Pre-Solicitation_Industry_Day_SSSB_Dismantlement_and_Disposal_Presentation.pdf

Ray Duff, PAPM

CVN Inactivation & Disposal

PEO Carriers

202-781-2129

Surface Ship Support Barge (SSSB)

Dismantlement and Disposal

Pre-Solicitation Industry Day

30 July 2019

Forrest Tucker

Branch Head, Sub, CVN and LCS Maintenance Support

202-781-3183

Agenda

Introduction and Welcome Remarks

– Forrest Tucker (NAVSEA 024) and Ray Duff (PMS 312)

Ground Rules

– Forrest Tucker (NAVSEA 024)

Contract Security and Technical

– Stephen Picard (NAVSEA 08)

Contract Solicitation Process

– Forrest Tucker (SEA 024)

Closing Remarks

– Forrest Tucker (NAVSEA 024)

NAVSEA 02:

Contracts and Acquisition Directorate

NAVSEA 08:

Naval Nuclear Propulsion Directorate

PMS 312:

Program Executive Office Aircraft Carriers

Admin Announcements

All attendees must sign in

Briefing is unclassified

Turn cell phones OFF

Ground Rules

The objective for today’s industry day is to have an open discussion for the “Surface Ship Support Barge (SSSB) Dismantlement and Disposal” competition.

Dialogue is encouraged in both the plenary and one-on-one sessions.

Please ask questions as they come up during the brief. Note, however, that none of today’s dialogue is binding on any party

All technical and contract requirements within the presentation should be considered pre-decisional in nature

NAVSEA will lead this presentation. However, we are very serious about stakeholder input with an eye to better refining the requirement and subsequent solicitation

If there are any differences between this brief and the solicitation, the final solicitation will govern

Submit all questions in writing to the contracting officer at forrest.tucker@navy.mil and the contract specialist at sonya.diazdeleon@navy.mil by 9 August 2019 mailto:forrest.tucker@navy.mil mailto:sonya.diazdeleon@navy.mil

Statement of Work

Government will provide the SSSB to the contractor for local movement only while floating. Transport outside the inland waters of the Hampton Roads area shall be by heavy lift ship or barge.

Dismantle the onboard equipment, process scrap metals for recycling and dispose of all hazardous materials and solid waste:

• Hull and all remaining equipment/systems

• Disposal of radiological components/systems/spaces

• Sale of scrap metals permitted if desired by the Contractor

All work must be accomplished in accordance with federal, state, and local environmental, occupational safety & health laws and/or regulations

Contractor shall provide all the personnel, equipment, tools, vehicles, materials, facilities, supervision, security services and other items as required by the RFP

The contractor may use any part of the SSSB during dismantlement. However, the

SSSB will be provided “as is”, and the contractor will need to make any assessment of the usefulness and safety of any equipment used.

SECURITY REQUIREMENTS

Unclassified Naval Nuclear Propulsion Information (U-NNPI)

NNPI is all information, classified or unclassified, concerning the design, arrangement, development, manufacture, testing, operation, administration, training, maintenance, and repair of the propulsion plants of Naval Nuclear

Powered ships and prototypes including the associated shipboard and shore-based nuclear support facilities.

Sensitive unclassified military technology is protected by several Federal statutes and export control regulations. Naval Nuclear Propulsion technology is subject to these controls. Hence, U-NNPI is protected and subject to these controls.

The designation U-NNPI indicates that although the information is unclassified, it is subject to special handling controls, restricted access and distribution (export controls) and marking requirements and is not releasable to the general public without prior approval by the Government.

Requirements to obtain visual and physical access to U-NNPI for bid preparation were provided with the pre-RFP synopsis on FBO.gov.

Information security requirements in the Statement of Work reflect the controls in place during the period of performance of the contract.

Facility and Physical Security Requirements

Dismantling work MUST be accomplished in the United States.

Vessel and site MUST be available at all times for Government oversight.

The SSSB in its current physical condition has no classified material onboard, and no Unclassified Naval Nuclear Propulsion Information

(U-NNPI).

No facility clearance or personnel security clearances will be required for actual dismantlement of the SSSB.

Contractor shall have facility controls to prevent physical access to the

SSSB by unauthorized persons.

Information Security Requirements – Bid Preparation

Much of the technical documentation for the SSSB, including the

Technical Manual for the SSSB and many drawings, are controlled as

U-NNPI, largely because they contain descriptions of what work was performed on the barge.

• Potential bidders may desire access to this U-NNPI information during preparation of bids and decommissioning work plans.

• Procedures for obtaining visual and physical access to U-NNPI were included in the pre-RFP synopsis and apply to ALL potential vendors (i.e., regardless of interest as a prime-contractor or sub-contractor for this project).

• U-NNPI information on the SSSB will be provided to potential bidders subject to the requirements of NN-801 (Control and

Protection of Unclassified Naval Nuclear Propulsion Information)

– Adhering to the guidelines of NN-801 fulfills supplier and sub-tier supplier requirements of OPNAVINST N9210.3 for the protection of U-NNPI described in the RFI Industry Day on 6 November 2018.

Information Security Requirements – Bid Preparation

Reading Room

• Due to some of the available technical documentation requiring protection as U-NNPI, physical copies of the U-NNPI Government Furnished

Information (GFI) referenced in the contract will not be initially disseminated to interested vendors upon release of the RFP.

• Instead, NAVSEA will establish a “Reading Room” with available technical documentation, sampling results, drawings, and technical manuals to assist interested Suppliers in assessing whether to prepare a proposal in response to the RFP.

• The pre-RFP synopsis contained access requirements and terms governing the Reading Room.

• The Reading Room will be established in the vicinity of the Washington

Navy Yard, DC from 8 August through 29 August with signup opportunities for dates and times with the Contracting officer in advance of desired visit.

• Following initial scoping via the Reading Room, Suppliers intent on preparing a proposal may request physical copies of the GFI listed in the contract from the Contracting Officer.

Information Security Requirements – Dismantlement

Plans and procedures prepared by the contractor, including the

Decommissioning Work Plan, will have no information security restrictions provided they do not discuss specific work evolutions that were performed on the SSSB.

There is no need to rename any spaces, components, or systems on the

SSSB for the purpose of having plans and procedures with no information security restrictions.

Contractor must safeguard U-NNPI documentation provided by the

Government in accordance with the requirements of NN-801, as obligated by the contract.

Contractor may elect to certify Information Technology (IT) Systems for processing of U-NNPI in accordance with the requirements in the SOW.

Radiological Regulatory Arrangements

Detailed information on the planned Navy collaboration with the NRC was presented at the November 6, 2018 Industry Day. These plans, including the NRC involvement, have not changed.

The NRC Presentation provided at the November 6, 2018 Industry Day remains valid. This information will not be repeated at this pre-solicitation Industry Day.

The Notional Framework presented at the November 6, 2018 Industry

Day remains the regulatory framework. Since this Framework is being incorporated into the solicitation, and the Navy-NRC Interagency

Agreement, this Framework will not longer be “notional”.

SSSB INFORMATION

SSSB Nomenclature

The SSSB has had several different names. These different names will appear in several documents that will be available in the reading room.

The original name of the SSSB at the time of its conversion from a T-2

Tanker was the Prototype Waterborne Expended Fuel Container

(PWEFC).

In some early documents, the vessel was called the Refueling Barge.

During and after the refurbishment in the late 1980s, the vessel was designated at the Surface Ship Support Barge (SSSB).

SSSB Hull Conditions

The SSSB was made from the mid-section of a World War II T-2

Tanker.

T-2 Tankers, as well as other WWII merchant ships, had a well documented history of hull brittle fracture issues. Many of these concerns continued with the SSSB.

Some, but not all of these issues were improved by the extensive refurbishment and replacement of structure during the late 1980s refurbishment. But some of the original WWII material remains in the

SSSB.

The SSSB conditions, as well as some hull cracking experience, has resulted in special precautions being employed for the SSSB.

SSSB Floating Precautions

As a result of the SSSB hull conditions, the SSSB has been kept in a drydock for most of the last 30 years. The SSSB was only floated for short periods of time in order to move it to where it was needed or where it could be stored.

In the last two decades, special precautions have been used for floating the SSSB. In addition to pre-floating inspections, the floating evolution starts with flooding the drydock to a level of two feet above the drydock blocks. SSSB spaces are carefully inspected for leaks and potential flooding before further raising of the water level in the drydock.

When the SSSB is floating, the vessel in continuously manned with a crew that monitors spaces for water intrusion. On vessel pumping capability is provided.

These precautions are discussed in some of the available SSSB technical documents.

SSSB Floating Precautions – Cont.

The Statement of Work requires that the SSSB be carried to the dismantlement site by heavy lift ship or barge, if the dismantlement site is outside of the Hampton Roads area. Government reserves the right to require an “on-hire survey” of the lift ship or barge.

• The Statement of Work also requires that the SSSB be loaded onto the ship or barge in the immediate Hampton Roads area.

• NAVSEA does not intend to specify whether an in-water or drydock loading is performed in the Statement of Work

• This requirement is established because of the history of hull concerns resulting from the original T-2 Tanker material in the SSSB.

Beyond the requirement for carrying the SSSB on another vessel during transport, the NAVSEA has not specified what controls and precautions the contractor should specify during dismantlement operations.

• However, issues of hull condition and appropriate precautions and controls will need to be addressed in the Decommissioning Plan.

• Since there are potentially different methods that can be utilized to address these concerns, the Navy is not specifying controls other than the basic requirement that the SSSB not be towed in the open ocean.

Spent Fuel Water Pool RLW Inventory

Previous RFI/Industry Day discussed disposition of the ~160,000 gal. of

RLW in the SSSB spent fuel water pool would be included in the

Statement of Work; NAVSEA has reconsidered this requirement.

NAVSEA is taking action through HII Newport News Shipbuilding to remove and disposition the large majority of the RLW prior to turnover of the SSSB for dismantlement.

• Temporary liquid transfer system [e.g., demineralizers, pumps, piping, and holding tank(s)] and soft cover [e.g., supported by a structural frame] with a HEPA filtered vent will be installed over the water pool.

• Following pump-down, the liquid transfer system and cover will remain onboard for disposal as part of the Statement of Work.

• The remaining water in the pool (~18” from bottom) will help minimize the movement of radioactive contamination near the bottom of the pool while removing the potential of water overflow during SSSB movement.

Water Pool Liner Integrity

The SSSB spent fuel water pool has a stainless steel liner. However, the wet pit does not contain a leak detection system or water collection channels under the liner.

The SSSB had a history of liner leakage prior to the mid 1990s refurbishment. This leakage became evident by water leaking out of the structure on the other side of the concrete shielding. During the refurbishment, the liner leakage was repaired.

Although there has been no history of water leaking out of the wet pit structure in the last few decades, there is no objective evidence that some additional wet pit radioactive water did not reach the concrete. Also, during the refurbishment, there was no effort to sample or replace the concrete that was wetted by the earlier leakage.

The potential for contaminated concrete is one reason why the contract provisions call for a fairly large waste disposal easement that should be sufficient even if much or all of the wet pit structure and concrete requires disposal as low-level radioactive waste.

Use of SSSB Systems

The Contractor may use any existing systems remaining on the SSSB during dismantlement. However, much of this equipment is fairly old, and no warranty is made about the adequacy of serviceability of any of these systems. Ventilation systems provide a good example:

• The SSSB ventilation systems were designed, sized, and arranged for operations in conjunction with an operating water pool.

• The water pool itself provides the primary means of controlling the loose surface radioactivity on the highly contaminated components that were handled in the SSSB.

• Ventilation that was adequate for the operating water pool conditions may not be adequate for dismantlement work that is conducted in dry conditions where loose radioactivity may become airborne more readily.

The Decommissioning Plan will need to address the adequacy of all systems and controls employed during the dismantlement.

ELIGIBILITY / TECHNICAL

REQUIREMENTS

Nuclear Liability Insurance

Based upon input received from industry in response to the

SSSB RFI, NAVSEA will not require commercial nuclear liability insurance for this project since it might not be available.

NAVSEA does not consider that the risks involved with handling the relatively small amount of radioactivity in the

SSSB warrants indemnification through Public Law 85-804.

• One of the eligibility criteria will be written corporate agreement to perform this contract without nuclear indemnification under

Public Law 85-804.

Performance Bond

The Eligibility Requirements include written agreement by a third-party financial institution to provide a performance bond valued at 20% of the total contract price, to be effective the date the Contractor takes possession of the SSSB.

After the contractor has obtained NRC recommendation for custody transfer and the Navy transfers custody of the SSSB, successful completion of the work is under the control of the Contractor. Thus it is appropriate for the performance bond to become effective at this point in the contract.

Radioactive Waste Disposal Easement

One of the Eligibility Requirements is demonstrated ability to provide an easement, or other contractual right, for the Navy to dispose of up to

500,000 cubic feet of low-level radioactive waste containing no more than

10% of NRC Class A limits from dismantlement of the SSSB to be effective upon the date the Contractor takes possession of the SSSB.

Alternatively, an offeror can provide written agreement by a third-party financial institution to provide an additional performance bond for completion of the contract valued at 30% of the total contract price (i.e., increase the value of the performance bonds to 50% of the total contract price), effective the date the Contractor takes possession of the SSSB.

The Contractor may use this radioactive waste disposal capacity as radioactive waste is shipped for disposal during performance of the contract. Any portion of this easement that remains unused at the completion of the contract would revert from NAVSEA back to the contractor.

Selection of the Dismantlement Site

NAVSEA will not select the dismantlement site. The offerors will determine the site at which they will perform the dismantlement.

One Eligibility Requirement will be written agreement from the owner of the dismantlement site that SSSB dismantlement operations are allowed at that site.

Another Eligibility Requirement will be evidence that the State and local jurisdictions do not have any objection to this type of work being conducted in that State and jurisdiction.

NRC-Regulated Decommissioning Experience

An Eligibility Requirement will be evidence, such as a completion report/NRC closure letter, that the offeror has completed as the prime contractor, under NRC license and regulation, one or more radiological decommissioning, dismantlement or remediation project with aggregate contract value of at least $50M (in 2018 dollars) and within the past five

(5) fiscal years.

Additional Eligibility Requirements

Provide written agreement and plan to subcontract at least

20% of the contract value to small business.

Participate in mandatory SSSB vessel ship check after

Solicitation issuance.

The “Notional” Framework

“Throughout this entire process, it is the intention of both NRC and

NAVSEA that SSSB dismantlement and disposal be conducted, as closely as possible, in accordance with NRC regulations. However, in, no case would the NRC act directly as a regulator of the decommissioning contractor company, but rather would provide all recommended approvals, recommended disapprovals, requests for additional information, inspection results, and recommended enforcement actions or penalties to NAVSEA. It would be NAVSEA’s intent to enforce the NRC’s recommended actions by contract, without any addition to or subtraction from, the NRC’s recommendations.”

Having found no fundamental objection to this Notional Framework, the

Framework has been incorporated into the structure of this contract. In that sense, the Framework is no longer “notional”.

NAVSEA will be contractually obligated to enforce NRC recommendations, without addition or subtraction.

The Contractor will be contractually required to correct NRC-identified areas of non-compliance with NRC regulations.

Incentive Fee – 2% of Contract Price

This fee provides an incentive for the Contractor’s successful completion of the dismantlement/disposal of the SSSB. The predetermined incentive will be reduced if monetary penalties, such as fines if this were NRC-regulated work, are assessed under the Notional Framework during the contract period of performance.

The payment of the incentive fee shall be subject to the following evaluation criteria:

• To be eligible for the full payment of the incentive fee, the Contractor shall complete dismantlement and disposal of the SSSB without incurring

NRC-identified infractions carrying a recommendation of financial penalty.

• Should NRC assess Contractor violation(s) during the period of performance, the incentive will be reduced, as recommended by NRC.

Each additional incidence of a violation will result in further incentive fee reductions.

CONTRACT SOLICITATION

PROCESS

Contract Overview

• Single Award, Firm Fixed Price contract with a radiological regulatory compliance incentive fee

• Award to the Lowest Price Technically Acceptable (LPTA)

• Upcoming Milestones

• Solicitation Issued: August 2019

• Mandatory Tour: 4 – 25 September 2019

• Proposals Due: Mid-October 2019 (60 days)

• Projected Award: April 2020

CLIN DESCRIPTION PERFORMANCE-BASED PAYMENTS (Section F)

0001 Decommissioning Work Plan, Facilities and Licensing

Requirements, Physical Security

Requirements, and Control and

Protection of U-NNPI on IT

Systems

1. Submit Decommissioning Work Plan to NRC for review:

10%

2. NRC recommends Custody Transfer: 10%

0002 Transport SSSB to Dismantlement

Site

3. Transport SSSB to Dismantlement Site: 10%

0003 Dismantlement and Disposal of the

SSSB

4. Remove water, processing and radioactive equipment in the dry pit, heavy equipment ship and hot tunnel: 10%

5. Remove the wet pit and associated shielding: 15%

6. Receive NRC recommendation that the remainder of the

SSSB can be released from further radiological regulatory oversight: 15%

7. Complete all SSSB material recycling and disposal: 15%

8. Receive NRC recommendation that dismantlement site can be released: 10%

9. Certification of completion – release holdback: 5%

0004 Data Items

0005 Incentive Fee for CLINs 0001, 0002, and 0003

2% of contract price

CLIN Structure

Section L – Instructions to Offerors

The Government will award on the basis of the lowest evaluated price of proposal meeting or exceeding the acceptability for non-cost factors.

Proposals not found technically acceptable will not be evaluated.

Volume Title Page Limit

N/A Cover Letter/Executive

Summary

I Technical Proposal 50*

II Past Performance 3 per reference

III Price Proposal N/A

* Under review - Industry comment requested

Section M – Evaluation Factors

In order to make a Best Value determination, the Government will evaluate three (3) non-price factors and the Offeror’s total evaluated price:

Factors

Volume 1 Technical Proposal Factor 1: Eligibility

Factor 2: Technical Capabilities

Factor 3: Past Performance

Volume II Price Proposal Factor 4: Price

Proposal

Evaluation

SSSB Disposal Solicitation Process

Release

Solicitation

August 2019

Notice of

Apparent

Awardee

Contract

Award

Spring 2020

Proposals

Submitted

(60 days)

Contractor

Debrief

Post

Award

Conference

Closing Remarks

A copy of today’s brief will be posted to www.fbo.gov (FedBiz)

Submit all questions in writing to the contracting officer at forrest.tucker@navy.mil and the contract specialist at sonya.diazdeleon@navy.mil by 9 August 2019

Thank you for attending and your interest in NAVSEA’s

Surface Ship Support Barge (SSSB) Disposal Project.

NAVSEA values your input http://www.fbo.gov/ mailto:forrest.tucker@navy.mil mailto:sonya.diazdeleon@navy.mil