B03 Justifcation and Approval Greater than SAT_Final redacted.pdf

J&A Number: N00167-25-

SIMACQ-CD-63-0030

Code: Code 631

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

The Naval Sea Systems Command (NAVSEA), Naval Surface Warfare Center, Carderock Division (NSWCCD), Contracting & Acquisitions Department (Code 02).

2. Description of the Action Being Approved

This is a sole source action to be awarded without providing for full and open competition. The NSWCCD intends to award a contract for services to Hopewell Designs, Inc. located at 5940 Gateway Drive, Alpharetta, Georgia 30004.

This justification document is in accordance with FAR 13.501(a).

3. Description of Supplies/Services

NSWCCD Radiation Detection Technology Branch (RDTB), Code 631, intends to enter into a 3-year services Blanket Purchase Agreement (BPA) for the annual storage, and shipment and delivery of government-owned Cesium-137 sources to various Navy RADIAC Calibration Laboratory (RCL) sites. This purchase supports work for the gamma calibrator (AN/UDM-1C) project. All sources were previously purchased in advance, rather than purchased as needed, due to concerns of limited supply. Therefore, storage, shipment, and delivery of an unusually large amount of sources under a valid radioactive material license are required. A provider would also be required to transfer the sources from Hopewell to the other provider, and then back to Hopewell to continue execution of work for gamma calibrators under contract N00167-20-P- 0071.

The below table provides estimated funding amounts for support of radioactive source storage and transportation services by dollar value, fiscal year, and appropriation.

The total estimated value of this acquisition is $

The Period of Performance will be three years from the award of the Agreement.

DEPARTMENT OF THE NAVY

NAVAL SURFACE WARFARE CENTER

CARDEROCK DIVISION

9500 MACARTHUR BOULEVARD

WEST BETHESDA MD 20817-5700

Funds Type Base FY25 FY26 FY27 Total

OPN $ $ $ $

The Government’s minimum needs have been verified by the certifying technical and requirements personnel.

The Product Service Code (PSC) for this procurement will be S215, Housekeeping, Warehousing/Storage; and V119, Transportation/Travel/Relocation – Transportation: Other.

4. Statutory Authority Permitting Other Than Full and Open Competition.

The statutory authority permitting other than full and open competition is 10 U.S.C. 3204(a)(1), as implemented by FAR 13.501(a), “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. Rationale Justifying Use of Cited Statutory Authority

In FY20, the RDTB, Code 631 contracted with Hopewell Designs, Inc. (HDI), via N00167-20-P- 0071, for services to install AN/UDM-1C gamma calibrators at eight RCL facilities, which included the purchase of Cesium-137 sources. The RADIAC Program Office, through the RDTB, Code 631 requires additional services to support the storage, shipment and delivery of the government-owned Cesium-137 sources to be installed into these AN/UDM-1C gamma calibrators. This new contract will support on-going work of contract N00167-20-P-0071 for installation of AN/UDM-1C gamma calibrators.

All Cesium-137 sources were previously purchased in advance, rather than purchased as needed, due to concerns of limited supply. Therefore, storage, shipment, and delivery of sources are required and finding a suitable provider has proven challenging due to the requirement to possess an unusually large amount of sources under a valid radioactive material license.

The Government performed an internet research of companies that could provide storage services of radioactive sources. In the internet research, Nuclear Shields was identified. A catalog of several types of storage containers was identified. None of the containers are suitable for the Government’s requirement due to not being able to store sources that are of the amount of the Government’s radioactive source activity.

Based on the webpage of JL Shepherd, the company is capable of handling sources as high as 80,000 Curies (Ci). The Government assessed that this quantity is more than enough for the requirement. The amount of the Government’s radioactive source activity (Ci) is sensitive information. An email chain between the Government and JL Shepherd is provided which documents the company’s decision not to offer services for the Government’s requirement.

Based on the webpage of Eckert and Ziegler, the company is capable of handling radioactive sources as high as 40,000 Ci. This quantity is more than enough for the requirement.

Based on the webpage of Ludlum Measurements, the company does not have the capability to store a large amount of radioactive sources. The company is able to provide other services such as calibration, repair, and troubleshooting of radiation equipment.

Although some providers were found to handle and store a large amount of radioactive sources, to transfer the sources from Hopewell to another provider and then back to Hopewell to continue execution of work for gamma calibrators under contract N00167-20-P-0071 would result in additional unnecessary costs to the Government and unnecessary radiation exposure to personnel. Hopewell currently stores these sources, and when required by the Government, uses the sources to support on-going work under contract N00167-20-P-0071.Radioactive sources also required radiation safety documentation that could cause delays in the schedule when obtaining official signatures. As such, the entire transfer of sources back and forth is not reasonable.

HDI is the original manufacturer of the AN/UDM-1C gamma calibrators. To award this services to a source other than HDI would produce an unnecessary safety hazard that would result in unnecessary radiation exposure to personnel to transfer storage custody of the source from one company to another. To utilize another company for source storage would also result in additional paperwork for review and wait time for approval to handle radioactive source which would cause a delay and jeopardize the delivery schedule of the current contract with HDI.

6. Description of Efforts Made to Solicit Offers from as Many Sources as Practicable

There have been efforts to solicit offers from other sources. The NSWCCD Code 631 has determined that very few, if any, providers are able or willing to provide the source storage and delivery services required, and seeking an outside company to provide source storage and delivery services is not practical and disrupts safety and installation schedule for the Navy’s AN/UDM-1C gamma calibrator project.

Notice of this justification will be provided on the Government point of entry SAM.gov in accordance with FAR 13.501(a)(1)(iii).

7. Determination of Fair and Reasonable Costs

In accordance with FAR 13.106-3(a), the Procuring Contracting Officer (PCO) shall ensure that all services provided under the anticipated contract are procured at a fair and reasonable price.

The Government will require the contractor to submit a formal price proposal and sufficient information to support the accuracy and reliability of the estimate. The PCO shall determine that the proposed order represents the best value (as defined in FAR 2.101) to meet the Government’s needs. The NSWCCD Code 631 has not procured similar source storage services from any company. However, for this purchase, they used information from internet research and ROM pricing of disposal services for radioactive sources to derive their cost estimate for multi-year source storage costs. The PCO will rely on this pricing information as well as information from contract specialists, to form the basis for a fair and reasonable price.

8. Actions to Remove Barriers to Competition

For the current AN/UDM-1C gamma calibrators, all sources were purchased in advance due to concerns of limited supply, rather than the preferred method of purchasing the sources as needed.

Due to all sources being purchased in advance, the requirement for storage, shipment, and delivery of the sources is required. At the end of life of the AN/UDM-1C gamma calibrators, estimated to be about thirty years, the NSWCCD will consider purchasing the next generation gamma calibrators to determine if other manufacturers meet the Navy’s requirement. This consideration will also evaluate if storage, shipment, and delivery of radioactive sources would be a requirement. At this time, the Government continues to operate in a sole source environment until replacement of the gamma calibrators occur at a future point in time.

CERTIFICATIONS AND APPROVAL

TECHNICAL AND REQUIREMENTS CERTIFICATION - (FAR 6.303-2(c))

I certify that the facts and representations under my cognizance, that are included in this justification and its supporting data, except as noted herein, are complete and accurate to the best of my knowledge and belief.

TECHNICAL and REQUIREMENTS COGNIZANCE:

CONTRACTING OFFICER CERTIFICATION FAR 13.501(a)(2)(i) I certify that this justification is accurate and complete to the best of my knowledge and belief.

Michelle Siebeking-Knox PCO 0233 757-974-5118 Date

Digitally signed by SIEBEKING-

KNOX.MICHELLE.RENEE.1025111016

Date: 2025.07.03 08:45:49 -04'00'

ADVOCATE FOR COMPETITION- APPROVAL BLOCK (FAR 13.501(a)(2)(ii) for a proposed contract exceeding $750,000, the Advocate for Competition approval)

Upon the basis of the above justification, I hereby approve, as Competition Advocate for the Contracting Activity, the solicitation of the proposed procurement(s) using other than full and open competition, pursuant to the authority of 10 U.S.C. 3204(a)(1).

Signature Code 02 Phone Date

Digitally signed by SIEBEKING-

KNOX.MICHELLE.RENEE.1025111016

Date: 2025.07.03 08:46:06 -04'00'