NRC-HQ-84-15-R-0021.docx

NRC-HQ-84-15-R-0021

SECTION B - Supplies or Services/Prices

B.1 NRCB010 BRIEF PROJECT TITLE AND WORK DESCRIPTION

(a) “Purchase of Severe Accident Simulator”

B.2 COST/PRICE SCHEUDLE

09/30/2015 – 09/29/2018

Total Cost: $______________________ SECTION C - Description/Specifications

C.1 Title of Project

This is a non-personal services contract to procure a system capable of simulating a beyond design-basis event at a nuclear power plant including the simulation of fuel damage utilizing the MELCOR computer code. The task will be to provide a mobile system consisting of state-of-the-art computer hardware and video displays capable of displaying, in real time, plant parameter values and core melting following an accident at a boiling water reactor (BWR) type plant and a pressurized water reactor (PWR) type plant. Also included is the purchase of a second set of hardware so that the system may be used in two classrooms simultaneously.

C.2 Introduction

Instructors at the NRC Technical Training Center rely heavily on computer-based simulators for implementation of the reactor technology curriculum. However, none of the existing simulators are capable of simulating a beyond design-basis event. In the aftermath of the Fukushima accident, the capability to conduct beyond design-basis events training for Severe Accident Management Guidelines (SAMG) and FLEX Strategy is preferred.

The contractor shall provide all personnel, equipment, supplies, facilities, transportation, tools, materials, supervision, and other items and non-personal services necessary to provide a mobile simulator capable of displaying plant parameters on dynamic graphical screens to demonstrate circumstances brought about due to a severe accident.

The contractor shall perform to the standards in this contract/order.

C.3 Background

The Nuclear Regulatory Commission’s (NRC) Technical Training Center (TTC) moved from Bethesda, Maryland to Chattanooga, Tennessee in 1980 for the purpose of adding simulator training to the reactor technology curriculum. The Tennessee Valley Authority (TVA) owned a simulation facility that contained a simulator for three of the four nuclear power plant technologies currently in operation in the United States and was willing to lease time on their simulators to the NRC for the purpose of providing simulator training to NRC staff.

Over time the NRC procured simulators for each of the four technologies. Most recently the NRC added two workstation-based simulators similar to those found in the newest generation of nuclear plants which enable training in the Westinghouse AP-1000 technology.

In the post-Fukushima nuclear training environment it is important to use simulation to train inspectors in SAMG and FLEX Strategy. Therefore the NRC desires to procure a severe accident simulator capable of accurately representing beyond design-basis event scenarios.

C.4 Objective

The contractor shall provide the necessary management, supervision, qualified staff, administrative and technical equipment to accomplish the tasks outlined in the statement of work.

[Insert the appropriate contract type for the acquisition, in coordination with the cognizant contracting officer or contract specialist].

C.5 Scope of Work

The contractor shall provide all resources necessary to provide the deliverables described in this Statement of Work (SOW). The contractor shall provide all hardware and software necessary to allow simulation of beyond design-basis events and to display results on high definition monitor(s) in real time.

C.6 Work Requirements

The following are summary statements which provide an overview of the requirements of this project. Detailed descriptions of individual task necessary to fulfil these requirements are delineated in section C.7.1, and section C.7.2.

1. Provide two (2) state-of-the-art computer systems with all necessary accessories including touch screen high definition (HD) monitor(s) mounted on movable carts capable of executing the simulation software in real time.

2. The contractor shall supply simulation executive and models based on the MELCOR engineering code to display plant parameters and components graphically during beyond design-basis events for both BWR and PWR plants. Each respective model shall be installed on both of the two carts provided in item number one above.

3. The contractor shall provide all software and a license for use for all software tools used to develop all system software along with a warranty.

4. The contractor shall supply an instructor station on each simulator that is compatible with the new computer system and executive system to allow instructors to control the simulator.

5. The contractor shall provide a maximum of one (1) week of training for a maximum of eight (8) maintenance personnel.

6. The contractor is expected to perform the work provided in this contract at its own facilities and then deliver the final product to the TTC. NRC reserves the right to travel to the vendor site to view and/or participate in factory acceptance testing.

7. The contractor shall approach this project as a turn-key project, meaning that the NRC simulator engineers are not expected to provide assistance. The NRC simulator engineers will be available to answer questions as necessary but will not be available for software coding or graphic display design and implementation.

8. The contractor shall identify a Project Manager to serve as the point of contact for the NRC Contracting Officer’s Representative (COR).

9. This contract is not authorized to process Safeguards or Classified Information.Define the work requirements in terms of tasks to be performed by the contractor during performance, including the deliverables/results to be achieved and milestone delivery dates. Compliance requirements (i.e., Federal statutes, regulations) should be included with the task descriptions and deliverables.

C.7.1 Project Tasks

Task 7.1.1 – Provide Computer System and Mobile Hardware The contractor shall provide two (2) mobile carts, four (4) touch screen HD displays and two (2) computer systems based on Intel or Intel-compatible processors. The operating system for each computer shall be Microsoft Windows based. One (1) computer system with accessories and two (2) HD displays shall be mounted on each cart.

The contractor shall clearly identify any additions or modifications to the standard operating system that may be required and shall provide full source code for any such additions or modifications.

The specific outcomes of this are the following:

1. Provide two (2) self-contained mobile simulators to allow a visual demonstration of plant parameters and changes in core geometry before, during and a substantial time after a beyond design-basis event occurs for:

· a pressurized water reactor plant; and

· a BWR/4 Mark 1 boiling water reactor plant.

It is not a requirement but would be preferable to use MELCOR inputs decks from the Catawba nuclear plant for the PWR model and the Shoreham nuclear plant for the BWR model if they are available.

Either model shall be capable of running on either set of hardware.

[Describe the specific tasks the contractor must perform. Provide direction on any specific methodologies that must be used.]

Task 7.1.2 – Provide Simulator Executive and Models

The executive system software provides the software framework which controls the execution of the simulation models, performs signal I/O with the control bench boards, provides for creating and using initial condition snapshots, and performs other functions. The database used in the new executive system should be relational with records being accessed via SQL queries.

The development system software provides the software framework for developing, loading, and testing simulator modules and typically consists of language compilers, variable database(s), a mechanism for loading software modules, and other functions. The software development system shall ensure that consistency is maintained between the simulator variable database and the models. Consistency checks shall ensure that software modules that utilize changed variables are required to be recompiled prior to loading into a simulator software load.

The contractor shall provide software models based on the MELCOR severe accident analysis engineering code which are capable of accurately simulating plant parameters and physical core changes for conditions experienced during beyond design-basis events for both a PWR and BWR type plant.

Task 7.1.3 – Provide Software Tools

The contractor shall supply a copy of the software tools and source code used to create the executive, instructor station and simulation models originally.

Task 7.1.4 – Provide Instructor Station The contractor shall provide an instructor station with each simulator. The instructor station shall be capable of customary simulator functions such as:

· resetting the simulator to an initial condition;

· providing a list at the instructor station during simulator reset that indicates switches and controls that are out of position for the initial condition;

· generating a snapshot of existing simulator conditions, thereby creating a new initial condition;

· creating automatic, periodic snapshots of simulator conditions to which the simulator may be reset (i.e., backtrack initial conditions);

· inserting and deleting malfunctions as selected by the instructor;

· generating trend line plots for display at the instructor station;

· monitoring simulation variables in real time.

The contractor shall separate the instructor station software from the executive system software and provide a single, integrated human-machine interface (HMI) for controlling the simulator.

The instructor station shall include the following features, as well as those described above as typical for an instructor station:

· a scriptable “expert” mode that allows the simulation to be controlled by means of a pre-prepared script or text file;

· a mechanism to monitor simulator variable values in tabular form, and to monitor simulator variables in trend line form;

· a mechanism for collecting real-time simulator data that shall, as a minimum, be capable of being exported to files in a format readable by Microsoft Excel; and

· a mechanism for allowing the addition of features by appropriately trained simulator engineers. The contractor may implement this requirement through configuration files or through the use of an alterable database.

Task 7.1.5 – Training

The contractor shall provide up to one (1) week of software maintenance training at the TTC. The period of time needed to cover the specified topics shall be identified by the contractor. The training shall be provided for no less than eight (8) members of the TTC simulator support staff. The training shall be conducted by contractor personnel with a minimum of 5 years of hardware and software maintenance experience.

The training shall cover the methods used to perform such tasks as:

· performing routine preventive maintenance on the supplied computer systems and associated hardware;

· creating software backups and restoring the simulation software from the backups;

· troubleshooting system hardware problems;

· modifying simulator models;

· changing model execution sequence;

· adding and deleting simulation variables;

· determining which software modules make use of a given variable;

· compiling and loading simulator models;

· executing simulator models without being connected to the control bench boards;

· adding or modifying instructor station features, including adding of additional process and instrumentation diagram displays;

· collecting simulator data; and

The contractor must provide eight (8) printed copies of any presentation materials developed for the training and eight (8) printed copies of any reference materials used to conduct the training shall be provided to the NRC. In addition, the presentation and reference materials shall also be provided in electronic format (Microsoft Office or PDF files).

Task 7.1.6 – Provide Software Licenses and Warranty

The contractor shall be solely responsible for acquiring the appropriate proprietary or copyright licenses from the original software providers for NRC’s use. Further, any software enhancements or modifications and/or new models developed by the contractor under this contract shall be provided to the NRC for perpetual use without restriction.

The contractor shall provide a license to utilize all contractor-provided simulator software on any appropriately configured computer system that the NRC may separately acquire at the NRC’s Technical Training Center. Such utilization shall be confined to training or human factors purposes and is limited to software developed, converted, or recompiled by the contractor. (A site license for commercial, off-the-shelf software is not required). The license shall allow the NRC to modify contractor-provided software for any purpose that the NRC may have. The NRC shall not be required to disclose to the contractor any modifications made to contractor-provided software.

The contractor shall provide NRC with full source code for all software delivered under this contract, except for software development tools such as compilers that are the products of third parties and are readily obtainable by the NRC commercially. This requirement includes but is not limited to source code for the executive system, instructor station, and software development tools developed by the contractor. This source code will be maintained and controlled at the Technical Training Center. Any source code that is not provided to the NRC shall be maintained in escrow under an arrangement that is approved by the NRC.

The NRC will execute appropriate proprietary information agreements that the contractor may require of non-governmental customers and agrees not to violate contractor’s intellectual property rights.

The contractor shall warrant all software and hardware provided under this contract to be free from defect for a minimum period of one year following final installation of all systems and acceptance by the NRC.

C.7.2 Project Tasks

Task 7.2.1 – Provide Software Maintenance and Offsite Archival Storage

The contractor shall provide offsite software maintenance and offsite archiving of the simulator software configuration. The software maintenance services provided shall include routine updates to the instructor station, development system, models, modelling tools, and other software that are developed by the contractor. The software maintenance services to cover on-call consultation with the NRC simulator engineers to resolve discrepancies or perform desired software modifications.

This is exclusive of contractor’s warranty obligations.

The contractor shall provide full source code for all software delivered. [Describe the specific tasks the contractor must perform. Provide direction on any specific methodologies that must be used.]

C.7.3 Contractor Skill Requirements [Include any specific skill requirements needed by contractor personnel to successfully complete the work.]

Specialized experience shall include expertise in such areas as simulation modeling, simulator executive software, computer graphics development, and database administration.

The Key personnel should have the follow qualifications:

Project Manager – Must have at least ten (10) years of experience in simulator projects and must have previous experience as project manager in a simulator re-host project specifically.

Engineer Manager – Must have a minimum of ten (10) years of experience in simulation modeling with a minimum of five (5) years in nuclear plant simulation modeling.

Computer Engineer Manager – Must have a minimum of five (5) years of experience as operating system analyst for computer simulation projects and must have an in depth knowledge of current state-of-the-art computer hardware.

Hardware Engineer – Must have a minimum of five (7) years of experience in working with simulator input/output hardware and must have an in depth knowledge of current state-of-the-art hardware equipment available.

C.7.4 Results/Deliverables

1. CLIN 0001 – The contractor shall provide two (2) sets of hardware consisting of:

a state-of-the-art computer system based on Intel or Intel-compatible processors including all necessary accessories such as keyboard, mouse and speakers;

two (2) high definition displays with a minimum size of 37 inches measured diagonally;

a mobile cart.

2. CLIN 0002 – The contractor shall provide the simulator executive system and development system software, including source code and documentation for all software developed by the Contractor, and vendor documentation for all software developed or provided by a third party.

3. CLIN 0003 – The contractor shall provide a license for all software tools used to develop the system.

4. CLIN 0004 – The contractor shall provide instructor station software and hardware to control simulator operation, including complete source code for all software and simulator operating manuals and documentation

5. CLIN 0005 – The contractor shall provide up to one (1) week of software and computer hardware maintenance training to be delivered at the Technical Training Center.

6. CLIN 0006 – The contractor shall provide site licenses for all software developed by the Contractor, allowing use of software procured under this contract on any computer system that NRC may separately acquire. Source code for all software developed by the Contractor or its agents, to be maintained at the Technical Training Center.

7. CLIN 0007 –The contractor shall provide software maintenance and offsite archival storage.

C.7.4.1 Deliverables by Task

Provide Computer System and Mobile Hardware

Training

Provide software and computer system maintenance training.

Provide Software Maintenance and Offsite Archival Storage

Provide software maintenance and offsite archival storage.

[List all contract/order deliverables.]

C.8 Remedies for Non-Performance

Acceptance of deliverables will be based on comparison of results received to requirements stated above. Failure to provide a required deliverable will result in withholding of payment or a portion of the payment for the deliverable involved.

[Define what unacceptable performance is for each deliverable. Insert applicable FAR clauses.]

For products or services that are rejected, the contractor shall follow Federal Acquisition Requirement (FAR) 52.212-4, "Contract Terms and Conditions-Commercial Items" or FAR 52.246-4, "Inspection of Services-Fixed Price" for a contractor's failure to perform satisfactory services or failure to correct non-conforming services. (Include appropriate FAR clauses that correspond to the type of procurement.)

[List and describe any specific reporting requirements. Specify the nature of the report, required report content and format, due date, location for submission, and Government official receiving the report.]

C.9 Access to Government Property and Facilities

The contractor is permitted limited access to the Government's facilities, as specified below:

Technical Training Center 5746 Marlin Road Chattanooga, Tennessee 37411

It is not anticipated that the contractor will require unescorted building access during the performance of this project. Therefore, while onsite, contractor personnel and any subcontractor personnel will be escorted by NRC employees or other authorized TTC staff members.

[Insert facility name/description and location, if applicable.]

C.10 Place of Performance

The work to be performed under this contract/order will be primarily performed at the contractor’s offices/production facility.

C.11 Hours of Operation

When performing work at the NRC site the contractor is responsible for conducting business, between the hours of 8:00 am and 5:00 pm Monday through Friday except Federal holidays or when the Government facility is closed due to local or national emergencies, administrative closings, or similar Government-directed facility closings.

[Insert the name, title, and position of the key personnel, i.e., Civil Engineer, etc.]

[Sample Position] Contract Manager:

· [Insert the name, title, and position of the contract/task order manager and alternate.]

· The contractor shall provide a contract or task order manager who shall be responsible for the performance of the work. The name of this person and an alternate who shall act for the contractor when the manager is absent shall be designated in writing to the CO. The contract or task order manager or alternate shall have full authority to act for the contractor on all contract/order matters relating to daily operation of this contract/order. The contract/task order manager or alternate shall be available between [Insert the hours, i.e., 8:00 a.m. to 4:30p.m.], Monday thru Friday except Federal holidays or when the Government facility is closed for administrative reasons.

· Qualifications of the contract/task order manager and alternate are listed below: [Insert the qualifications for contract/task order manager and alternate, i.e., 10 or more years of management experience; master’s degree in engineering; 15 or more years working in nuclear field/industry; etc.]

SECTION D - Packaging and Marking

D.1 NRCD020 BRANDING

The Contractor is required to use the statement below in any publications, presentations, articles, products, or materials funded under this contract/order, to the extent practical, in order to provide NRC with recognition for its involvement in and contribution to the project. If the work performed is funded entirely with NRC funds, then the contractor must acknowledge that information in its documentation/presentation.

Work Supported by the U.S. Nuclear Regulatory Commission (NRC), Office of the Chief Human Capital Officer, under Contract/order number TBD.

D.2 NRCD010 PACKAGING AND MARKING

(a) The Contractor shall package material for shipment to the NRC in such a manner that will ensure acceptance by common carrier and safe delivery at destination. Containers and closures shall comply with the Surface Transportation Board, Uniform Freight Classification Rules, or regulations of other carriers as applicable to the mode of transportation.

(b) On the front of the package, the Contractor shall clearly identify the contract number under which the product is being provided.

SECTION E - Inspection and Acceptance

E.1 NRCE010 INSPECTION AND ACCEPTANCE BY THE NRC (SEP 2013)

Inspection and acceptance of the deliverable items to be furnished hereunder shall be made by the NRC Contracting Officer’s Representative (COR) at the destination, accordance with FAR 52.247-34 - F.o.b. Destination.

Contract Deliverables:

1. See C 7.4 and C.7.4.1

SECTION F - Deliveries or Performance

F.1 NRCF030C PERIOD OF PERFORMANCE ALTERNATE III

This contract shall commence on 09/30/2015 and will expire on 09/29/2018.

The term of this contract may be extended at the option of the Government for an additional 6 months.

Base Period: 09/30/2015 – 09/29/2018

F.2 NRCF010 PLACE OF DELIVERY-REPORTS

The items to be furnished hereunder shall be delivered, with all charges paid by the Contractor, to:

a. Name: TBD (1 Electronic Copy)

b. Contracting Officer’s Representative (COR)

c. U.S. Nuclear Regulatory Commission

d. Address:

11555 Rockville Pike, Rockville MD 20852

e. Name: Daniel App (1 Electronic copy)

f. Contracting Officer (CO)

g. U.S. Nuclear Regulatory Commission

h. Address:

11555 Rockville Pike, Rockville MD 20852

SECTION G - Contract Administration Data

G.1 NRCG030 ELECTRONIC PAYMENT (SEP 2014)

The Debt Collection Improvement Act of 1996 requires that all payments except IRS tax refunds be made by Electronic Funds Transfer. Payment shall be made in accordance with FAR 52.232-33, entitled “Payment by Electronic Funds-Central Contractor Registration”.

To receive payment, the contractor shall prepare invoices in accordance with NRC’s Billing Instructions. Claims shall be submitted on the payee’s letterhead, invoice, or on the Government’s Standard Form 1034, “Public Voucher for Purchases and Services Other than Personal,” and Standard Form 1035, “Public Voucher for Purchases Other than Personal – Continuation Sheet.” The preferred method of submitting invoices is electronically to: NRCPayments@nrc.gov.

G.2 NRC REGISTRATION IN FEDCONNECT® (JULY 2014)

The Nuclear Regulatory Commission (NRC) uses Compusearch Software Systems’ secure and auditable two-way web portal, FedConnect®, to communicate with vendors and contractors. FedConnect® provides bi-directional communication between the vendor/contractor and the NRC throughout pre-award, award, and post-award acquisition phases. Therefore, in order to do business with the NRC, vendors and contractors must register to use FedConnect® at https://www.fedconnect.net/FedConnect. The individual registering in FedConnect® must have authority to bind the vendor/contractor. There is no charge for using FedConnect®. Assistance with FedConnect® is provided by Compusearch Software Systems, not the NRC. FedConnect® contact and assistance information is provided on the FedConnect® web site at https://www.fedconnect.net/FedConnect.

SECTION H - Special Contract Requirements

H.1 2052.209-70 CURRENT/FORMER AGENCY EMPLOYEE INVOLVEMENT. (OCT 1999)

(a) The following representation is required by the NRC Acquisition Regulation 2009.105-70(b). It is not NRC policy to encourage offerors and contractors to propose current/former agency employees to perform work under NRC contracts and as set forth in the above cited provision, the use of such employees may, under certain conditions, adversely affect NRC's consideration of non-competitive proposals and task orders.

(b) There [ ] are [ ] are no current/former NRC employees (including special Government employees performing services as experts, advisors, consultants, or members of advisory committees) who have been or will be involved, directly or indirectly, in developing the offer, or in negotiating on behalf of the offeror, or in managing, administering, or performing any contract, consultant agreement, or subcontract resulting from this offer. For each individual so identified, the Technical and Management proposal must contain, as a separate attachment, the name of the individual, the individual's title while employed by the NRC, the date individual left NRC, and a brief description of the individual's role under this proposal.

H.2 2052.209-72 CONTRACTOR ORGANIZATIONAL CONFLICTS OF INTEREST. (JAN 1993)

(a) Purpose. The primary purpose of this clause is to aid in ensuring that the contractor:

(1) Is not placed in a conflicting role because of current or planned interests (financial, contractual, organizational, or otherwise) which relate to the work under this contract; and

(2) Does not obtain an unfair competitive advantage over other parties by virtue of its performance of this contract.

(b) Scope. The restrictions described apply to performance or participation by the contractor, as defined in 48 CFR 2009.570-2 in the activities covered by this clause.

(c) Work for others.

(1) Notwithstanding any other provision of this contract, during the term of this contract, the contractor agrees to forego entering into consulting or other contractual arrangements with any firm or organization the result of which may give rise to a conflict of interest with respect to the work being performed under this contract. The contractor shall ensure that all employees under this contract abide by the provision of this clause. If the contractor has reason to believe, with respect to itself or any employee, that any proposed consultant or other contractual arrangement with any firm or organization may involve a potential conflict of interest, the contractor shall obtain the written approval of the contracting officer before the execution of such contractual arrangement.

(2) The contractor may not represent, assist, or otherwise support an NRC licensee or applicant undergoing an NRC audit, inspection, or review where the activities that are the subject of the audit, inspection, or review are the same as or substantially similar to the services within the scope of this contract (or task order as appropriate) except where the NRC licensee or applicant requires the contractor's support to explain or defend the contractor's prior work for the utility or other entity which NRC questions.

(3) When the contractor performs work for the NRC under this contract at any NRC licensee or applicant site, the contractor shall neither solicit nor perform work in the same or similar technical area for that licensee or applicant organization for a period commencing with the award of the task order or beginning of work on the site (if not a task order contract) and ending one year after completion of all work under the associated task order, or last time at the site (if not a task order contract).

(4) When the contractor performs work for the NRC under this contract at any NRC licensee or applicant site,

(i) The contractor may not solicit work at that site for that licensee or applicant during the period of performance of the task order or the contract, as appropriate.

(ii) The contractor may not perform work at that site for that licensee or applicant during the period of performance of the task order or the contract, as appropriate, and for one year thereafter.

(iii) Notwithstanding the foregoing, the contracting officer may authorize the contractor to solicit or perform this type of work (except work in the same or similar technical area) if the contracting officer determines that the situation will not pose a potential for technical bias or unfair competitive advantage.

(d) Disclosure after award.

(1) The contractor warrants that to the best of its knowledge and belief, and except as otherwise set forth in this contract, that it does not have any organizational conflicts of interest as defined in 48 CFR 2009.570-2.

(2) The contractor agrees that if, after award, it discovers organizational conflicts of interest with respect to this contract, it shall make an immediate and full disclosure in writing to the contracting officer. This statement must include a description of the action which the contractor has taken or proposes to take to avoid or mitigate such conflicts. The NRC may, however, terminate the contract if termination is in the best interest of the Government.

(3) It is recognized that the scope of work of a task-order-type contract necessarily encompasses a broad spectrum of activities. Consequently, if this is a task-order-type contract, the contractor agrees that it will disclose all proposed new work involving NRC licensees or applicants which comes within the scope of work of the underlying contract. Further, if this contract involves work at a licensee or applicant site, the contractor agrees to exercise diligence to discover and disclose any new work at that licensee or applicant site. This disclosure must be made before the submission of a bid or proposal to the utility or other regulated entity and must be received by the NRC at least 15 days before the proposed award date in any event, unless a written justification demonstrating urgency and due diligence to discover and disclose is provided by the contractor and approved by the contracting officer. The disclosure must include the statement of work, the dollar value of the proposed contract, and any other documents that are needed to fully describe the proposed work for the regulated utility or other regulated entity. NRC may deny approval of the disclosed work only when the NRC has issued a task order which includes the technical area and, if site-specific, the site, or has plans to issue a task order which includes the technical area and, if site-specific, the site, or when the work violates paragraphs (c)(2), (c)(3) or (c)(4) of this section.

(e) Access to and use of information.

(1) If, in the performance of this contract, the contractor obtains access to information, such as NRC plans, policies, reports, studies, financial plans, internal data protected by the Privacy Act of 1974 (5 U.S.C. Section 552a (1988)), or the Freedom of Information Act (5 U.S.C. Section 552 (1986)), the contractor agrees not to:

(i) Use this information for any private purpose until the information has been released to the public;

(ii) Compete for work for the Commission based on the information for a period of six months after either the completion of this contract or the release of the information to the public, whichever is first;

(iii) Submit an unsolicited proposal to the Government based on the information until one year after the release of the information to the public; or

(iv) Release the information without prior written approval by the contracting officer unless the information has previously been released to the public by the NRC.

(2) In addition, the contractor agrees that, to the extent it receives or is given access to proprietary data, data protected by the Privacy Act of 1974 (5 U.S.C. Section 552a (1988)), or the Freedom of Information Act (5 U.S.C. Section 552 (1986)), or other confidential or privileged technical, business, or financial information under this contract, the contractor shall treat the information in accordance with restrictions placed on use of the information.

(3) Subject to patent and security provisions of this contract, the contractor shall have the right to use technical data it produces under this contract for private purposes provided that all requirements of this contract have been met.

(f) Subcontracts. Except as provided in 48 CFR 2009.570-2, the contractor shall include this clause, including this paragraph, in subcontracts of any tier. The terms contract, contractor, and contracting officer, must be appropriately modified to preserve the Government's rights.

(g) Remedies. For breach of any of the above restrictions, or for intentional nondisclosure or misrepresentation of any relevant interest required to be disclosed concerning this contract or for such erroneous representations that necessarily imply bad faith, the Government may terminate the contract for default, disqualify the contractor from subsequent contractual efforts, and pursue other remedies permitted by law or this contract.

(h) Waiver. A request for waiver under this clause must be directed in writing to the contracting officer in accordance with the procedures outlined in 48 CFR 2009.570-9.

(i) Follow-on effort. The contractor shall be ineligible to participate in NRC contracts, subcontracts, or proposals therefor (solicited or unsolicited) which stem directly from the contractor's performance of work under this contract. Furthermore, unless so directed in writing by the contracting officer, the contractor may not perform any technical consulting or management support services work or evaluation activities under this contract on any of its products or services or the products or services of another firm if the contractor has been substantially involved in the development or marketing of the products or services.

(1) If the contractor under this contract, prepares a complete or essentially complete statement of work or specifications, the contractor is not eligible to perform or participate in the initial contractual effort which is based on the statement of work or specifications. The contractor may not incorporate its products or services in the statement of work or specifications unless so directed in writing by the contracting officer, in which case the restrictions in this paragraph do not apply.

(2) Nothing in this paragraph precludes the contractor from offering or selling its standard commercial items to the Government.

H.3 2009.570 NRC ORGANIZATIONAL CONFLICTS OF INTEREST.

2009.570-1 SCOPE OF POLICY.

(a) It is the policy of NRC to avoid, eliminate, or neutralize contractor organizational conflicts of interest. The NRC achieves this objective by requiring all prospective contractors to submit information describing relationships, if any, with organizations or persons (including those regulated by the NRC) which may give rise to actual or potential conflicts of interest in the event of contract award.

(b) Contractor conflict of interest determinations cannot be made automatically or routinely. The application of sound judgment on virtually a case-by-case basis is necessary if the policy is to be applied to satisfy the overall public interest. It is not possible to prescribe in advance a specific method or set of criteria which would serve to identify and resolve all of the contractor conflict of interest situations that might arise. However, examples are provided in these regulations to guide application of this policy guidance. The ultimate test is as follows: Might the contractor, if awarded the contract, be placed in a position where its judgment may be biased, or where it may have an unfair competitive advantage?

(c) The conflict of interest rule contained in this subpart applies to contractors and offerors only. Individuals or firms who have other relationships with the NRC (e.g., parties to a licensing proceeding) are not covered by this regulation. This rule does not apply to the acquisition of consulting services through the personnel appointment process, NRC agreements with other Government agencies, international organizations, or state, local, or foreign Governments. Separate procedures for avoiding conflicts of interest will be employed in these agreements, as appropriate.

2009.570-2 DEFINITIONS.

Affiliates means business concerns which are affiliates of each other when either directly or indirectly one concern or individual controls or has the power to control another, or when a third party controls or has the power to control both.

Contract means any contractual agreement or other arrangement with the NRC except as provided in 2009.570-1(c).

Contractor means any person, firm, unincorporated association, joint venture, co-sponsor, partnership, corporation, affiliates thereof, or their successors in interest, including their chief executives, directors, key personnel (identified in the contract), proposed consultants or subcontractors, which are a party to a contract with the NRC.

Evaluation activities means any effort involving the appraisal of a technology, process, product, or policy.

Offeror or prospective contractor means any person, firm, unincorporated association, joint venture, co-sponsor, partnership, corporation, or their affiliates or successors in interest, including their chief executives, directors, key personnel, proposed consultants, or subcontractors, submitting a bid or proposal, solicited or unsolicited, to the NRC to obtain a contract.

Organizational conflicts of interest means that a relationship exists whereby a contractor or prospective contractor has present or planned interests related to the work to be performed under an NRC contract which:

(1) May diminish its capacity to give impartial, technically sound, objective assistance and advice, or may otherwise result in a biased work product; or

(2) May result in its being given an unfair competitive advantage.

Potential conflict of interest means that a factual situation exists that suggests that an actual conflict of interest may arise from award of a proposed contract. The term potential conflict of interest is used to signify those situations that

(1) Merit investigation before contract award to ascertain whether award would give rise to an actual conflict; or

(2) Must be reported to the contracting officer for investigation if they arise during contract performance.

Research means any scientific or technical work involving theoretical analysis, exploration, or experimentation.

Subcontractor means any subcontractor of any tier who performs work under a contract with the NRC except subcontracts for supplies and subcontracts in amounts not exceeding $10,000.

Technical consulting and management support services means internal assistance to a component of the NRC in the formulation or administration of its programs, projects, or policies which normally require that the contractor be given access to proprietary information or to information that has not been made available to the public. These services typically include assistance in the preparation of program plans, preliminary designs, specifications, or statements of work.

2009.570-3 CRITERIA FOR RECOGNIZING CONTRACTOR ORGANIZATIONAL CONFLICTS OF INTEREST.

(a) General.

(1) Two questions will be asked in determining whether actual or potential organizational conflicts of interest exist:

(i) Are there conflicting roles which might bias an offeror's or contractor's judgment in relation to its work for the NRC?

(ii) May the offeror or contractor be given an unfair competitive advantage based on the performance of the contract?

(2) NRC's ultimate determination that organizational conflicts of interest exist will be made in light of common sense and good business judgment based upon the relevant facts. While it is difficult to identify and to prescribe in advance a specific method for avoiding all of the various situations or relationships that might involve potential organizational conflicts of interest, NRC personnel will pay particular attention to proposed contractual requirements that call for the rendering of advice, consultation or evaluation activities, or similar activities that directly lay the groundwork for the NRC's decisions on regulatory activities, future procurements, and research programs. Any work performed at an applicant or licensee site will also be closely scrutinized by the NRC staff.

(b) Situations or relationships. The following situations or relationships may give rise to organizational conflicts of interest:

(1) The offeror or contractor shall disclose information that may give rise to organizational conflicts of interest under the following circumstances. The information may include the scope of work or specification for the requirement being performed, the period of performance, and the name and telephone number for a point of contact at the organization knowledgeable about the commercial contract.

(i) Where the offeror or contractor provides advice and recommendations to the NRC in the same technical area where it is also providing consulting assistance to any organization regulated by the NRC.

(ii) Where the offeror or contractor provides advice to the NRC on the same or similar matter on which it is also providing assistance to any organization regulated by the NRC.

(iii) Where the offeror or contractor evaluates its own products or services, or has been substantially involved in the development or marketing of the products or services of another entity.

(iv) Where the award of a contract would result in placing the offeror or contractor in a conflicting role in which its judgment may be biased in relation to its work for the NRC, or would result in an unfair competitive advantage for the offeror or contractor.

(v) Where the offeror or contractor solicits or performs work at an applicant or licensee site while performing work in the same technical area for the NRC at the same site.

(2) The contracting officer may request specific information from an offeror or contractor or may require special contract clauses such as provided in 2009.570-5(b) in the following circumstances:

(i) Where the offeror or contractor prepares specifications that are to be used in competitive procurements of products or services covered by the specifications.

(ii) Where the offeror or contractor prepares plans for specific approaches or methodologies that are to be incorporated into competitive procurements using the approaches or methodologies.

(iii) Where the offeror or contractor is granted access to information not available to the public concerning NRC plans, policies, or programs that could form the basis for a later procurement action.

(iv) Where the offeror or contractor is granted access to proprietary information of its competitors.

(v) Where the award of a contract might result in placing the offeror or contractor in a conflicting role in which its judgment may be biased in relation to its work for the NRC or might result in an unfair competitive advantage for the offeror or contractor.

(c) Policy application guidance. The following examples are illustrative only and are not intended to identify and resolve all contractor organizational conflict of interest situations.

(1)(i) Example. The ABC Corp., in response to a Request For Proposal (RFP), proposes to undertake certain analyses of a reactor component as called for in the RFP. The ABC Corp. is one of several companies considered to be technically well qualified. In response to the inquiry in the RFP, the ABC Corp. advises that it is currently performing similar analyses for the reactor manufacturer.

(ii) Guidance. An NRC contract for that particular work normally would not be awarded to the ABC Corp. because the company would be placed in a position in which its judgment could be biased in relationship to its work for the NRC. Because there are other well-qualified companies available, there would be no reason for considering a waiver of the policy.

(2)(i) Example. The ABC Corp., in response to an RFP, proposes to perform certain analyses of a reactor component that is unique to one type of advanced reactor. As is the case with other technically qualified companies responding to the RFP, the ABC Corp. is performing various projects for several different utility clients. None of the ABC Corp. projects have any relationship to the work called for in the RFP. Based on the NRC evaluation, the ABC Corp. is considered to be the best qualified company to perform the work outlined in the RFP.

(ii) Guidance. An NRC contract normally could be awarded to the ABC Corp. because no conflict of interest exists which could motivate bias with respect to the work. An appropriate clause would be included in the contract to preclude the ABC Corp. from subsequently contracting for work with the private sector that could create a conflict during the performance of the NRC contract. For example, ABC Corp. would be precluded from the performance of similar work for the company developing the advanced reactor mentioned in the example.

(3)(i) Example. The ABC Corp., in response to a competitive RFP, submits a proposal to assist the NRC in revising NRC's guidance documents on the respiratory protection requirements of 10 CFR Part 20. ABC Corp. is the only firm determined to be technically acceptable. ABC Corp. has performed substantial work for regulated utilities in the past and is expected to continue similar efforts in the future. The work has and will cover the writing, implementation, and administration of compliance respiratory protection programs for nuclear power plants.

(ii) Guidance. This situation would place the firm in a role where its judgment could be biased in relationship to its work for the NRC. Because the nature of the required work is vitally important in terms of the NRC's responsibilities and no reasonable alternative exists, a waiver of the policy, in accordance with 2009.570-9 may be warranted. Any waiver must be fully documented in accordance with the waiver provisions of this policy with particular attention to the establishment of protective mechanisms to guard against bias.

(4)(i) Example. The ABC Corp. submits a proposal for a new system to evaluate a specific reactor component's performance for the purpose of developing standards that are important to the NRC program. The ABC Corp. has advised the NRC that it intends to sell the new system to industry once its practicability has been demonstrated. Other companies in this business are using older systems for evaluation of the specific reactor component.

(ii) Guidance. A contract could be awarded to the ABC Corp. if the contract stipulates that no information produced under the contract will be used in the contractor's private activities unless this information has been reported to the NRC. Data on how the reactor component performs, which is reported to the NRC by contractors, will normally be disseminated by the NRC to others to preclude an unfair competitive advantage. When the NRC furnishes information about the reactor component to the contractor for the performance of contracted work, the information may not be used in the contractor’s private activities unless the information is generally available to others. Further, the contract will stipulate that the contractor will inform the NRC contracting officer of all situations in which the information, developed about the performance of the reactor component under the contract, is proposed to be used.

(5)…