JOFOC.docx

JUSTIFICATION FOR OTHER THAN FULL

AND OPEN COMPETITION

Justification for other than full and open competition

NRC-HQ-13-R-03-0098

MEMORANDUM TO: Adelis M Rodriguez, Contracting Officer (CO) Research, Resources and Grants Branch Division of Contracts (DC) Office of Administration (ADM) U. S. Nuclear Regulatory Commission (U.S.NRC)

FROM: Walter C. Leschek, Contracting Officer Representative (COR) Probabilistic Risk Assessment Branch (PRAB) Division of Risk Analysis (DRA) Office of Nuclear Regulatory Research (RES) U.S. Nuclear Regulatory Commission (U.S.NRC)

SUBJECT: JUSTIFICATION FOR OTHER THAN FULL AND OPEN

COMPETITION

REFERENCE: PROJECT TITLE:

Provide Technical Support to Address Advisory Committee on Reactor Safeguards (ACRS) and Office of Nuclear Reactor Regulation (NRR) Comments on a Report Titled “Simplified Method for Assessing the Risk Associated with Consequential Steam Generator Tube Rupture Events” that was prepared by Information Systems Laboratories (ISL) of Rockville, Maryland Under Contract No. GS23F0060L Order NRC-HQ-11-P-04-0034

“Source Selection Information – see FAR 2.101 and 3.104”

1. Identification of the agency and contracting activity

1. Federal agency and contracting activity.

· “NRC” and the Division of Contracts

1. Sponsoring organization.

· Office of Nuclear Regulatory Research for Office of Nuclear Reactor Regulation (NRR)

c. Contracting Officer’s Representative (COR) Information.

1. Name of COR.

Walter C. Leschek

1. Mailing address.

U.S. Nuclear Regulatory Commission Washington, DC 20555-0001 Mail Stop CSB-4A07

1. E-mail address.

Walter.Leschek@nrc.gov

1. Telephone number.

301-251-7606

1. Nature and/or description of the action being approved.

1. Acquisition purpose and objectives.

Regulatory Use

Document a simplified methodology for a quantitative assessment of the risk associated with consequential steam generator tube rupture during a severe accident after the onset of core damage, and during a Design Basis Accident (DBA) event before the onset of core damage. Estimating the probabilities of large early releases and containment bypass is the main focus for severe accidents. Screening probabilities for both core damage and containment bypass are addressed for DBA events.

Scope

Prepare a simplified Probabilistic Risk Assessment (PRA) method for assessing the risk associated with severe-accident and Design Basis Accident (DBA) events.

Objective

Provide Technical Support to Address Advisory Committee on Reactor Safeguards (ACRS) and Office of Nuclear Reactor Regulation (NRR) Comments on a Report Titled “Simplified Method for Assessing the Risk Associated with Consequential Steam Generator Tube Rupture Events” that was prepared by Information Systems Laboratories (ISL) of Rockville, Maryland Under Contract No. GS23F0060L Order NRC-HQ-11-P-04-0034

1. Project background

The report titled “Simplified Method for Assessing the Risk Associated with Consequential Steam Generator Tube Rupture Events” that was prepared by under Contract No. GS23F0060L, Order NRC-HQ-11-P-04-0034 addressed the NRC’s mission of Protecting People and the Environment by:

· Documenting a simplified methodology for a quantitative assessment of the risk associated with consequential steam generator tube rupture during a severe accident after the onset of core damage, and during a Design Basis Accident (DBA) event before the onset of core damage.

· Estimating the probabilities of large early releases and containment bypass is the main focus for severe accidents.

· Screening probabilities for both core damage and containment bypass are addressed for DBA events

The contractor shall provide all personnel, equipment, supplies, facilities, transportation, tools, materials, supervision, and other items and non-personal services necessary to perform support to address Advisory Committee on Reactor Safeguards (ACRS) and Office of Nuclear Reactor Regulation (NRR) comments on the above cited report as defined in this Performance Work Statement (PWS), except for those items specified as Government-furnished property and services. The contractor shall perform to the standards in this contract.

Mohamad Ali Azarm, Ph.D., was the Principal Investigator who did the innovative technical research that is the basis for the information contained in the above cited report. He did this first as an employee of ISL and then under contract to ISL as the Chief Executive Officer (CEO) of Innovative Engineering and Safety Solutions LLC (IESS) of Gaithersburg, Maryland. As such he is the only individual who is qualified to address ACRS and NRR comments on the above cited report.

Description of the supplies or services required to meet the agency’s needs (including the estimated value).

a. Project title.

Provide Technical Support to Address Advisory Committee on Reactor Safeguards (ACRS) and Office of Nuclear Reactor Regulation (NRR) Comments on a Report Titled “Simplified Method for Assessing the Risk Associated with Consequential Steam Generator Tube Rupture Events” that was prepared Under Contract No. GS23F0060L Order NRC-HQ-11-P-04-0034

b. Project description.

The project shall provide expert technical support services to assist and support U.S.NRC employees in addressing ACRS and NRR Comments on a report titled “Simplified Method for Assessing the Risk Associated with Consequential Steam Generator Tube Rupture Events” that was prepared by ISL of Rockville, Maryland under Contract No. GS23F0060L, Order NRC-HQ-11-P-04-0034.

1. Requirement type.

Research & development (R&D) R&D support services Support services (non-R&D) Supplies/equipment Information technology (IT) Construction Architect-engineer (A-E) services Design-build X Other (specify): Engineering Services

1. Type of action.

New requirement X Follow-on Other (specify): ______________________

1. Proposed contract/order type.

Firm-fixed-price Other fixed-price (specify, e.g., fixed-price award-fee, fixed-price incentive-fee): __________ Cost-plus-fixed-fee Other cost reimbursement (specify, e.g., cost-plus-award-fee, cost-plus-incentive-fee): ___________ X Time and materials Indefinite delivery (specify whether indefinite quantity, definite quantity, or requirements): ___________ Other (specify): ___________ Completion Form Term form

c. Request for Procurement Action (RFPA) number.

RES-13-228

d. Total estimated dollar value and performance/delivery period.

$37,132.00 14 months

1. Identification of the statutory authority permitting other than full and open competition.

X This acquisition is conducted under the authority of 41 United States Code (U.S.C.) 253(c)(1) as set forth in Federal Acquisition Regulation FAR Subpart 13.106-1(b)(1); Only one responsible source and no other supplies or services will satisfy agency requirements.

This acquisition is conducted under the authority of section 4202 of the Clinger-Cohen Act of 1996

This acquisition is conducted under the authority of the Services Acquisition Reform Act (SARA) of 2003 – (41 U.S.C. 428a and P.L. 108-136

1. Demonstration that the proposed contractor(s) unique qualifications or the nature of the acquisition requires use of the authority cited

0. Name and address of the proposed contractor(s).

Innovative Engineering and Safety Solutions, LLC 702 Russell Avenue, Suite 410 Gaithersburg, MD 20877

0. Nature of the acquisition and proposed unique qualifications of the contractor(s).

Mohamad Ali Azarm, Ph.D., was the Principal Investigator who did the innovative technical research that is the basis for the information contained in the above cited report prepared by Information Systems Laboratories (ISL) of Rockville, Maryland, under Contract No. GS23F0060L, Order NRC-HQ-11-P-04-0034. He did this first as an employee of ISL and then under contract to ISL as the Chief Executive Officer (CEO) of Innovative Engineering and Safety Solutions LLC (IESS) of Gaithersburg, Maryland. As such he is the only individual who is qualified to address ACRS and NRR comments on the above cited report.

Dr. Azarm is the only individual uniquely qualified to: (1) Use the Consequential Steam Generator Tube Rupture (C-SGTR calculator software developed at ISL under another contract with the NRC; (2) Use the C-SGTR models developed under the above cited ISL contract; and (3) Use the data analysis done under the above cited ISL contract.

However, acquiring this work from another contractor would entail training and experience costs associated with bringing the contractor’s staff up to the level of technical proficiency needed to do extensive Probabilistic Risk Assessment (PRA) analyses of operating commercial nuclear power plants, and in this case unique experience in applying PRA to analyze Consequential Steam Generator Tube Rupture (C-SGTR) events, that would be needed to satisfactorily complete this work. This training and experience includes Level 1 PRA (Accident Frequency) and Level 2 PRA (Accident Progression and a measure of radioactive contamination known as Source Term). Level 1 PRA involves initiating-event analysis, event-tree construction, fault-tree construction, accident-sequence screening, accident-sequence quantification, grouping of accident sequences, and uncertainty analysis. These Level 1 PRA activities are supported by nuclear power plant familiarization analysis, dependent-failure analysis which involves the interaction of nuclear power plant systems and components, human reliability analysis, and database analysis. Level 2 PRA consists of accident progression and source-term analysis in addition to Level 1 PRA.

Dr. Azarm has accrued approximately 1,600 hours of specialized experience in doing PRA analysis of C-SGTR events, at a cost to the government of approximately $350,000.00. It would be expected that another contractor would require a similar level of effort to acquire this specialized experience. Given that this contract with IESS is expected to take only about 167 hours of effort, selection of a different contractor would incur significant additional costs to the government in order to accrue the necessary expertise (up to 10 times the value of the proposed contract) compared with the use of IESS. Also, the time required to develop this additional expertise would unacceptably delay completion of the project (which is anticipated being completed before the end of calendar year 2013).

1. Description of the efforts made to ensure that offers are solicited from as many potential sources as practicable. Indicate whether a FedBizOpps notice was or will be publicized as required by FAR Subpart 5.2 and, if not, which exception under FAR 5.202 applies.

Competition was conducted under Federal Supply Schedules (FSS) for the previous Contract No. GS23F0060L, Order NRC-HQ-11-P-04-0034. Since this is a follow on to the previous order, competition is not advisable at this time as explained above. A notice of intent to sole source was posted in FedBizOpps on May 7, 2013, and closed on June 23, 2013. Only one response was received, from 2D-2-3D Design & Conversions, LLC. The reponse provided was evaluated and the contracting officer representative determined that 2D-2-3D Design & Conversions, LLC did not demonstrated that they had the capability to perform the work.

1. Determination by the Contracting Officer that the anticipated cost/price to the Government will be fair and reasonable.

The contracting officer will perform the appropriate price analysis before awarding the purchase order. Although the NRC has not awarded a contract or order directly to IESS, they have been subcontractors under several ISL contracts. Copies of IESS invoices have been submitted to the NRC as part of ISL invoices, therefore we have information of historical prices paid to IESS. Loaded rates information for IESS has been included by Information Systems Laboratories (ISL) in the January 2013 Status Report for Contract No. GS23F0060L, Order NRC-HQ-11-P-04-0034. In addition, IESS has proposed for other NRC projects such as solicitation NRC-HQ-13-R-03-0023, for resulting contract NRC-HQ-13-C-03-0039. We also have information regarding the rates proposed under competitive procurements, which will allow us to complete the price analysis. Cost and pricing data is not required because the estimated value of this procurement is less than $700,000.

1. Description of the market research conducted (see FAR Part 10) and the results, or a statement of the reasons market research was not conducted.

Since this is a follow on effort, market research was not conducted. However, market research was done prior to granting Contract No. GS23F0060L, Order NRC-HQ-11-P-04-0034 to Information Systems Laboratories (ISL) in Rockville, Maryland and the results showed that ISL was uniquely qualified t do the work.

1. Any other facts supporting the use of Other Than Full and Open Competition.

None

1. Listing of sources, if any, that expressed, in writing, an interest in the acquisition.

The intent to sole source was posted on May 7, 2013 and closed on June 23, 2013. No responses were received from this posting.

1. Statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the required supplies or services.

Future actions will depend on the final recommendations of the Advisory Committee on Reactor Safeguards (ACRS) and Office of Nuclear Reactor Regulation (NRR) concerning the contents of the report titled “Simplified Method for Assessing the Risk Associated with Consequential Steam Generator Tube Rupture Events” that was prepared by Information Systems Laboratories (ISL) of Rockville, Maryland under Contract No. GS23F0060L, Order NRC-HQ-11-P-04-0034.

Possible future actions are to:

· Do no further work.

· Do follow-up work:

· In-house by the Office of Nuclear Regulatory Research (RES)

· Via an Agreement with a Department of Energy (DOE) National Laboratory.

· Via a commercial contract.

· In this case there will be Full and Open Competition.

By signing below, the technical requirements official noted above certifies that the justification is accurate and complete to the best of his/her knowledge and belief.

Contracting Officer’s Representative (COR) Certification

This is to certify that the justification for the proposed acquisition has been reviewed and that to the best of my knowledge and belief the information and/or data provided to support the rationale and recommendation for approval is accurate and complete.

Contracting Officer

References:

Handbook 11.1, Part 5 http://www.internal.nrc.gov/ADM/DAS/cag/Management_Directives/md11.1.pdf and FAR 6.302 https://www.acquisition.gov/far/current/html/Subpart%206_3.html#wp1086841 image1.png