NFS JOFOC Scope Amendment Final January 2023.pdf

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JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

NATIONAL NUCLEAR SECURITY ADMINISTRATION

OFFICE OF THE URANIUM PROGRAM MANAGER

89233121CNA000175

January 2023

I. AGENCY IDENTITY AND CONTRACTING OFFICE

The Office of Secondary Stage Production Modernization (NA-195) of the U.S. Department of Energy (DOE), National Nuclear Security Administration (NNSA) plans to contract for additional services to convert impure Highly Enriched Uranium (HEU) metals and oxides to purified uranium metal buttons by means of other-than-full-and-open competition. The contracting activity is the NNSA Contracting Operations Division, Headquarters Services Acquisition Branch (NA-PAS-314).

II. NATURE AND/OR DESCRIPTION OF THE ACTION BEING APPROVED

This document sets forth the justification and approval of the use of one of the exceptions to full-and-open competition allowed under the Competition in Contracting Act (CICA) of 1984. This action is for additional scope within an existing three-year sole source acquisition to Nuclear Fuel Services, Inc. (NFS), 1205 Banner Hill Rd, Erwin, TN 37650, to demonstrate their ability to purify impure highly enriched uranium (HEU) oxides and convert them into purified oxide and metal buttons, using a surrogate material, in support of the NNSA Uranium Program Manager.

III. DESCRIPTION OF SUPPLIES AND/OR SERVICES

NNSA is currently in Phase I, License, Proof of Concept and Design, of a purification and conversion services contract with Nuclear Fuel Services (NFS) in Erwin, Tennessee.

Throughout Phase I NFS has made significant progress and completed all critical milestones ahead of schedule. NNSA has identified additional scope for the Phase I contract, which remains within the three-year contract period of performance and will allow NFS to improve the fidelity of the purification and conversion process design and ensure continued and consistent effort by NFS throughout Phase II contract negotiations.

The estimated total cost of this additional scope is $10,055,105 for a new Phase I contract total of approximately $67,534,183.

IV. AUTHORITY

The statutory authority permitting other than full and open competition is 41 U.S.C.

§ 3304(a)(1), as implemented by Federal Acquisition Regulation (FAR) Subpart 6.302-1 entitled

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“Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.”

V. APPLICATION OF AUTHORITY

NFS is the only responsible source capable of meeting NNSA’s requirements to convert impure uranium metals and oxides into purified HEU metal buttons, because NFS controls the only Nuclear Regulatory Commission licensed, Category 1 nuclear processing facility, with the capability to meet NNSA’s production requirements in the near term.

VI. EFFORTS TO IDENTIFY ADDITIONAL SOURCES

Through informal market research (see § VIII), NNSA was only able to identify two commercial facilities that possess the requisite NRC licenses and potential capabilities to meet NNSA’s requirements: the NFS facility in Erwin, TN; and a BWXT facility in Lynchburg, VA. NNSA’s market research confirmed that the latter facility did not have the capability to meet NNSA’s requirements in the near future.

Additionally, on June 25, 2019, NNSA posted a Synopsis/Notice of Intent to Sole Source to Federal Business Opportunities (FedBizOpps), allowing responsible sources that believe they could perform the required services an opportunity to submit a capability statement. NNSA did not receive any responses by the closing date of July 10, 2019. The three-year contract was awarded on February 26, 2021, with a period of performance of March 1, 2021 – February 29, 2024. On December 19, 2022, NNSA posted a Synopsis/Notice of Intent to Sole Source to the System for Award Management (SAM.gov), allowing responsible sources to submit a capability statement for the additional work. NNSA did not receive any responses by the closing date of January 2, 2023.

VII. DETERMINATION OF REASONABLENESS OF COST OR PRICE

The Contracting Officer has determined, as part of the evaluation of the vendor’s proposal, that the costs are fair and reasonable based on a combination of cost and price analysis of the contractor’s proposal. This additional work is being procured on a firm-fixed-price basis.

VIII. MARKET RESEARCH

Market research, in the form of engaging the U.S. Nuclear Regulatory Commission, validates that NFS is the only available NRC-licensed Category 1 nuclear facility capable of processing HEU. NRC is the sole federal authority which grants licenses to operate domestic nuclear facilities.

IX. OTHER FACTS

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There are no other facts relevant to this Justification for Other than Full and Open Competition.

X. INTERESTED SOURCES

NNSA posted a “Synopsis/Notice of Intent to award a sole source contract to NFS” on December 19, 2022, seeking capability statements from responsible sources that believed they could perform the required services, but received no capability statements.

XI. STEPS TO FOSTER COMPETITION

NNSA will continually monitor the market to determine whether any new vendors have been licensed by the NRC to commercially process HEU.