Just Exception Fair Opportunity - LLNL B281 DDR.pdf

UNITED STATES DEPARTMENT OF ENERGY

OFFICE OF ENVIRONMENTAL MANAGEMENT

CONSOLIDATED BUSINESS CENTER

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

Procurement: Lawrence Livermore National Laboratory, Building 281 Deactivation Decommissioning and Removal

Number: Contract: 89303320DEM000038 / Task Order: “To be determined”

The Department of Energy makes this Justification for an Exception to Fair Opportunity order pursuant to Federal Acquisition Regulation (FAR) 16.505(b)(2)(i) (A) and (C).

1. Agency and Contracting Activity.

United States (U.S.) Department of Energy (DOE), Office of Environmental Management (EM) Consolidated Business Center (CBC), Office of Contracting (OOC)

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

This action is for award of a task order to Aptim Federal Services, LLC (APTIM) to be issued under the Nationwide Deactivation, Decommissioning and Removal (DD&R) multiple-award indefinite delivery indefinite quantity (IDIQ) contract number 89303320DEM000038, for the deactivation and decommissioning (D&D) of Building 281 (B281) at Lawrence Livermore National Laboratory (LLNL) in Livermore, CA.

The contemplated task order type is a hybrid firm fixed price (FFP) and cost plus incentive fee (CPIF). This combination of task order types is considered to be most beneficial to DOE because it allocates cost risk from DOE to the contractor in the areas of scope with the least amount of performance and cost risks (e.g., implementation and project support services), while also providing a more fair allocation of cost risk between DOE and the contractor in the areas of scope with a higher degree of performance risk and uncertainties (e.g., DD&R and waste support services).

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

The services to be provided are for the DD&R of B281 at LLNL.

The contractor shall perform DD&R of B281 to slab-on-grade, to include surgical separation and DD&R of associated structures as described in the performance work statement and Section C of the task order. The contractor shall coordinate with the National Nuclear Security Administration (NNSA) and the LLNL Managing Contractor, Lawrence Livermore National Security, LLC (LLNS) for all necessary interfaces, including but not limited to coordination for utilities and systems deactivation and isolation as necessary in preparation for equipment removal and facility demolition.

The estimated high range value of this task order is $22.1 million.

4. Identification of the Exception to Fair Opportunity and Supporting Rationale.

DOE has identified two exceptions under FAR 16.505(b)(2) that are applicable to this justification.

Exception 1: FAR 16.505(b)(2)(i)(C)

The new task order must be issued on a sole source basis in the interest of economy and efficiency because it is a logical follow-on to an order already issued under the contract that gave all awardees a fair opportunity to be considered for the original order.

Rationale

Task Order 89303321FEM400225 under the Nationwide DD&R IDIQ contract was placed in accordance with the fair opportunity process for the D&D of Building 251 (B251) at LLNL.

All awardees of the Nationwide DD&R IDIQ contract were given a fair opportunity to be considered for award of the original order, TO 89303321FEM400225 (hereinafter “TO B251”).

In the interest of economy and efficiency, this task order is a logical follow-on in terms of scope to the TO B251. The B281 DD&R will require characterization, waste management and similar interfaces, processes and controls as APTIM has utilized on the TO B251 work scope. The relationships for Excess Facilities Demolition at LLNL are established in an existing Memorandum of Understanding (MOU) between DOE EMCBC and NNSA Livermore Field Office. Through performance of the TO B251 DD&R, APTIM has gained institutional knowledge and specific experience and expertise in performing the same and similar DD&R work at LLNL in accordance with the MOU.

APTIM further possesses a significant number of site-specific programmatic documents and deliverables in place as a result of requirements on the TO B251 D&D that can be utilized under this follow-on task for B281 D&D. Examples of these documents and deliverables include a Radiation Protection Plan, Worker Safety and Health Program Plan, Quality Assurance Program, Records Management Plan, Government Property Management Plan, Contractor Assurance System, and various other interface agreements with LLNS. A TO award to a different contractor will lead to a duplication of costs in the development, review, and approval of these documents.

There are significant efficiencies and a level of risk reduction inherent with APTIM’s gained expertise and familiarity with the LLNL site’s processes, procedures, and interfaces with the existing managing contractor, LLNS, and Livermore Field Office (LFO) personnel. In the aggregate, DOE does not anticipate recovering these economies and efficiencies through the fair opportunity process.

Exception 2: FAR 16.505(b)(2)(i)(A)

The new task order must be issued on a sole source basis as the agency need for these services is so urgent that following the fair opportunity process would result in unacceptable delays.

Rationale

Currently, work is progressing on DD&R of Building 280 (B280) under an Interagency Agreement (IAA) with the United States Army Corps of Engineers (USACE). B280 is adjacent to B281, which is considered to be excess.

There is an urgent need to complete B281 DD&R in concert or parallel fashion with the B280 DD&R as the B280 underground structure removal has recently been identified as a potential foundation integrity concern for B281. B281 also resides within the B280 demolition fall zone. The B281 removal will provide full access for the efficient demolition of the B280 dome and alleviates structural concerns associated with the deep excavation required for the removal of the B280 equipment pits.

Integration and coordination of the B281 and B280 DD&R will result in substantial cost savings and significantly reduce potential health and safety concerns. Following the fair opportunity process would result in unacceptable delays to the B280 DD&R due to the need to design and install shoring to the B281 foundation and the need to take additional precautions when working near B281.

APTIM possesses specific familiarity with the LLNL site and with B280/B281. APTIM removed the reactor from within B280 which provides them with specific knowledge of the B280/B281 interfaces. Due to the unique and highly specialized nature of the B281 DD&R, the insights and institutional knowledge gained through the B280 reactor removal provides APTIM with a significant advantage over any other DD&R awardee in its capability to respond to this requirement without unacceptable delay and at the level of quality required.

5. Determination that the Anticipated Cost to the Government will be Fair and Reasonable.

The contracting officer will determine that the proposed price of the work is fair and reasonable based on a detailed analysis of the individual cost components for the work that shall be performed prior to task order award. Historical pricing information, comparison to the Independent Government Estimate (IGE), and appropriate analytical techniques and procedures will be used to help determine whether the final price is fair and reasonable. The contracting officer will request the advice and assistance of pricing experts to ensure that an appropriate analysis is performed.

6. Other Facts Supporting the Justification.

None.

7. Actions to Remove or Overcome Any Barriers that led to the Exception to Fair Opportunity Before Any Subsequent Acquisition for the Services Required.

It is DOE’s intent to compete future Nationwide DD&R work in accordance with FAR

16.505 Ordering and the Nationwide DD&R IDIQ contract clause H.51 Task Ordering Procedure, as appropriate to ensure that offers are solicited from as many potential sources as is practicable and that fair opportunity is provided to all awardees. Therefore, competition will be conducted before any subsequent acquisition for the supplies or services are required.

Due to the exceptions documented above, this acquisition was not suitable for competition.

8. Certification.

PROJECT OFFICE

I certify that any supporting data that is the responsibility of technical or requirements personnel (e.g., verifying the Government’s minimum needs or requirements or othe rationale for an exception to fair opportunity) and which form a basis for the justification have been certified as accurate and complete.

Kevin Bazzell EM Federal Project Director, LLNL

CONTRACTING OFFICER

I certify that this Justification is accurate and complete to the best of my knowledge and belief. I hereby determine that the task order must be issued on a sole source basis in the interest of economy and efficiency because it is a logical follow-on to a task order already issued under the contract where all awardees were given a fair opportunity to be considered for the original order and that the Agency need for the these services is so urgent that following the fair opportunity process would result in unacceptable delays.

Jose Ortiz Delgado Contracting Officer EMCBC Office of Contracting

9. Approval.

I certify that the Justification is accurate and complete to the best of my knowledge and belief. I hereby determine that the task order must be issued on a sole source basis in the interest of economy and efficiency because it is a logical follow-on to a task order already issued under the contract where all awardees were given a fair opportunity to be considered for the original order and that the Agency need for these services is so urgent that following the fair opportunity process would result in unacceptable delays.

I further determine on the basis of the findings above that the Exception to Fair Opportunity is in accordance with FAR 16.505(b)(2), and is in the best interest of the Government.

John P. Zimmerman EM – Competition Advocate