Justification for Other than Full and Open Competition.pdf

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UNITED STATES (U.S.) DEPARTMENT OF ENERGY (DOE)

OFFICE OF ENVIRONMENTAL MANAGEMENT (EM)

LOS ALAMOS (LA)

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

FOR PROCUREMENT TO STORE DOE TRANSURANIC (TRU) WASTE AT

WASTE CONTROL SPECIALISTS LLC (WCS)

1. AGENCY IDENTIFICATION AND CONTRACTING ACTIVITY.

The DOE EM-LA Field Office (Contracting Activity) proposes to contract directly with Waste Control Specialists LLC (WCS) for the temporary storage of Transuranic (TRU) or Greater- Than-Class-C (GTCC) waste in accordance with the sole source fair opportunity exemption at Federal Acquisition Regulation (FAR) 6.302-1(a)(2).

2. NATURE AND/OR DESCRIPTION OF THE ACQUISITION.

This procurement action is for a sole source order to be issued against Basic Ordering Agreement (BOA) 89303321GEM000020, Nationwide Low-Level Mixed Low-Level Waste Treatment Services, for the continued storage of DOE LANL TRU waste already stored at the Contractor’s facility located in Andrews, Texas. The procurement also includes actions to support loading for transport offsite by DOE. The contemplated order type is fixed price as was initially implemented when the waste was accepted for storage at WCS in 2014.

3. DESCRIPTION OF SERVICES.

The services to be provided include technical and administrative services for the continued storage of the 74 DOE LANL TRU waste containers at WCS and support loading so that the waste can be transported to an offsite facility at the end of the storage period. The waste has been in storage at WCS since 2014.

DOE sent TRU mixed waste from DOE Los Alamos National Laboratory (LANL) to the WCS Site in Andrews County, Texas for temporary storage in April 2014. This action was intended to be a short-term step that would allow the waste to be shipped to WIPP when WIPP recovered from a radiological event and began accepting waste for disposal. However, the cause of the WIPP radiological event was later determined to be an exothermic reaction between organic materials and nitrate salts inside a LANL waste drum. Subsequent to the shipment of the LANL waste to the WCS Site, DOE determined that some of the waste at WCS was from the same population that produced the reactive event at WIPP, which prevented transfer of the LANL waste at the WCS Site to WIPP as originally planned. Over the past nine years, DOE has completed a number of studies and evaluations to confirm that the waste can be removed from WCS storage and transferred to WIPP. In June 2023, DOE informed the Texas Attorney General’s office that it plans to move its 74 containers of TRU waste out of the WCS site by

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the end of 2026. In the meantime, this procurement is necessary because it will provide for required storage support prior to the transfer from the WCS site.

This procurement is applicable only to the TRU waste containers in storage since 2014 and does not involve any onsite treatment or disposal of the waste at the WCS site. The estimated value of the resulting order is not expected to exceed $17M.

4. EXCEPTION TO FAIR OPPORTUNITY/STATUTORY AUTHORITY.

The authority for this justification for an exception to fair opportunity is FAR 6.302-1, where only one awardee capable of providing the services. The statutory authority that permits other than full and open competition is 10 U.S.C. 2304(c)(1), Only One Responsible Source.

Pursuant to 41 U.S.C. 3304(a)(1), the head of an agency may use procedures other than competitive procedures only when the property or services needed by the agency are available from only one responsible source or only from a limited number of responsible sources and no other type of property or services will satisfy the needs of the agency.

5. UNIQUE QUALIFICATIONS.

The TRU waste currently at the WCS Facility is in accordance with license and permit requirements as stipulated by the Texas Council for Environmental Quality (TCEQ) in collaboration with the US Nuclear Regulatory Commission (NRC) and the US Environmental Protection Agency (EPA). As such, the only organization that can be authorized to accomplish continued storage and loading support is the owner and licensee for nuclear operations at the facility. As the radioactive materials license holder for the WCS site, there is no other organization or company that can perform operations at the site in accordance with the TCEQ radioactive materials license rules (Title 25 of the Texas Administrative Code), TCEQ License #R04100, and TCEQ Permit # HW-50358.

6. STEPS TO FOSTER COMPETITION.

Pursuant to FAR 5.203(a), a synopsis was posted to give notice of this sole source order.

Three responses were received in response to the notice. None of the respondents were deemed capable of meeting this requirement (see item 10 for additional details). Pursuant to FAR 6.305, this justification will be made publicly available within 14 days after award of the order and will remain posted for 30 days.

7. DETERMINATION OF FAIR AND REASONABLE COST.

As mentioned previously, the total estimated value of this requirement is approximately $17 million. The period of performance (POP) for this order shall be from 13 September 2024 to 2 December 2026. An analysis of historical costs and trends under previous contract mechanisms for the storage of this waste and other similar wastes will be used as a basis of

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determining fair and reasonable pricing. Additionally, a detailed cost analysis and a technical evaluation of the elements of the storage cost will be completed. The Contractor will not be required to submit a certificate of Certified Cost and Pricing Data (CCPD) because the prices associated with this requirement can be determined to be fair and reasonable without the submission of CCPD. A waiver of CCPD will be pursued in accordance with FAR 15.4031(c)(4). DOE will also complete a formal Independent Government Cost Estimate (IGCE) prior to receipt of the Contractor’s proposal.

Ultimately this requirement will be satisfied by issuing a order against Basic Ordering Agreement (BOA) 89303321GEM000020. The order will be structured as a firm fixed unit price order with a total Not to Exceed (NTE) dollar amount. Use of this order type complies with the stated requirements of Section H.10, Task Ordering Procedures of the BOA, and as mentioned earlier, the work is within the scope of Section C.4.5, Ancillary Services, of the BOA. Utilizing fixed unit rates will allow DOE to shift cost, schedule, and performance risk to the Contractor. Establishing a NTE will further reduce DOE’s risk and establish a set known maximum payment under the order.

8. MARKET RESEARCH.

As required by FAR 10.001, market research for the BOAs was conducted. On November 12, 2019, the DOE issued an RFI for the purpose of soliciting input from interested parties with specialized capabilities necessary to meet all or part of the requirements of the elements of scope for the upcoming competitive procurement for Low-Level/Mixed Low-Level Waste Treatment Services including but not limited to: Waste Treatment Capabilities; Waste Transportation Capabilities; Risk Identification; Organizational Operations/Regulatory capabilities; Forecasted Regulatory Capabilities; Identifying new Waste Treatment methods;

Identifying Waste alternative/recycling disposition strategies; Discussing Ideas and Opinions in the treatment of chemicals; and the Organizational Ability to Process all Waste. DOE received five (5) responses to this posting. Four of the five interested vendors were determined at least partially capable of performing the full scope of work. All four of those vendors, including Waste Control Specialists, LLC, were amongst five (5) BOA awardees. After award of the BOAs, it was determined that given the permit requirements stipulated by the TCEQ, WCS was the only source capable of performing this scope. This is a follow-on requirement to the previous BOA order 89303322FEM400256 awarded to WCS on March 4, 2022. The scope of this BOA Order included preparing for safe onsite relocation of DOE TRU Waste containers currently stored at the WCS Facility in Andrews County Texas, specifically planning, licensing, permitting, engineering, and installation to relocate the waste to an above ground storage location at WCS but did not include the removal and transfer operations themselves.

The work included formal and progress submittals to external regulatory agencies that oversee WCS operations including USDOE.

9. OTHER FACTS SUPPORTING THE JUSTIFICATION.

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Through ongoing interactions with regulatory agency representatives regarding disposition options for this waste, TCEQ has consistently maintained that this waste must be removed from the WCS site as originally planned. TCEQ has maintained that onsite processing or disposal will not be authorized for this waste and requested a plan and schedule for removal of the waste as a priority. DOE developed a plan for removal of the waste in concert with TCEQ and other stakeholders in 2019 and submitted a Project Plan to TCEQ in March 2020. This procurement supports continued storage only until removal can be accomplished as defined in that plan. In June 2023, DOE provided an update to the Texas Attorney General’s Office and TCEQ on DOE’s plans to retrieve and ship the 74 DOE LANL TRU waste containers at WCS.

The potential approach would involve treating the waste by overpacking the standard waste boxes (SWBs) into Standard Large Box 2 (SLB2) containers with insulating hollow glass beads between the walls of the SWB and SLB2. Such treatment would control the potential oxidizer hazard posed by the waste. Three of the 74 containers would be shipped without this treatment.

10. INTERESTED SOURCES.

Three responses were received in response to the posted synopsis:

- CrownTier Enterprise LLC provided an email response to the synopsis. CrownTier

Enterprise LLC did not provide a capability statement in response to the synopsis. They did, however, request to be provided a scope of working, pricing, etc. CrownTier Enterprise did not indicate they were capable of meeting this requirement. Therefore, CrownTier Enterprise was evaluated as not capable of meeting the requirements.

- KPaul provided an email response to the synopsis. KPaul stated they were conducting a comprehensive review and did not provide a capabilities statement. A review of the company website identifies KPaul as a Technology Solutions Company. KPaul did not indicate they were capable of meeting this requirement. Therefore, KPaul was evaluated as not capable of meeting the requirements.

- Think I.N.C. LLC provided a capability statement in response to the synopsis. After review of their capabilities statement, Think I.N.C LLC’s capability statement did not identify waste storage as a capability and specialize in waste and recycling consulting services. Therefore, Think I.N.C. LLC was evaluated as not capable of meeting the requirements.

11. ACTIONS TAKEN TO REMOVE BARRIERS TO COMPETITION BEFORE ANY

SUBSEQUENT ACQUISITION FOR SERVICES ARE REQUIRED.

DOE does not intend to pursue additional or follow on services in connection with storage or loading support for transfer of this waste from the WCS site. Furthermore, it is impossible to remove these barriers because the 74 containers of TRU waste cannot be moved to another storage contractor’s facility at the present time.

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

CONTRACTING

OFFICER:

Cheryl Rodriguez Date Director Office of Cleanup Execution

DOE EM-Los Alamos Field Office I certify that this Justification is accurate and complete to the best of my knowledge and belief in accordance with FAR 6.303-2(b)(12).

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

COMPETITION __________________________________________

ADVOCATE: Amber Gray Date

Competition Advocate Office of Environmental Management

13. APPROVAL: __________________________________________

Angela Watmore Head of Contracting Activity DOE EM-Consolidated Business Center

Digitally signed by Tyler J. Ingalls Date: 2024.02.23 09:01:23 -07'00'