KZ NNC JA_2022_Amendment HCA signed_Redacted.pdf

Defense Threat Reduction Agency 8725 John J. Kingman Road, Stop 6201 Fort Belvoir, VA

22060-6201

JUSTIFICATION FOR OTHER THAN FULL

AND OPEN COMPETITION

Amendment I to Justification and Approval dated

August 11, 2021

Security and Elimination (S&E) Department

Global Nuclear Security (GNS) Kazakhstan

HDTRA1-20-C-0075 Project Minuteman

FINDINGS

Description of the Action:

The Defense Threat Reduction Agency (DTRA), contracting activity, proposes a Justification and Approval (J&A) for future contracting actions under Project Minuteman, HDTRA1-20-C-0075, without using full and open competition, to support infrastructure elimination, material security, and sustainment measures at the former Semipalatinsk Test Site (STS) in Kazakhstan. The tasks will be completed under HDTRA1-20-C-0075 as addressed in the contract Statement of Work

This document serves as Amendment I to the previous J&A approved on August 11, 2021. This amendment will add value and effort to the previous J&A.

Description of the Supplies/Services Required:

Under this contemplated course of action, the National Nuclear Center of Kazakhstan (NNC) will be tasked with performing all of the services required to execute sustainable nuclear security measures at STS and associated sites. This work will ensure long-term security of fissile and radioactive materials in support of GNS mission objectives identified in strategic guidance.

All subject work will be performed at STS and associated sites in Kazakhstan by the NNC.

, and results from a formal request for assistance from the Government of Kazakhstan (GOK).

The purpose of this J&A is to account for the necessary magnitude of scope of anticipated requirements.

The work to be performed was included at the time of contract award in the Statement of Work (SOW) for HDTRA1-20-C-0075 as unpriced options where the scale (or magnitude) of the work was not yet known. The initial design portion of the contract further refined the requirements and determined the level of magnitude for these tasks. This J&A also includes the definitization of emerging requirements covered under the general scope of this effort at the time of award, . The period of performance (PoP) for contract HDTRA1-20- C-0075 is 30 September 2020-29 September 2025. The PoP will not change with this amendment.

Previously a J&A was approved for a cumulative estimated value of $2,897,992.98. This amendment adds $16,001,402.31 for a total estimated value of $18,899,395.29.

Statutory Authority:

The statutory authority for this non-competitive action remains10 U.S.C. 2304(c)(1), as implemented by Federal Acquisition Regulation 6.302-1, only one responsible source and no other supplies or services will satisfy agency requirements. The Department of Defense (DoD) need not provide for full and open competition when only one or a limited number of responsible sources are available and no other supplies or services will satisfy agency requirements.

Applicability of Authority:

The statutory authority remains applicable because NNC is the only responsible, acceptable, and authorized performer for this work because Kazakhstan tightly restricts operations at STS by formal Presidential Decree No. 1002, the statutory vehicle with most supremacy in Kazakhstan, dated August 13, 1996, which establishes:

er of the Republic of Kazakhstan as the lead organization for the elimination of nuclear weapons infrastructure at the former Semipalatinsk test site, subject to the Agreement of December 13, 1993 between the Republic of Kazakhstan and the United States of America on the destruction of silo launchers of ballistic missiles, liquidation of the consequences of emergency situations and prevention of the proliferation of nuclear weapons and the Agreement of October 3, 1995 between the Department of Defense of the United States of America and the Ministry of Science and New

, DTRA determined that the Presidential Decree is still in effect. The NNC has full access to the STS and is specifically authorized by its government to enter into contracts for this type of work. The unique government-mandated status for NNC makes it impractical to seek other sources for this work. All NNC work is also executed within the purview of the December 13, 1993 Agreement Between the United States of America and GOK concerning the Destruction of Silo Launchers of Intercontinental Ballistic Missiles, Emergency Response and the Prevention of Proliferation of Nuclear Weapons and the October 3, 1995 Agreement Between the Department of Defense of the United States of America and the Ministry of Energy and Mineral Resources of the Republic of Kazakhstan Concerning the Elimination of Nuclear Weapons Infrastructure.

The Implementing Agreement itself determines the Ministry of Energy as the implementing agency for DTRA projects, with NNC being a part of the Ministry of Energy.

Effort to Solicit Potential Sources:

Per Presidential Decree No. 1002 dated August 13, 1996, NNC is the only entity allowed to perform this requirement in Kazakhstan.

Fair and Reasonable Costs:

The estimated total cost of all contract actions under this J&A is $18,899,395.29. The resultant cost/price of all contract actions under this justification will be determined to be fair and reasonable by the Contracting Officer. Sufficient historical data from previous efforts dates back to the 1990s and will be used to determine if proposed costs are fair and reasonable. This includes previous costs for similar work performed by the NNC at STS as well as the Independent Government Cost Estimate (IGCE). The combination of directly relevant historical data combined with an established business relationship with the contractor, will allow the Contracting Officer to anticipate negotiation of fair and reasonable prices for this work.

Market Research:

Market research was finalized on July 26, 2022. The research showed that the NNC is the only performer both capable of performing the work required at STS, and also the only performer permitted to perform the work by legal decree from the Government of Kazakhstan. Additionally, the research shows the NNC to be the only performer to have the required expertise, certifications, permits, and site access permissions to the STS, all of which are essential to execute the tasks covered under this contract.

Conducting a competitive action option or other contract vehicle would not be possible for the Government because no other performers have the required blend of mandate, access, expertise, and experience executing the work in question. The NNC has proven to be a reliable partner, and has displayed consistent technical competence, under multiple previous DTRA contracts. GNS does implement other contracts in support of projects at STS, but only for procurements and other technical reach back support.

Other Facts:

Kazakhstan requested urgent assistance from the United States in securing STS to prevent the proliferation of weapons-usable nuclear material and its associated infrastructure. The government agency responsible for non-proliferation issues is the Ministry of Energy and Mineral Resources, which replaced the Ministry of Energy, Industry and Trade in the following:

Energy and Mineral Resources of the Republic of Kazakhstan Concerning the Elimination of Infrastructure for Weapons of Mass Destruction, dated October 3, 1995, as amended June 10, 1996, September 9, 1998, December 17, 1999, July 29, 2000, May 31, 2002, April 2, 2003, June 28, 2004, Interested Sources:

As stated above, Kazakhstan Presidential Decree No. 1002 mandates that the NNC is the leading and only authorized organization for nuclear security work at STS.

Subsequent Actions:

No subsequent actions are anticipated at this time

Technical Certification

I certify that the data and information forming the basis for this justification are accurate and complete to the best of my knowledge and belief.

Project Officer, CT-SE Date

Contracting Officer Certification & Determination

I certify that the data and information forming the basis for this justification are accurate and complete to the best of my knowledge and belief.

Contracting Officer, AL-ACC Date

General Counsel Coordination

This justification is legally sufficient.

Attorney, GC Date

Competition Advocate Coordination

DateCompetition

Approval Authority

Based on the above justification and findings, I hereby approve accomplishment of this acquisition by means other than using full and open competition.

Head of Contracting Activity AL-AC Date