NNSA-2021-003057 - Uranium Reserve Program RFI 8.11.21.pdf

REQUEST FOR INFORMATION

Uranium Reserve Program

Request for Information Regarding Establishment of the Department of Energy Uranium Reserve Program

This is not a request for proposal (RFP) and is not to be construed as a commitment by the Government to issue a solicitation or ultimately award a contract. Market Research is being conducted at this time for the sole purpose of determining interest and capability of potential sources currently available to meet the needs of DOE/NNSA.

I. BACKGROUND / PROGRAM DESCRIPTION

In the United States (U.S.), nuclear energy provides more than 55 percent of our clean energy and supports about half a million American jobs. However, the U.S. nuclear industry and the nuclear fuel supply chain face significant challenges that have left domestic nuclear fuel suppliers in a weakened position on the domestic and global stage. Revitalizing the U.S. nuclear fuel supply infrastructure would support the Administration’s goals described in the American Jobs Plan0F

1, including addressing the climate crisis, creating American jobs, positioning the U.S.

to compete with economic rivals, and supporting national security. It would support environmental justice initiatives, prioritize addressing long-standing and persistent racial injustice by targeting 40 percent of the benefits of climate and clean infrastructure investments to disadvantaged communities, consider rural communities and communities impacted by the market-based transition to clean energy, and include meaningful stakeholder engagement.

In December 2020, Congress passed the Consolidated Appropriations Act, 2021 (Pub. L. 116-

260) for a Uranium Reserve Program. The Department is considering options to acquire natural uranium and convert this uranium into uranium hexafluoride that would be stored at commercial facilities in the United States.

In considering options, the Department will focus on reinvigorating domestic nuclear fuel supply chain capabilities, utilizing existing facilities, and minimizing negative disruption of market mechanisms. The Department expects the acquisition of natural uranium to result in new uranium production at existing domestic sites. The Department does not intend such new production to initiate or expand mining on Tribal lands, expand the Office of Legacy Management’s (LM) Uranium Leasing Program, or expand access to additional uranium deposits located on other Federal lands. Additionally, the Department does not intend to acquire uranium or uranium hexafluoride produced from enricher underfeeding, the re-enrichment of tails, or other sources that do not support the reinvigoration of uranium production and conversion capabilities. Likewise, the Department expects to use existing domestic commercial conversion capabilities and store the uranium hexafluoride at a domestic facility.

1 https://www.whitehouse.gov/briefing-room/statements-releases/2021/03/31/fact-sheet-the-american-jobs-plan/

II. NAICS CODE – 212291 URANIUM-RADIUM-VANADIUM ORE MINING

This U.S. industry comprises establishments primarily engaged in developing the mine site, mining, and/or beneficiating (i.e., preparing) uranium-radium-vanadium ores. The applicable size standard for NAICS code 212291 is 250 employees.

III. GENERAL QUESTIONS

1) How can the establishment of a uranium reserve be structured to:

a. Incentivize the production of uranium from domestic sources and the maintenance of domestic conversion services,

b. Support the Administration’s goals described in the American Jobs Plan, and

c. Promote energy justice, including consideration of community needs and distribution of benefits pursuant to the Justice40 Initiative?1F

2) How do you envision reinvigorating the domestic nuclear fuel supply chain as being responsive to the President’s Justice40 Initiative — a plan to deliver 40% of the overall benefits of climate investments to disadvantaged communities and inform equitable research, development, and deployment within the DOE? Please provide specific actions, the type of benefit (i.e. employment, educational opportunities, etc.) and targeted communities that would be responsive.

3) What siting and environmental justice concerns should the Department consider in the management of any waste generated through establishment of a uranium reserve? Please provide specific concerns, e.g., siting, transportation, exposure, and other human health impacts, including knowledge of the potential impacts of exposure to the hazards associated with uranium production.

4) Are there additional factors or considerations that should be taken into account regarding the establishment of a uranium reserve?

Limitations and/or Restrictions:

The Department is considering the following factors as we develop our approach to acquire and convert natural uranium and to store uranium hexafluoride in commercial facilities:

a. Uranium must be newly produced in the U.S. from deposits at an existing site;

uranium that was produced previously that is currently held in inventory will not be eligible.

b. Uranium newly produced from “alternate feed” materials are eligible to be bid for sale.

c. Provision of uranium must not require (1) initiation or expansion of mining on Tribal lands; (2) expansion of the Office of Legacy Management’s Uranium Leasing Program; or (3) expansion of access to additional uranium deposits located on other

2 https://www.whitehouse.gov/briefing-room/presidential-actions/2021/01/27/executive-order-on-tackling-the-climate-crisis-at-home-and-abroad/

Federal lands.

d. Provision of conversion services must utilize existing domestic commercial facilities.

e. The entity providing uranium, conversion services, or storage must be U.S.-owned or controlled.

f. Uranium and conversion services must not carry any peaceful-use or end-use restrictions.

5) Do the limitations/restrictions support the Department’s objective to incentivize the production of U.S. uranium and conversion services? Why or why not?

6) Should any of these limitations/restrictions be modified or eliminated? Include your justification for any modification or elimination.

7) Please describe any additional limitations/restrictions (other than cost) that you believe the Department should consider and include your justification.

8) Would consideration of these factors support the Department’s objective to incentivize the production of U.S. uranium and conversion services? Why or why not?

9) Should any of these considerations be modified or eliminated? Include your justification for any modification or elimination.

10) Please describe any additional considerations (other than cost) that you believe the Department should consider and include your justification.

11) Please describe any legal, regulatory, and policy issues, including environmental justice concerns, that should be addressed to enable the implementation of the Uranium Reserve Program under the Consolidated Appropriations Act, 2021 (Pub. L. 116-260).

12) To what extent should the Department prioritize support for multiple suppliers?

a. Should the Department impose limitations on the procurement of uranium from a single company?

b. If so, should the limits be percentage-based or based on an absolute quantity maximum?

13) Should the Department seek bids for uranium in small, standard-sized lots, with each proposal indicating the minimum number of lots that would need to be awarded for an entity to sell any uranium to the Department?

a. If so, would lots be best sized at 25,000 pounds U3O8, 50,000 pounds U3O8, or 100,000 pounds U3O8, or another quantity?

14) What contracting terms are necessary to incentivize new uranium production in the U.S.?

Please elaborate on:

a. Necessary annual volumes, contract length (multi-year contracts would be contingent upon Congressional appropriations), and annual volume flexibilities.

b. Minimum order requirements for uranium, conversion services, and storage

c. The extent to which a solicitation incentivizes the production of domestic uranium and conversion services

d. Notice periods, delivery location(s), frequency of contract deliveries (quarterly, annual, etc.) or other commercial terms.

15) For the procurement of uranium, should the Department utilize a standard contract that includes all terms and conditions other than quantity and prices? Please elaborate on important terms and conditions for suppliers that should be included if a standard contract were to be utilized.

IV. CAPABILITY STATEMENT FORMAT

Interested parties that have experience in uranium conversation services and storage are requested to submit a capability statement and the following company information.

a. Number of years’ experience and description of experience in uranium conversion and storage services

b. Business size under NAICS 212291

c. Current Federal Government contracts (if any)

d. Name, address and DUNS number of respondent

e. Point of contact email address and phone number

f. As applicable, address the following in your Capability Statement:

− Domestic production history, including production in recent years − Size of proven uranium reserves and resources − Timeframe in which uranium can be available, and rate of production ramp-up − Timeframe in which conversion services and storage can be available − Human capital capabilities, expertise, and experience, including management experience − Transportation between production, conversion, and storage sites

Capability statements shall be no more than 20 pages in length. Any and all cost associated with the preparation of the capability statement is the sole responsibility of the respondents.

V. SUBMISSION INSTRUCTIONS

DOE invites all interested parties to submit in writing by September 13, 2021, comments and information on matters addressed in this RFI in the capability statement. Any information that may be business proprietary and exempt by law from public discourse should be submitted as described in Section VI. Business Proprietary Information. Interested vendors shall submit capability statements to MICHAEL.THOMEY@NNSA.DOE.GOV by September 13, 2021 at 8

AM EST.

mailto:Michael.Thomey@NNSA.DOE.GOV

FOR FURTHER INFORMATION CONTACT: Requests for further information should be sent to: Michael Thomey at MICHAEL.THOMEY@NNSA.DOE.GOV using “Question on Uranium Reserve RFI” in the subject line.

Note: The Government has posted a parallel RFI to the federal register in order invite public comment on topics related to establishment of the DOE’s Uranium Reserve program. To avoid duplicate submissions, interested parties are encouraged to only respond to the notice that is applicable to their interest.

VI. BUSINESS PROPRIETARY INFORMATION

Pursuant to 10 CFR 1004.11, any person submitting information he or she believes to be business proprietary and exempt by law from public disclosure should submit via email, or postal mail two well-marked copies: One copy of the document marked “Business Proprietary” including all the information believed to be proprietary, and one copy of the document marked “non-Proprietary” with the information believed to be business proprietary deleted. DOE will make its own determination about the business proprietary status of the information and treat it according to its determination. Factors of interest to DOE when evaluating requests to treat submitted information as business proprietary include: (1) a description of the items; (2) whether and why such items are customarily treated as business proprietary within the industry; (3) whether the information is generally known by or available from other sources; (4) whether the information has previously been made available to others without obligation concerning its business proprietary nature; (5) an explanation of the competitive injury to the submitting person which would result from public disclosure; (6) when such information might lose its business proprietary character due to the passage of time; and (7) why disclosure of the information would be contrary to the public interest.

VII. RFI DISCLAIMER

This is not a request for proposal (RFP) and is not to be construed as a commitment by the Government to issue a solicitation or ultimately award a contract. Market Research is being conducted at this time for the sole purpose of determining interest and capability of potential sources currently available to mee the needs of DOE/NNSA.

In accordance with Federal Acquisition Regulation 15.201 (e) RFI’s may be used when the Government does not presently intend to award a contract, but wants to obtain price, delivery or other market information or capabilities for planning purposes. Responses to these notices are not offers and cannot be accepted by the Government to form a binding contract.

mailto:Michael.Thomey@NNSA.DOE.GOV