Justification for Exception to Fair Opportunity.pdf

SOURCE SELECTION INFORMATION, See FAR 2.101 and 3.104/ CUI//SP-PROCURE

JUSTIFICATION FOR EXCEPTION TO FAIR OPPORTUNITY

Project Name: Los Alamos Site Technical Assistance Contract Task Order

Estimated Cost/Price of the Task Order: Approximately $28.6M

Authority: FAR 16.505(b)(2)(i)(C)

Type Determination: Individual

I. Contracting Activity

United States Department of Energy, Los Alamos Field Office (EM LA), Contracting Officer, Tyler Ingalls, (505) 309-2631, tyler.ingalls@em.doe.gov.

II. Nature and/or Description of the Action Being Processed

The Department of Energy (DOE) has a requirement for continued Technical Assistance support at Los Alamos. This is a justification for a logical follow-on to the current task order which was competed amongst all seven (7) of the multiple award Indefinite Delivery / Indefinite Quantity (IDIQ) contractors for the Environmental Management Consolidated Business Center (EMCBC) Site Technical Assistance Contracts awarded in September 2022 and has a period performance of October 1, 2022, to March 31, 2024. The type of work that is proposed to be performed under the Task Order is the same as the services currently being performed by S&K Mission Support, LLC (S&K) and is, therefore, consistent with the scope described in the performance work statement of the master IDIQ contract and the current Time and Materials (T&M) Task Order. The proposed follow-on task order will be initiated prior to the end of the ordering period, September 19, 2027, of the master IDIQ contract. The proposed follow-on task order is for approximately $28 to $30 million, which is well within the maximum ordering quantity of $120 million for the master IDIQ contract. This estimate is based on historical costs, anticipated funding, and performance for 3 years. Pursuant to Head of Contract Activity (HCA) Directive 2.0, Independent Government Cost Estimates, dated May 23, 2017, the Contracting Officer will commission the completion of an Independent Government Cost Estimate (IGCE) to estimate the cost of a follow-on Task Order with the EMCBC Office of Cost Estimating at the appropriate time prior to the receipt of a follow-on proposal from S&K.

III. Description of the Supplies/Services Required To Meet the Agency’s Needs

The scope of the proposed Task Order is for the same work scope as the current task order.

Specifically, the requirements are as follows:

Project Controls Support Activities Emergency Management, Continuity of Operations, and Security Program Support Public Affairs Support Activities Northern New Mexico Citizen’s Advisory Board (NNMCAB)Activities

Environmental Compliance Activities Quality Assurance (QA) Program Development, Maintenance, and Evolution QA Audit, Surveillance, and Oversight Occupational and Industrial Safety Integrated Safety Management System, Safety Culture, and Safety Conscious Work Environment Program Support Field Operations Support Nuclear SafetyActivities Radiation Protection Activities Administrative Support Program Analyst Support Cost Estimator Support Program Management Activities

IV. Authority Permitting a Fair Opportunity Exception

FAR 16.505(b)(1)(i) and Clause H.41, Task Ordering Procedure, of the master IDIQ contract requires the Contracting Officer to provide each awardee under a multiple award contract a fair opportunity to be considered for each order exceeding the micro-purchase threshold unless a statutory exception applies. The specific exception that precludes the fair opportunity process for this acquisition is FAR 16.505(b)(2)(i)(C):

The 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, provided that all awardees were given a fair opportunity to be considered for the original order.

The proposed task order will be issued on a sole-source basis in the interest of economy and efficiency. Awarding a follow-on task order will allow the Government to leverage the relationships S&K has developed with New Mexico regulators and Tribal Leaders, as well as the historical knowledge at the site that has been obtained. In addition to the acquisition time savings, there are numerous other economies and efficiencies that will be realized, including, but not limited to, avoidance of re-procurement costs, workforce stability, continuity of relationships developed with New Mexico regulators and Tribal leaders, and avoidance of learning curve disruptions and delays in meeting legal/regulatory commitments.

There is little potential for DOE to see significant benefits by competing this work due to increased costs and performance risks associated with transitioning to a new contractor. S&K currently performs consistently well, and a new contractor would not be able to perform nearly as well as S&K without a significant learning curve. Additionally, S&K is currently working on multiple projects that, if interrupted, could severely affect the Government’s ability to meet various legal and regulatory commitments. Should the Government be delayed in meeting these commitments, significant costs associated with litigation could be incurred. Through its several years of high-quality performance, as the incumbent contractor on the previously expired Technical Assistance Contract (TAC), S&K has gained substantial institutional knowledge of the Los Alamos Field Office and experience at the site to continue performing extremely well as evident by S&K’s CPARS reports and first-hand knowledge of the work that S&K completes on a daily basis for EM-LA. DOE expects to achieve significant benefits in economy and efficiencies by issuing a logical follow-on task order to S&K for technical assistance at the Los Alamos Field site.

As stated above, the work would be essentially the same under the follow-on Task Order with similar technical assistance work scope described in the initial Task Order. The period of performance and value of the follow-on Task Order will be for three additional years at approximately $28M to $30M. The Contracting Officer will commission the completion of an Independent Government Cost Estimate (IGCE) to estimate the cost of a follow-on Task Order.

It is anticipated that there will be an increase in the annual costs for the follow-on because of escalation and emerging site needs.

Considering the significant benefits to the Los Alamos Field Office of continued performance by S&K, which include their relationships with New Mexico regulators and Tribal Leaders, and the historical knowledge of the site that has been gained, issuing S&K a follow-on task order on a sole-source basis will be the most economic and efficient method to meet the requirements.

V. Determination by the Contracting Officer That The Anticipated Cost to the Government Will Be Fair and Reasonable

DOE will be able to determine a fair and reasonable price. An analysis of the historical cost and trends under the previous contract and the current Task Order will be used as a basis to negotiate price for the follow-on work. An audit and/or cost analysis will be required ensuring the proposed fully burdened labor rates are reasonable and realistic. The audit and/or cost analysis will review current company information to evaluate and determine price reasonableness.

Additionally, an IGCE will be developed to aid in the evaluation and negotiation of a fair and reasonable price for the follow-on work.

Ultimately, the Contracting Officer believes that the anticipated price of this follow-on task order will be fair and reasonable considering the significant amount of historical cost data DOE has available for analysis.

VI. Other Facts Supporting the Justification

S&K's performance to date has been very good overall. S&K has done a very good job on the current Task Order of stepping in and continuing the work from the last contract, including building effective working relationships with stakeholders such as community leaders, citizens, and regulators. S&K has been very flexible and able to respond quickly and positively as changes to the original Task Order requirements have been made due to funding changes.

Additionally, DOE has made every effort to enhance competition to the maximum extent possible for this requirement that is part of the SBA 8(a) business development program. For reference, the prior contract was a directed 8(a) award, and DOE could have directed the recently awarded follow-on contract; however, a decision was made to consolidate the EM complex-wide Site TACs requirements being performed on directed 8(a) contracts into multiple IDIQ contracts.

This allowed DOE to compete the existing Task Orders amongst the seven 8(a) IDIQ contractors, which resulted in S&K being selected as the best value to the taxpayer. Continuing performance with S&K is also in the interest of the taxpayer through a logical follow-on Task Order. The justification for an exception to fair opportunity will be posted to FedBizOpps.gov within 14 days of Task Order issuance for 30 days, as required by FAR 16.505(b)(ii)(D).

VII. Actions the Agency May Take to Remove or Overcome Any Barriers To Increasing Fair Opportunity Before Any Subsequent Acquisition For the Supplies or Services

Any contract for Los Alamos technical support after the logical follow-on would not be accomplished under the existing Site TACs IDIQ contracts, as the ordering periods will expire in 2027. Additionally, DOE intends to re-compete the EM IDIQ contracts and will solicit for any requirements subsequent to the logical follow-on using the procedures described in FAR Part 15 as was done in awarding the current round of seven 8(a) IDIQ contracts.

VIII. Contracting Officer’s Certification

The Contracting Officer certifies that the information in this justification are true, accurate and complete to the best of his knowledge and belief.

IX. Technical/Requirements Personnel’s Certification

As evidenced by their signatures on the signature page, the technical and requirements personnel have certified that any supporting data contained herein which is their responsibility is both accurate and complete.

X. Determination by Approving Official

The Approving Official determined based upon the analysis in this justification that the circumstances in 16.505(b)(2)(i)(C) applies to the proposed Task Order.

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 other rationale for an exception to fair opportunity) and which form a basis for the justification have been certified as accurate and complete.

Sarah Gilbertson Date Deputy Site Manager DOE EM-Los Alamos Field Office

CONTRACTING

OFFICER: I certify that this Justification is accurate and complete to the best of my knowledge and belief in accordance with applicable regulations.

S. Elizabeth Gilbertson Digitally signed by S. Elizabeth Gilbertson Date: 2024.01.08 13:29:56 -07'00'

Tyler Ingalls Date Contracting Officer DOE EM-Los Alamos Field Office

Competition Advocate

XI. CONCURRENCE

Amber Gray Date Competition Advocate Office of Environmental Management

Digitally signed by Tyler J. Ingalls Date: 2024.01.08 13:56:29 -07'00'

Angela Watmore Date Head of Contracting Activity Office of Environmental Management

XII. APPROVAL