Industry Day__cvn 65 DD Presentation_ 030723 FINAL.pptx

Ray Duff, APM CVN Inactivation & Disposal PEO Carriers 202-781-2129

Ex-Enterprise CVN 65 Dismantlement and Disposal March 8, 2023

Jim McGowan Contracting Officer

NAVSEA02HQ 0241

202-210-4877

Agenda Introduction and Welcome Remarks CAPT Bryant Cleveland PMS 312 (RCOH/INAC (PAPM)) Jim McGowan (NAVSEA 02) Announcement of Ground Rules Jim McGowan (NAVSEA 02) Requirements of “Draft” SOW Ray Duff (PMS 312) Stephen Picard (NAVSEA 08) Notional Regulation Construct Stephen Picard (NAVSEA 08) Potential Contract and Solicitation Process Jim McGowan (NAVSEA 02) Closing Remarks Jim McGowan (NAVSEA 02)

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.

Please restrain from discussing “NOFORN” technical details.

Turn cell phones OFF

Ground Rules The objective for today’s industry day is to have an open discussion for the “Ex-Enterprise CVN 65 (vessel) Dismantlement and Disposal” competition, specifically clarifying particular aspects of the RFI.

Dialogue is encouraged in both the plenary and one-on-one sessions. Note, however, that none of today’s dialogue is binding on any party. Also, please refrain from discussing any “NOFORN” ship design technical details.

All technical and contract requirements within the presentation should be considered notional and 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 james.f.mcgowan6.civ@us.navy.mil and the contract specialist at robert.c.whitlow.civ@us.navy.mil by 23 March 2023.

Ex-Enterprise Disposal Environmental Impact Statement (EIS) Purpose of this RFI is to conduct market research and refine the concept of commercial dismantlement and disposal of Ex‑ENTERPRISE, to include contract structure and project technical requirements.

The Navy is preparing an Environmental Impact Statement (EIS) on Ex‑ENTERPRISE disposal, which must complete and a Record of Decision (ROD) selecting the method described in the RFI issued before the project can proceed.

The Navy anticipates completing the EIS and issuing the ROD in 2023.

“DRAFT” Statement of Work Government will provide the vessel to the contractor at a mutually agreed to location following NRC concurrence and NAVSEA authorization to transfer custody of the vessel. The location is expected to be close to the disposal contractor’s facility. NAVSEA 00C will transport the vessel at a date mutually agreed to by the Navy and disposal contractor.

Radiological work will only commence after the contractor-prepared Decommissioning Work Plan (DWP) has be reviewed by the NRC and approved by NAVSEA.

Dismantle the vessel and 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 disposal contractor

“DRAFT” Statement of Work 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.

Contractor may use any part of the vessel during dismantlement. However, the vessel will be provided “as is”, and the contractor will need to make any assessment of the usefulness and safety of any equipment used.

Fire Protection and Safety The Navy intends to adopt the NRC regulations for fire protection programs for decommissioned nuclear power plants for dismantlement and disposal of the reactor plants and radiologically controlled support systems.

The goal of the fire protection program envisioned during this project is to provide an appropriate level of defense-in-depth protection against the threat of fires.

Defense-in-depth for fire protection involves a comprehensive program of administrative controls, physical fire protection features, emergency response capabilities, and protection of radiologically controlled structures, systems and components necessary to prevent or mitigate the potential of an unacceptable release of radioactive materials.

Fire Protection and Safety Fire protection requirements and response capabilities for the reactor plants and radiologically controlled areas will evolve throughout the project, commensurate with ongoing work and associated fire hazards.

The Contractor’s fire protection program is expected to include outreach, coordination, and training with mutual aid emergency response.

For non-nuclear shipbreaking activities (i.e., involving non-radiologically impacted portions of the vessel) fire protection requirements will be in accordance with OSHA requirements and applicable State and local requirements.

NRC and OSHA have a MOU for safety programs at nuclear decommissioning sites; although a similar arrangement may be applicable to this project, this aspect is still under development for Ex-ENTERPRISE.

Information and Physical Security Requirements The ship, to include the hull and any passive protection features, and defueled reactor plants contain no physical equipment, structures, or arrangements that are classified.

No classified information is necessary (or will be provided) to plan or accomplish the notional scope of work to dismantle and dispose of the vessel and associated reactor plants.

Facility and personnel security clearances are not required to complete the scope of the project.

However, the propulsion plants do include Controlled Unclassified Information (CUI) designated as Unclassified Naval Nuclear Propulsion Information (U-NNPI).

Based on the presence of U-NNPI on the vessel and the need to process U-NNPI to plan and accomplish the scope of work, all employees, subcontractors, and other persons with direct access to propulsion plant spaces and U-NNPI Government Furnished Information (GFI) shall be U.S. Citizens with demonstrated Need to Know (NTK).

Other forms of CUI related to design of the ship require similar protections and shall only be accessible by U.S. Citizens with demonstrated NTK.

Regulated and Hazardous Material Waste Removal and Disposal Contractor is sole generator of non-radiological hazardous waste; Government will not be a co-generator on any permits.

Contractor shall provide the Government with copies of hazardous/non-hazardous material/waste manifests, bills of lading, and other waste shipping documents as requested and in final report.

Upon completion, Contractor will certify all hazardous material removal complied with Federal, State, and local laws.

Contractor shall be responsible for:

Obtaining all necessary licenses and permits; provide copies to Government upon request Accomplishing all notification and manifesting requirements Complying with any applicable Federal, State, and local laws and regulations Taking any necessary corrective actions resulting from work performed in violation of applicable Federal, State, and local laws and regulations Providing immediate notification to ON-SITE Government representative and results of any regulatory agency inspection or visit and any citations or cautionary notices received

Regulatory Model for Radiological Work Accomplishment of the radiological dismantlement (decommissioning) effort will be conducted using Nuclear Regulatory Commission (NRC) regulations with enforcement for compliance provided via the contract.

For purposes of this project, the Contractor would refer to the responsibilities of a “licensee” within NRC regulations for management of the nuclear decommissioning work. These regulations would be enforced by the Navy through the contract.

NRC is envisioned to provide the same reviews prior to dismantlement and apply the same inspection program as would be required if a similar task were performed in the NRC regulated sector.

The Navy would neither add or subtract from the NRC recommended enforcement or corrective actions; the Contractor would be responsible to address these issues at no-cost and within the scope of the contract terms and conditions.

The Navy considers that such an arrangement provides a regulatory and contractual framework that is functionally identical to that associated with commercial nuclear power station decommissioning.

All reactor plant dismantlement, packaging, and disposal activities shall be in accordance with the Contractor’s approved DWP; the DWP will be incorporated into the contract requirements when reviewed by the NRC and approved by the Navy.

Contractor shall restore the dismantlement site to an acceptable radiological condition supporting unrestricted use.

Performance of Radiological Work The Navy’s intent is to ensure this work has no adverse effect on human health or quality of the environment.

All reactor plant dismantlement, packaging, and disposal activities shall be in accordance with the Contractor’s approved DWP; the DWP will be incorporated into the contract requirements when reviewed by the NRC and approved by the Navy.

All radiological dismantlement and sizing evolutions shall be performed in Contractor established radiologically controlled areas either inside the volume of the ship (i.e., within the hull and/or under the flight deck) or inside a weather protected containment volume. This requirement shall be reflected in the Contractor’s approved DWP.

Material identified as potentially radiologically impacted shall either be disposed of as LLRW, or when cost effective and radiation exposure is maintained ALARA, material may be surveyed for release and unrestricted use.

Performance of Radiological Work (cont) Work planning should only allow storage of materials in full-strength shipping containers when material is stored outside of the ship or containment volume (i.e., awaiting shipping). The volume of onsite packaged radioactive waste should be minimized by prompt shipment to disposal vendors.

The Contractor must apply appropriate environmental monitoring and effluent management programs in the DWP to achieve the overall goals of no adverse effect on human health or quality of the environment.

Upon completion of the scope of work, the Contractor shall restore the dismantlement site to an acceptable condition supporting unrestricted use.

Indemnification Against Nuclear Risks (FAR Part 50) The scope of work involves “by-product material,” as such materials are defined in the Atomic Energy Act of 1954, as amended.

The Navy has not made a determination on the applicability of the contractual provisions for indemnification against nuclear risks under Public Law 85-804 and the framework and requirements for implementation of such an indemnity agreement described in Federal Acquisition Regulation (FAR) Part 50.

The decision authority for an indemnification action under PL 85-804 and FAR Part 50 in Navy contracts is the Secretary of the Navy (SECNAV).

The Navy seeks information from the perspective of potential Contractors regarding the specific nuclear risks involved with the project scope of work, how the Contractor might be exposed to those risks, and whether losses associated with those risks would otherwise be compensable by insurance policies.

Expected Interactions Between NRC and Disposal Contractor NRC will review and recommend whether the Navy should approve a request for the Contractor to take possession of Ex-ENTERPRISE and associated radioactivity. This request will be provided as part of Contractor proposals, with the NRC review and NAVSEA approval occurring after Source Selection activities complete.

NRC will review and recommend whether the Navy should approve the Contractor developed Decommissioning Work Plan (DWP), as well as develop and deliver appropriate level of environmental analysis (e.g., environmental review or environmental assessment) consistent with the proposal.

The Contractor will lead periodic project review teleconferences for NRC and the Navy, with frequency (i.e., weekly, bi-weekly) dependent on the ongoing and upcoming scope of work.

NRC will conduct ON-SITE inspections of the project and review of Contractor programs supporting the decommissioning work.

Financial Assurances and Guarantees Overall goal – to mitigate technical, financial, and reputational risks to the Navy by ensuring dismantlement and disposal of Ex-ENTERPRISE will be completed by a technically qualified contractor.

Contractual arrangements between commercial utility operators and decommissioning contractors that facilitated transfer of the NRC licenses for several nuclear power stations provided assurances and guarantees to mitigate technical and financial risks, and ensured the Public’s interest in the decommissioning was upheld. These arrangements included performance bonds, and radioactive waste disposal easements.

1.5M cu-ft waste disposal easement.

Performance bond valued at 20% of the contract price;

The Navy considers these financial assurances and guarantees from these license transfers could be adapted to the Ex-ENTERPRISE dismantlement to achieve similar mitigation for technical and financial risks, with one important difference: the Contractor would not hold title to the ship.

Potential Contract and Solicitation Process

NAVSEA considering a “net price award” under Firm Fixed Price contract terms with regulatory compliance incentive fee.

Contractor applies proceeds from the sale of scrap and reusable equipment to offset price of performance These estimated proceeds must be factored into proposed price

Mandatory “shipcheck participation” at Newport News, VA required for proposal submission.

CLIN structure still being evaluated, project notionally:

Application and approval to transfer possession of the vessel from the Navy to the disposal Contractor under the Notional Framework Preparation and approval of the Decommissioning Work Plan (DWP) Dismantlement and disposal activities Completion of all radiologically controlled work

Radiological regulatory compliance incentive fee will be a predetermined amount, to be paid on the successful completion of the dismantlement/disposal of the vessel.

Full incentive is reduced if monetary penalties (i.e., fines if this were NRC-regulated work) are assessed under the Notional Framework during the contract period of performance.

Potential Contract Dismantling MUST be accomplished in the United States.

The vessel and site MUST be available at all times for Government oversight and ON-SITE Government oversight will be provided.

Award would be made to the responsible offeror based on:

Technical approach Management approach Schedule Past performance Price Determination of whether an offeror is technically qualified will include the capabilities and past experience of the offeror on similar or more challenging work.

A technically compliant proposal will include the demonstrated ability of the offeror to meet the strong financial guarantee requirements.

Price includes the sum of the fixed price to complete the project and the radiological regulatory compliance incentive fee.

Proposal – Required Technical Content As part of the solicitation process, Contractors should expect Government to request at a minimum the following to evaluate the technical adequacy of the proposal.

Plans covering:

Transfer of Possession in accordance with Notional Regulatory Framework Preparing the facility to accept the vessel for dismantlement and disposal Compliance with federal, state and local regulations for safety & health, environmental and fire safety Environmental and radiological remediation Sale of scrap and reusable equipment/materials.

Procedures and techniques used to dismantle and dispose of the vessel.

Measures to prevent fire, flooding, and sinking during dismantlement.

Closing Remarks A copy of today’s brief will be posted to www.sam.gov

Submit all questions in writing to the contracting officer at james.f.mcgowan6.civ@us.navy.mil and the contract specialist at robert.c.whitlow.civ@us.navy.mil by 23 March 2023.

Thank you for attending and your interest in NAVSEA’s Ex-Enterprise CVN 65 Dismantlement and Disposal Project.

NAVSEA VALUES YOUR INPUT

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