses to operate domestic nuclear facilities.

IX. OTHER FACTS

There are no other facts relevant to this Justification for Other than Full and Open Competition.

X. INTERESTED SOURCES

NNSA posted a “Synopsis/Notice of Intent to award a sole source contract to NFS” on June 23, 2019, seeking capability statements from responsible sources that believed they could perform the required services, but received no capability statements.

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XI. STEPS TO FOSTER COMPETITION

NNSA will continually monitor the market to determine whether any new vendors have been licensed by the NRC to commercially process HEU.

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