Justification_for_Other_Than_Full_and_Open_Competition_1.pdf

[1]

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

NATIONAL NUCLEAR SECURITY ADMINISTRATION

TRITIUM READINESS SUBPROGRAM

TPBAR TRANSPORT SYSTEM(S) and TRANSPORTATION SERVICES

89233122RNA000164/89233123CNA0000XX

13 September 2022

I. AGENCY IDENTITY AND CONTRACTING OFFICE

The Office of Tritium and Domestic Uranium Enrichment (NA-192) of the U.S. Department of Energy (DOE), National Nuclear Security Administration (NNSA) plans to contract for the transportation of irradiated Tritium Producing Burnable Absorber Rods (TPBARs) by means of other than full and open competition. The contracting activity is the NNSA Office of Partnership & Acquisition Services, Field Services Acquisition Branch, NA-PAS-313, Albuquerque Complex, New Mexico.

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 (CICA) of 1984.

This new (follow-on) contract action is for a multi-year contract with a 5-year period-of-performance. NNSA intends to sole source this acquisition to NAC International, Inc., 3930 East Jones Bridge Road, Suite 200, Norcross, Georgia 30092, to provide transportation of irradiated TPBARs in support of the Tritium Modernization Program, to meet national security requirements. The President’s Nuclear Weapons Stockpile Plan (NWSP) calls for NNSA to produce new tritium to support stockpile and reserve requirements. The subprograms of the Readiness Campaign were authorized in Section 3155 (b) of the National Defense Authorization Act for FY 2001. The Tritium Modernization Program was specifically codified by the National Defense Authorization Act of FY 2000 and is consistent with the Secretary of Energy’s Record of Decision for Tritium Supply and Recycling of May 1999.

III. DESCRIPTION OF SUPPLIES AND/OR SERVICES

To support the project, NAC International, Inc. will be required to provide work in multiple, distinct areas to include:

• Transportation of irradiated TPBARs from the Tennessee Valley Authority (TVA) to the Savannah River Site (SRS)

• Transportation of selected irradiated TPBARs from TVA to the Pacific Northwest National Laboratory (PNNL)

• Technical Support

• Project Management

• Decontamination of shipping casks

• Meeting all regulatory requirements for shipment of irradiated TPBARs

[2]

These efforts will ensure that national security requirements can be maintained at the prescribed level, by producing new tritium to replace that lost to natural radioactive decay. In this program, tritium is produced by irradiating enriched lithium-aluminate pellets with neutrons in one or more commercial nuclear reactors. The TPBARs, similar in dimensions to reactor fuel rods, are manufactured using commercial manufacturers that must meet nuclear industry quality assurance requirements.

The Tritium Modernization Program consists of two work areas: Tritium Production and Tritium Extraction. Tritium Production is closely associated with the commercial nuclear power industry and the participating facilities and contractors are subject to oversight by the Nuclear Regulatory Commission (NRC). These activities are performed by commercial suppliers, DOE sites not directly associated with the National Nuclear Security Administration (NNSA), and the Tennessee Valley Authority (TVA). Tritium Extraction is performed at the SRS.

The program estimated value of this acquisition is: $16,716,077

PERIOD OF PERFORMANCE TPBARs to Ship

YEAR 1 (FY2023/24) $2,580,216 1800

YEAR 2 (FY2024/25) $3,468,892 2400

YEAR 3 (FY2025/26) $2,972,757 2400

YEAR 4 (FY2026/27) $3,908,582 2700

YEAR 5 (FY2027/28) $3,785,629 3000

TOTAL: $16,716,077 12,300

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

Tritium has a half-life of 12.3 years, and any inventory needs to be continually replenished. One of NNSA’s missions is to provide an assured domestic source of new tritium to ensure national security requirements can be maintained at the prescribed level by replacing that lost to radioactive decay. Tritium is produced by irradiating enriched lithium-aluminate pellets with neutrons in a nuclear reactor. The complete lithium-aluminate assembly is the TPBAR.

Irradiation occurs over an 18-month cycle. Once the irradiation cycle is completed, the TPBARs are consolidated and placed into a shipping container with over pack. Each shipping container can contain up to 300 TPBARs. NAC International is a vital source that possesses extensive tritium program experience, knowledge, and expertise with transporting irradiated TPBARs between identified sites. The shipping container currently used is the NAC-Legal Weight Truck (LWT) transport container. The current fleet of LWTs is eight, of which three are specially modified to transport irradiated TPBARs. The LWT meets weight and physical dimension requirements that are compatible with the TVA Watts Bar and SRS tritium extraction facility (TEF). The LWT is also the only TYPE B package this is certified by the Department of

[3]

Transportation to transport TPBARs. The certificate is USA/9225/B(U)F-96, Revision 72, dated March 17, 2022.

The program office has initiated a study to determine requirements, commercial interest, and an acquisition strategy to meet increased quantities of irradiated TPBAR transportation requirements. The current transportation program is likely to experience potential increases in delivery beyond FY2024. Consideration will be given to the contractor should new, larger capacity shipping containers be developed, tested, and certified, whereby the government might consider negotiating and incorporating the larger casks for transporting TPBARs onto the contract. The five-year period of performance will allow the Program time to continue on-going studies and begin the implementation of a new, more innovative transportation program to meet future requirements beyond FY2027. While the requirements would not change as a result of the larger capacity casks, the Government may experience reduction in the number of future deliveries resulting in a significant cost savings under the negotiated contract. NAC International is currently the only company with the ability to transport irradiated TPBARs. To change contractors and lose a vital supplier’s capabilities would create a detrimental break in shipments, and significantly impact the Tritium Readiness Program’s ability to be prepared to provide new tritium, thereby jeopardizing the defense mission and placing the nation’s security at severe risk in the event of a national emergency.

VI. EFFORTS TO IDENTIFY ADDITIONAL SOURCES

A Request for Information (RFI) was published on 2 February 2022, with responses in the form of Contractor Capability Statements due on or before the RFI closing date of 23 February 2022.

The results of the Government’s evaluation of Contractor Capability Statements submitted in response to the RFI are detailed below:

Only one capability statement was received in response to the RFI from the incumbent, NAC International, Inc. Because there were no additional capability statements submitted in response to RFI No. 89233122NNA000083, it was determined that there were no additional vendors with the relevant experience and capabilities to provide the TPBAR Transport System & Transportation Services currently being provided by NAC International, Inc.; therefore, a synopsis of the Government’s intent to sole source this procurement action was issued under Reference Number 89233122NNA000083 and published on 28 April 2022 with responses due 13 May 2022. There were no comments, responses, inquiries or statements of capability received as a result of this synopsis. There was no other interest shown by either large or small businesses in performing this work.

VII. DETERMINATION OF REASONABLENESS OF COST OR PRICE

A commercial, Firm-Fixed-Price type contract is anticipated for this effort. It is the determination of the Contracting Officer that the anticipated price will be fair and reasonable based on a price analysis performed utilizing technical experts’ evaluation and analysis; evaluation of Defense Contract Audit Agency (DCAA) audit results; comparison to the Independent Government Cost Estimate (IGCE); previous historical data (previous component costs, estimates, etc.), and the Price Analyst evaluation and recommendations. Further, certified cost and pricing data will be required from contractor for this sole source award as this action does not meet any of the exceptions outlined in FAR 15.403-1.

[4]

VIII. MARKET RESEARCH

The sole source synopsis stated that all responsible sources may submit a bid, proposal, quotation, or an exception to the intent to procure on a sole source basis, which shall be considered by the agency. Again, neither large nor small business expressed an interest in performing this work.

Market research identified four commercial spent nuclear fuel shipment companies as follows:

• Edlow International Company with headquarters located at 1666 Connecticut Ave NW # 201, Washington, DC 20009. Edlow International provides a full spectrum of services in transportation management and material procurement spanning the entire nuclear fuel cycle. They serve clients on six continents and transport all forms of radioactive material

- from uranium ore concentrates, low enriched uranium, and fuel assemblies to high enriched uranium, spent fuel, and plutonium.

• The AREVA TN Subsidiary, headquarters located at 7207 IBM Drive, Charlotte, NC 28262. AREVA TN offers safe nuclear and radioactive logistics services. Key services include: Advanced logistics capabilities; Engineering and licensing competencies;

Manufacturing and delivery experience; and Class 7 expert and Nuclear Transportation Oversight.

• The TAM-USA International, Inc., headquarters located at 333 Broadway Street, Suite 926 Paducah, KY 42001. TAM-USA provides logistical services for safe front-end nuclear transportation solutions for the following materials: uranium ore concentrates, natural and enriched uranium hexafluoride, uranium trioxide, and fuel pellets and bundles.

• BWXT Technologies, Inc., headquarters located at 800 Main Street Lynchburg, VA 24504. Although not a logistics transport company, BWXT has the expertise to fabricate shipping containers used by the nuclear industry. Fabricating a TPBAR shipment container should be within their expertise.

Each of these companies appear to have the ability to competitively propose to a TPBAR shipment scope of work; however, none of those commercial transportation companies identified the capability to obtain and qualify a suitable shipping container in time to support required shipments.

IX. OTHER FACTS

N/A

X. INTERESTED SOURCES

A Request for Information (RFI)/Capability Statements was issued on 2 February 2022, with the incumbent contractor, NAC International, Inc. (a large business concern) being the only vendor responding to the RFI prior to its closing on 23 February 2022. An Intent to Sole Source Synopsis was publicly posted on SAM.Gov & FedConnect on 28 April 2022; however, that synopsis resulted in no comments, responses, inquiries, or submission of statements of capability

[5] being received. There was no interest shown by either foreign, large, or small businesses, or even teaming arrangements in performing this work.

XI. STEPS TO FOSTER COMPETITION

Steps have already been taken by conducting a form of market research, as previously mentioned, via the synopsis which stated that all responsible sources may submit a bid, proposal, quotation, or an exception to the intent to procure on a sole source basis, which shall be considered by the agency. However, no interests were shown in this requirement. It is estimated that it will take approximately 7-10 years to transition to another contractor and ramp up to current production rates.

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.

Samina Shaikh Contracting Officer Representative Tritium and Domestic Uranium Enrichment, NA-192

Contracting Officer:

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

Larry P. Veltman Contracting Officer Field Services Branch, NA-PAS-313

Head of the Contracting Activity (HCA) (if over $15M):

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.

Douglas Bergevin Head of Contracting Activity Office of Acquisition Services, NA-PAS-30

Samina Shaikh