Sec J Appendix A - Statement of Work 08.24.20.pdf

Request for Proposal No. 89233220RNA000002

SECTION J

APPENDIX A

STATEMENT OF WORK

DOE/NNSA Management and Operations

Pantex Plant and Y-12 National Security Complex Sites

Table of Contents

SECTION J - APPENDIX A

CHAPTER I. OBJECTIVES, SCOPE, AND REQUIREMENTS

1.0 Objective

2.0 Background

2.1 The NNSA Mission

2.2 The NNSA Organization

2.3 Location of Performance

3.0 Scope

3.1 Mission

3.2 Scope and Financial Management

3.3 Enterprise Success

4.0 Administrative and Technical Requirements

4.1 Integrated Safety Management (ISM), Integrated Safeguards and Security Management (ISSM), Environmental Management System (EMS), and Quality Assurance Systems (QAS)

4.2 Work Authorization (WA) System

4.3 Information Technology (IT)

4.4 Governance

4.5 Contractor Human Resources

4.6 Environmental Permits and Applications

4.7 Defense Nuclear Facilities Safety Board and Other Govt Agencies Support and Liaison

4.8 Interfaces with Other Site Users

4.9 Privacy Act System of Records

4.10 Cost Reduction

CHAPTER II. WORK SCOPE STRUCTURE

1.0 Programs

1.1 Defense Programs

1.2 Other NNSA Work

1.3 Strategic Partnership Programs (SPP) /Other Reimbursable Work

2.0 Functional Support

2.1 General Support

2.2 Mission Support

2.3 Site Specific Support

CHAPTER III. HUMAN RESOURCES

1.0 Definitions

2.0 Workforce Transition

2.1 Staffing Plan

2.2 Pay & Benefits

2.3 Incumbent Employees Right of First Refusal

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2.4 Personnel Appendix

3.0 Compensation

3.1 Total Compensation System

3.2 Cash Compensation

3.3 Reports and Information: Compensation

4.0 Benefits

4.1 Establishment of New Benefit Plans and/or Changes to Existing Benefit P lans

4.2 Reports and Information: Benefits

4.3 Workers’ Compensation

4.4 Pension Plans

4.5 Pension Management Plan (PMP)

5.0 Labor Relations

6.0 Workforce Planning

6.1 Workforce Planning - General

6.2 Reductions in Contractor Employment – Workforce Restructuring

CHAPTER IV. INTERFACES FOR URANIUM PROCESSING FACILITY

1.0 Introduction

2.0 Roles of the Design Authority and Design Agent

3.0 Turnover and Operation of UPF

CHAPTER V. CURRENT PROJECT STATUS…………………………………………………41

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CHAPTER I. OBJECTIVES, SCOPE, AND REQUIREMENTS

1.0 Objective

The objective of this Contract is to obtain nuclear processing and production operations services along with other required services to support National Nuclear Security Administration (NNSA) and broader national security requirements assigned to the Pantex Plant and Y-12 National Security Complex sites. This objective specifically includes obtaining the nuclear operations services required to meet the stockpile requirements derived from the nuclear weapons stockpile plan updated and released by the President of the United States annually. The Contractor shall be fully responsible for the processing, manufacture, fabrication, and disposition for high-hazard enriched uranium, special nuclear material (SNM), other special materials, high-explosives and nuclear weapon assembly/disassembly functions to support NNSA Stockpile Stewardship and

Management Program activities directed by the Office of Defense Programs (DP). The Contractor shall be responsible for the management and operation of two major sites within the Nuclear Security Enterprise (NSE).

Furthermore, the Contractor shall directly support the NNSA Offices of Naval Reactors;

Emergency Operations; Safety, Infrastructure and Operations; Defense Nuclear Security;

Counterterrorism and Counterproliferation; and Defense Nuclear Nonproliferation in addition to other Department of Energy (DOE) offices. Beyond DOE/NNSA, the Contractor shall provide unique services to ongoing missions for other Government agencies or privately owned organizations within legal and other formal established agreements on a non-interference basis with the DOE/NNSA workload.

This statement of work includes four Contract Line Item Numbers (CLINs). CLIN 0001 covers contract transition. CLIN 0002 covers the management and operation of the Pantex Plant (Pantex) and the Y-12 National Security Complex (Y-12). CLIN 0003 covers Strategic Partnership Projects (SPP). CLIN 0004 and its Sub-CLINS cover capital construction projects at both Y-12 and

Pantex.

In addition to achieving Presidential goals outlined in the February 2018 Nuclear Posture Review, this Contract will fully support the DOE and NNSA Strategic Plans and will support

NNSA’s management of a fully integrated, interdependent, and effective Nuclear Security Enterprise (NSE), consisting of all eight NNSA sites, by achieving the following four specific objectives:

(i) Improving performance of these two sites in the overall completion of national security missions for nuclear production operations;

(ii) Managing operations at two geographically-dispersed centers of excellence for: nuclear weapon assembly/disassembly/disposition; high-explosive production operations; enriched uranium; SNM; and other special materialsunder a single Contract;

(iii) Reducing the cost of performing work; and

(iv) Supporting actions for an integrated DOE/NNSA enterprise.

This Contract does not affect the physical location or mission of nuclear production centers of excellence designations at the respective sites.

2.0 Background

2.1 The NNSA Mission

The NNSA, established by Congress per the NNSA Act (Title XXXII of the National Defense Authorization Act for Fiscal Year 2000, Public Law 106-65) as a semiautonomous element within DOE, is responsible for the management and security of the nation’s nuclear weapons, non-proliferation, and naval nuclear propulsion programs. It also responds to nuclear and radiological emergencies in the United States and abroad, and NNSA federal agents provide safe and secure transportation of nuclear weapons, components, and special nuclear materials.

2.2 The NNSA Organization

NNSA consists of multiple mission offices - the Offices of Defense Programs;

Defense Nuclear Nonproliferation; Naval Reactors; Emergency Operations; Safety, Infrastructure and Operations; Defense Nuclear Security; and Counterterrorism and Counterproliferation - and various mission support offices such as the Offices of Policy; Acquisition and Project Management; Information Management; and Management and Budget. These offices work closely with NNSA Field Offices to execute and oversee the NNSA mission across the Nuclear Security Enterprise (NSE) which includes the various site and headquarters locations.

NNSA relies on Management and Operating (M&O) contractors to manage day-to-day site operations and to adhere to its policies when operating its laboratories, production plants, and other facilities in the NSE. Together, the M&O contractors implement NNSA’s wide-ranging mission goals including the Stockpile Stewardship Program managed by Defense Programs which comprises operations associated with surveillance, assessment, maintenance, refurbishment, modernization, manufacture and dismantlement of the nuclear weapons stockpile as well as research, development, and certification efforts.

2.3 Location of Performance

The two sites under this Contract are:

2.3.1 Y-12 National Security Complex (Y-12): Y-12 is a Government-owned site located in Oak Ridge, Tennessee, on approximately 3,100 acres within the 34,000 acre Oak Ridge Reservation. The NNSA facilities at Y-12 consist of over 370 buildings with approximately 6,070,000 gross square feet (gsf).

Another 1,790,000 gsf are facilities that are the responsibility of the Office of Science, Office of Nuclear Energy, or the Office of Environmental Management. The Y-12 facilities are primarily located in a single valley of approximately 800 acres.

2.3.2 Pantex Plant (PX): PX is a Government-owned site located near Amarillo, Texas, on approximately 9,100 acres at Pantex Plant proper and 1,100 acres http://nnsa.energy.gov/about/documents/NNSA_Act_030109_updated.pdf of detached property called Pantex Lake, approximately 2.5 miles northeast of the main plant site. In addition, PX leases 5,800 acres south of the plant as a security buffer and owns approximately 1,526 acres of land east of FM2373 that provides an additional security buffer and is being used primarily for agriculture and location of the Pantex Wind Farm. The total acreage under Federal control is approximately 17,460 acres. The facilities on the site consist of 602 buildings comprising approximately 3,444,000 gsf.

3.0 Scope

This Contract is comprehensive with an objective to perform all necessary operational, coordination, and management functions at Y-12 and PX required to support NNSA and broader national security missions assigned to these sites. This includes but is not limited to all ongoing missions and functions, as well as those that may be assigned during the term of the Contract. It further includes all infrastructure management and maintenance; information technology; human resource management including critical skills recruitment and retention;

environmental management; health, safety and security systems; armed protective forces; and purchasing and other administrative systems.

In the execution of this Contract, and particularly program integration, the Contractor shall meet rigorous quality and reliability standards essential for the U.S. nuclear deterrent; maintain sufficient production capability and capacity necessary to produce at rates defined in planning documents; and implement flexible production management and execution processes to accommodate a dynamic national security environment. The Contractor shall balance risk management and cost reduction to provide increased value to the Government. This applies both internally to this Contract and contributing to the overall cost efficiency of the NSE.

The Contractor shall be fully responsible and accountable for the safe and secure accomplishment of all work, whether performed by its own personnel or team members, including subcontractors. The Contractor shall be responsible for planning and coordinating production schedules; integrating, managing and executing the programs; supporting and executing large and small projects; working collaboratively with national laboratories to develop essential technologies and capabilities; and completing operations and other activities as described in this Statement of Work and Work Authorizations issued by the Contracting Officer.

3.1 Mission

The Contractor shall safely, securely, and with high quality standards complete all mission responsibilities and improve overall performance in the completion of national security missions for nuclear production operations and other designated national security missions, at these two sites. NNSA has a Work Breakdown Structure (WBS) that is discussed further in Section J, Appendix TBD. At a minimum, the Contractor shall:

(i) Sustain the necessary workforce and exercise essential capabilities and capacities for: nuclear weapon assembly/disassembly/disposition, high-explosive production and fabrication, enriched uranium, depleted uranium, special materials, lithium, and SNM;

(ii) Maintain authorization basis for high-hazard operations;

(iii) Maintain up to Category I security for specific facilities and assets;

(iv) Operate high-hazard chemical processing facilities and systems within approved authorization basis;

(v) Assure the availability of core capabilities and minimum necessary capacity, regardless of stockpile size;

(vi) Implement and oversee the nuclear explosive and weapons surety program to include nuclear weapon/nuclear explosive safety, security, and use control;

(vii) Sustain and modernize site infrastructure, facilities, processes, and equipment;

(viii) Manage numerous small and large projects, including capital construction and major items of equipment, from conception through design and construction execution and management to operational readiness;

(ix) Interface with and support other contractors performing work at any of the NSE sites;

(x) Balance available resources to meet mission requirements and infrastructure sustainment while maintaining safe, secure, high quality, environmentally compliant and resilient operations; and

(xi) Effectively partner with other contractors within the NSE to support the master production schedule by managing all production activities and be responsible for the execution of uranium, lithium, special materials, SNM, high explosives, nuclear weapons assembly/ disassembly/disposition, dismantlement, and surveillance functions in support of the Stockpile Stewardship Program. In performing this responsibility, issues between the NSE contractors will be brought to NNSA management for resolution.

3.2 Scope and Financial Management

The Contractor shall support the DOE/NNSA Planning, Programming, Budgeting and Evaluation (PPBE) process. In supporting PPBE, the Contractor shall provide financial data for Government systems, such as:

Standard Accounting and Reporting System (STARS) o STARS information is provided under the Institutional Cost Reporting Categories iMANAGE

Enterprise Portfolio Analysis Tool (EPAT) o The EPAT information shall be collected in accordance with the Work Breakdown Structure (WBS) (see Section J, Appendix TBD)

Facilities Information Management System (FIMS)

NNSA Integrated Data Warehouse (IDW)

The Contractor shall maintain financial cost reporting systems to provide detailed cost reports for cost, scope, and schedule for direct and indirect costs for all work performed under this Contract. The cost reports shall include labor costs, leave/hours not worked, staff augmentation, fringe, pension, legacy, materials, services-subcontractors, direct service centers, other expenses, capital, labor category, and full-time equivalent (FTE) resource usage for all direct and indirect costs and utilize cost benefit analyses to determine the appropriate level of support functions and risks. The Contractor shall provide NNSA transparency into those financial cost reporting systems and shall provide routine reports to allow NNSA visibility into program and cost management supporting reports to external sources (see Section J, Appendix TBD). The Contractor’s financial cost reporting systems shall support the DOE STARS, iMANAGE, EPAT and support systems, such as FIMS, as well as other Government systems as they are developed and implemented.

The NNSA will provide the initial cost information, FTE data and scope framework on the effective date of the Contract. The Contractor shall develop a baseline for all Contractor direct programs and indirect support costs in accordance with DOE institutional cost reporting categories as found in Section J, Appendix

TBD, and utilize the WBS reporting structure for further program granularity, as applicable and as it continues to develop within NNSA. The baseline shall include cost, scope of work, and schedule with a documented change control process. The baseline shall be fully consistent with planning documents, budget requests, and progress reporting such as earned value management systems. The baseline shall be submitted for Contracting Officer review on an annual basis.

The Contractor shall have in place tools to: 1) manage mission and indirect changes in scope, cost, and schedule; 2) compare actual costs of work performed (ACWP) to budgeted costs of work performed (BCWP); 3) accurately forecast estimated costs to complete (ETC) and estimated total costs at completion (EAC);

4) compare actual amount of work performed to the amount of planned, and 5) document deviations from the baselines described above in this paragraph and, on a timely basis, notify the Contracting Officer of such changes. Changes shall be minimal and limited to changes outside the Contractor’s control. The Contractor shall not make retroactive changes to records pertaining to work performed that will change previously-reported costs, except for correction of errors and routine accounting adjustments and not make retroactive changes for funding fluctuations or revisions in EAC.

3.3 Enterprise Success

The Contractor shall participate with NNSA and other NNSA M&O Contractors in evaluating, planning, developing and implementing strategic initiative activities that optimize mission and business operations across the NSE. The goal of these initiatives is to increase the overall efficiency and cost effectiveness of the NSE from a business and mission perspective, to include:

Reduced operational site costs and enterprise-wide impacts, Improved work practices and operational processes at sites, Better pricing, better products, more timely delivery, Reduced administrative costs and lead times for both the Contractor and the

DOE/NNSA,

Optimization to increase efficiencies at sites and reducing operational redundancies across the NSE; and

Increased awards to small business entities.

NNSA expects these and other initiatives to result in operational improvements, increased resiliency, and efficiency gains within the NSE.

The Contractor shall team with NNSA and NSE Contractors in identifying potential cross-NSE benefits to be derived from sharing lessons learned, benchmarking, and best practices to benefit the NSE in the areas of mission workload and enterprise functional support.

The Contractor shall suggest and NNSA shall establish performance incentives with performance measures and targets for efforts that result in performance improvement and benefit for the Government.

4.0 Administrative and Technical Requirements

4.1 Integrated Safety Management (ISM), Integrated Safeguards and Security

Management (ISSM), Environmental Management System (EMS), and Quality

Assurance Systems (QAS) The Contractor shall ensure that ISM, ISSM, EMS, and QAS are integrated into its operations and that it’s Contractor Assurance System (CAS) reflects Contractor integrated performance related to these systems.

4.2 Work Authorization (WA) System

Specific work requirements under this Contract will be established annually and updated as needed by the Contracting Officer in accordance with the applicable DOE Order, NNSA Supplemental Directive 412.1, and the Contract’s Section I Clause entitled “DEAR 970.5211-1, Work Authorization.”

4.3 Information Technology (IT)

The NNSA seeks to deliver a modern, secure computing environment that improves communication and aligns the current and future IT service delivery model. The enterprise-wide IT modernizations initiative will provide innovative ways to consume, leverage, share, and safeguard information assets. It is the goal of the overall NNSA cyber posture to enhance secure and accessible IT solutions within and across NNSA sites. Additionally, NNSA will identify and evaluate emerging technologies that can be used to strengthen NNSA‘s cyber defenses. NNSA seeks to consolidate IT infrastructure/services and eliminate redundant systems, to increase efficiency through mobility and cloud computing, and to improve business processes to better integrate across both sites. To accomplish these goals, the Contractor must evaluate and develop a single, integrated “to-be” vision that utilizes the best available technologies and management practices from both Government and commercial sources to improve and achieve performance excellence, including fiscal efficiency. With respect to production, these efforts shall include, but are not limited to, the implementation of multi-site, integrated manufacturing based information systems that support weapons production, SNM accountability, production scheduling and flow, surveillance, weapon retirement, process knowledge archiving, and preservation of production and certification records.

Desktop and back-office computing capabilities should be compatible with those used by NNSA entities across the broader nuclear security enterprise, and should include seamless functionality between the Y-12 and PX sites.

If the Contractor plans to offer an IT deliverable that is not Internet Protocol version 6 (IPv6) and Homeland Security Presidential Directive (HSPD)-12 compatible, the

Contractor agrees to (1) obtain the Contracting Officer’s approval before starting work;

and (2) provide a migration path and firm commitment to upgrade to IPv6 and HSPD-12 compatibility for all application and product features.

The Contractor, prior to using any Contractor-owned software and systems where reimbursement is expected, shall request approval by the Contracting Officer. The Contractor agrees to and does hereby grant to the Government an irrevocable, nonexclusive, paid-up license by or for the Government, in any Contractor-owned software and systems brought in and used. Said license shall be limited to the continued nuclear production work by successor contractors.

4.4 Governance

Governance is the system of management and controls exercised in the stewardship of the organization. The governance system shall be consistent with NNSA governance documents (such as DOE Order 226.1B and NNSA Supplemental Directive 226.1C, or successor documents, included in Section J, Appendix B, List of Applicable Directives).

Contractors must self-govern and deliver high-quality mission results in a safe and secure manner. The Contractor shall implement governance through a collaborative partnership with NNSA to form the self-governance framework by which the mission is accomplished in an effective and efficient manner. The governance framework invokes trust and confidence between parties, defines expectations and authorities and verifies performance by utilizing objectives, requirements, assessments, metrics and rewards.

The Contractor will focus on NNSA transformation activities that maximize the ability to complete the mission in a way that ensures effective and efficient stewardship of the taxpayers’ money. The Contractor shall streamline operations and reduce costs to maximize mission accomplishment through a common understanding of expectations and performance accountability, supported by a strong Contractor Assurance System

(CAS). The Contractor shall have a CAS as a subordinate and supporting feature of Governance as described in 4.4.1 below.

4.4.1 Contractor Assurance System: The Contractor shall implement a Contractor designed and utilized system to manage performance consistent with Contract requirements. The CAS shall be a primary tool used by Contractor management to measure and improve performance, ensure that mission objectives and Contract requirements are met; ensure that workers, the public and the environment are protected; and ensure that operations, facilities, and business systems are efficiently and effectively operated and maintained. An effective CAS integrates Contractor management, supports corporate parent governance and facilitates Government oversight systems as described in DOE Order 226.1B. NNSA oversight shall not be relied upon by the

Contractor as the primary feedback in assessing its performance. The Contractor is fully accountable for performing its own assessment of these areas.

4.4.2 Standards and Directives Reform: The Contractor shall submit a plan within 180 days after start of Base Term that identifies standards (e.g., ISO 9001, 14001, 18001, or other international or industry standards) to be utilized to replace other DOE requirements and provide the ability for the Contractor to operate with industry best practices. The plan shall describe how quickly the Contractor will achieve ISO certifications or other recommended standards but commit to completion no later than by the end of the second year of the Base Term. In addition, the Contractor, as part of its governance, shall continuously evaluate and examine DOE directives, orders, and requirements to propose needed exemptions or modifications to allow the Contractor to operate in the most effective and efficient manner and to assist in delivering cost savings to the Government.

4.4.3 Parent Organization(s): The Contractor, through its Parent Organizations, shall develop, at a date established by the Contracting Officer with input from the Contractor, a multi-year Parent Strategy and Oversight Plan (Strategic Plan) that details (1) its planned efforts and expected accomplishments by year, to continuously improve its management and performance, and (2) the planned efforts and contributions of its Parent Organizations. The Contracting

Officer may require an updated Plan or a Plan supplement to address specific issues at any time during performance of the contract. The Contractor shall also provide an Annual Oversight Plan (Annual Plan) from its Governing Board detailing the activities expected to be conducted during the year (if applicable) and the estimated costs of those activities, which shall be submitted 60 days prior to each fiscal year for Contracting Officer approval.

The Annual Plan shall also identify the Board’s annual activities to: (1) monitor the Contractor’s performance of Statement of Work activities including CAS performance and (2) to assist the Contractor in meeting

NNSA’s mission and operational requirements. Elements of the Strategic or Annual Plan may be incorporated into the Contractor’s Performance Evaluation and Measurement Plan. The utilization of Parent Organization experts via the Board’s activities, which are defined herein as employees of

Parent Organization(s), is encouraged for the purpose of achieving improvement in management and performance to resolve deficiencies identified through the Board’s oversight or unusual issues encountered in site operations. The Board shall conduct periodic briefings throughout the annual rating period to NNSA management relating their oversight activities against the Plan and effects on production plant performance.

The Contractor is encouraged to identify opportunities for the use of parent corporate systems and corporate home and branch office personnel for site operations for the purposes of monitoring plant performance, assisting the plant in meeting its mission and operational requirements, streamlining the Contractor’s administrative and business systems, improving performance, and adapting private sector expertise to plant issues.

The term “systems” means any discrete process, procedure, program, document or instrument where cost of use under this Contract can be identified and quantified to the parent corporation.

The Contractor, prior to using any parent corporate systems or home and branch office personnel where reimbursement is expected, shall submit a plan for review and approval by the Contracting Officer. The plan shall include a cost estimate and supporting information such as approved indirect rate agreements. In reviewing the plan, the Contracting Officer will consider the extent to which each separate element of the plan is more efficient and represents an overall cost savings to the Government versus existing site systems, assists the parent corporation or the Contractor in monitoring plant performance and in meeting mission and operational requirements or brings value-added expertise to plant issues. The Contractor agrees to and does hereby grant to the Government an irrevocable, nonexclusive, paid-up license by or for the Government, in any Contractor- owned software and systems brought in and used. Said license shall be limited to the continued nuclear production work by successor contractors.

4.4.4 Performance Evaluation and Measurement Plan: The Contractor shall participate in the formulation of Performance Evaluation and Management

Plans (PEMP) that covers a defined period of time. The PEMP shall include performance goals, objectives, and key outcomes, and may include other measures of performance as developed by NNSA as a part of its Corporate Performance Evaluation Process (CPEP).

4.4.5 Performance Metrics: The Contractor shall propose a list of performance metrics that provide Contractor and NNSA management an overall assessment of the “health of the operation” quickly and accurately. Once established, the metrics shall be part of the CAS and be provided with transparency to aid in the identification and understanding of significant performance issues.

4.5 Contractor Human Resources

The Contractor shall have the flexibility to restructure the workforce and make changes to employee benefits throughout the term of the Contract, as may be permitted by this Contract and applicable law, to maximize efficiencies. The Contractor shall be responsible for identification and maintenance of critical skills and for the employment of all professional, technical, skilled, and other personnel engaged and to be engaged by the

Contractor in the work hereunder, and for the training of personnel, including apprentice programs. Persons employed by the Contractor or its subcontractors or consultants shall not be deemed employees of the Government. The Contractor shall follow the Human Resources (HR) requirements pertaining to workforce transition and management in accordance with Section J, Appendix A, Statement of Work , Chapter III, Human Resources.

4.6 Environmental Permits and Applications

In recognition of the Contractor's responsibility to operate in compliance with all applicable environmental requirements, the Contractor is responsible for signing environmental permits and applications as "operator or co-operator" at the sites.

(i) If bonds, insurance, or administrative fees are required as a condition for such permits, such costs shall be allowable. In the event that such costs are determined by NNSA to be excessive or unreasonable, NNSA shall provide the regulatory agency with an acceptable form of financial responsibility.

(ii) The Contractor shall accept, in its own name, service of notices of violations or alleged violations (NOVs/NOAVs) issued by Federal or State regulators to the Contractor resulting from the Contractor’s performance of work under this Contract, without regard to liability. The allowability of the costs associated with fines and penalties shall be subject to clauses of this Contract. The Contractor shall notify the Contracting Officer promptly when it receives service from the regulators of NOVs/NOAVs and fines and penalties. Nothing stated above shall affect the Contractor’s right to challenge or contest the applicability or validity of such NOVs/NOAVs and fines and penalties.

(iii) In the event of termination or expiration of this Contract, NNSA will require the new Contractor to accept transfer of all environmental permits executed by the

Contractor.

(iv) When providing NNSA with documents that are to be signed or co-signed by NNSA, the Contractor will accompany such document with a certification statement, signed by the appropriate Contractor corporate officer, attesting to NNSA that the document has been prepared in accordance with all applicable requirements and the information is, to the best of its knowledge and belief, true, accurate, and complete.

4.7 Defense Nuclear Facilities Safety Board and Other Government Agencies Support and Liaison The Contractor shall support NNSA in interfacing with various Government agencies such as the Defense Nuclear Facilities Safety Board (DNFSB), Department of Defense and state regulatory agencies.

The Contractor shall conduct activities in accordance with the applicable DOE directive and guidance on interface with the DNFSB. The Contractor shall be accountable for ensuring that subcontractors at any tier adhere to these requirements.

4.8 Interfaces with Other Site Users

Within the two sites, there are multiple contractors responsible for a variety of broad-based programs. Within 90 calendar days after the start of the Transition Period, the Contractor shall submit, for Contracting Officer approval, an Interface Management Plan

(IMP) for the affected sites to identify and manage all site interfaces/services between DOE, NNSA, DOE/NNSA contractors, and tenant entities engaged in onsite activities.

The IMP will also incorporate contractors and subcontractors to these entities, as directed by the Contracting Officer. The IMP should identify any costs related to other site users. Services may be provided by the Contractor on a cost recoverable basis as approved by the Contracting Officer. The IMP shall also address security in accordance with Section J, Appendix A, Statement of Work , Chapter II, 1.2.5, Defense Nuclear Security. The Contractor IMP(s) will become part of the Contract as Section J, Appendix

K, Interface Management Plan. The Contractor shall be responsible for developing and implementing a plan for interfacing and integrating activities with other site contractors and tenant entities consistent with DOE technical direction. For the sites, services that require interface agreements shall be provided in accordance with existing or newly developed memoranda of understanding or other appropriate agreements. The Contractor will provide input to the NNSA Production Office regarding effective support toward common site security and operational objectives. The Government will not consider such input if one contractor has any potential Organizational Conflict of Interest with the other contractor.

4.9 Privacy Act System of Records

The Contractor shall design, develop, and maintain a system of records on individuals to accomplish an agency function in accordance with the Contract’s Section I Clause entitled “FAR 52.224-2, Privacy Act.” The applicable systems of records are available on the Federal Register. A list of applicable records will be finalized after contract award.

4.10 Cost Reduction

The Contractor shall prepare and submit Cost Reduction Proposals (CRPs) in accordance with the Contract’s Section I Clause entitled “DEAR 970.5215-4, Cost Reduction” where opportunities for reducing the cost of operations are identified. The Contracting Officer may accept or reject the CRPs.

CHAPTER II. WORK SCOPE STRUCTURE

1.0 Programs

The Contactor shall support the following program activities:

1.1 Defense Programs

1.1.1 Directed Stockpile Work (DSW): The DSW program is responsible for maintaining and enhancing the safety, security, and reliability of the U.S. nuclear weapons stockpile without using underground testing. To meet this goal, DSW assures that nuclear warheads and bombs are available for the Department of Defense (DoD) in accordance with the stockpile system levels documented in the annual President’s Nuclear Weapons Stockpile Plan (NWSP) and direction per

Presidential Policy Directives. The NWSP directs the number and type of weapons that the United States needs to maintain to ensure a credible deterrent.

DSW includes weapons and production support programs. These programs are performed to achieve component manufacture, stockpile evaluation, stockpile assessment, stockpile maintenance, stockpile modernization, stockpile refurbishment, and nuclear weapons assembly/disassembly/disposition as well as research, development, and certification efforts requirements in accordance with DOE/NNSA directive documents and other formal direction.

Within DSW, the types of activities include, but are not limited to, the assembly and disassembly of nuclear weapons and individual components in support of Life Extension Programs, the Stockpile Evaluation Program, and dismantlement goals and objectives. In addition, it includes the disposition of weapon components, maintaining a weapons quality control program, providing production operations supporting multiple systems, providing production information systems, and providing laboratory analytical services. Also, each site performs research, development, testing, hardware, and engineering work for the current and future weapon systems and production missions in support of the national laboratories.

At Pantex, the high hazard manufacture and fabrication of high explosive materials and components, interim storage of SNM and components, and nuclear weapons assembly/disassembly/disposition are key deliverables and; Y-12 provides the Canned Subassemblies. All operations shall meet DOE/NNSA requirements for nuclear facility safety, criticality safety, nuclear explosive safety, and Conduct of Operations. Projected work scope for the NSE within this program includes, but is not limited to:

(i) B61 Life Extension Program (LEP), W88 Alteration (Alt) 370, W80-4 LEP, and W87-1 LEP and W-93 weapon system deliverables;

(ii) All other LEP, Alt, and weapon system deliverables;

(iii) Support planning and development for upcoming and future LEPs and weapons (W80-4, W87-1, W93)

(iv) 800-1200 weapon systems equivalent unit operations per year for assembly/disassembly for: (1) surveillance sample disassembly and rebuild, LEP production and dismantlement; (2) Joint Test Assemblies

(JTA) and Test Beds; and (3) Limited Life Component Exchanges (LLCEs). These operations are on the, B61, W62, W70, W71, W76, W78, W80, B83, W84, W87, and W88 systems; (The W76 LEP (Assembly/ Disassembly) is the standard equivalent unit and is equal to 1.0 equivalent unit. All other weapons program deliverables are defined as either 0.xx or 1.yy equivalent units based on the number of hours of production time and whether it is greater or less than that standard.)

(v) Meet annual Defense Program deliverables at Y-12 and PX inclusive of assemblies, subassemblies, piece parts, phases of a dismantlement or surveillance, container refurbishments, shipment and receipt of nuclear weapons from DOD, and shipments from Area 5;

(vi) Maintain, modernize, and exercise production process capabilities such as casting, rolling, forming, machining, and inspection.

Establish or re-establish production capabilities for SNM and/or non- SNM special material components;

(vii) Support of multi-program initiatives including Product Realization Integrated Digital Enterprise and Requirements Modernization and Integration;

(viii) Storage and disposition of excess legacy components from weapons activities;

(ix) Manage expense projects, such as the Manufacturing Operations

Management at Y-12 and the Operations System Design and Integration at Pantex.

(x) Support on-going construction of the Uranium Processing Facility, transition to and authorization for operations, and transition to full scale production as described in Chapter IV.

(xi) Manage design, construction, and operation of capital projects and

Major Items of Equipment (MIE) such as the High Explosive Synthesis, Formulation and Production Facility, Lithium Processing Facility, and others as may be authorized by NNSA. See Chapter V for a more information on capital construction and MIE projects.

1.1.2 Weapon Technology and Manufacturing Maturation: Technology

Maturation is the focused efforts to address critical capabilities needed to achieve key future program objectives. Technology Maturation activities are technically challenging, multi-function efforts that have definitive milestones and specific work plans. Projected work scope within this program includes, but is not limited to:

(i) Support advanced technology projects in support of the NSE such as lithium technologies, microwave deployment, wet chemistry replacement, lithium oxide replacement, high explosives development;

(ii) Support transition of designated Campaign activities to DSW.

1.1.3 Production Modernization (PM): The NNSA uranium, lithium, and special materials capabilities at the Y-12 National Security Complex are critical to meeting national security requirements for the nuclear stockpile, naval reactors, and nuclear-nonproliferation. Within Production Modernization are the Enriched Uranium Modernization, Depleted Uranium Modernization, Lithium Modernization, and Special Material

Programs. These Programs are responsible for ensuring material production and processing capabilities and capacities are adequate to meet NNSA’s strategy and program of record. Types of activities included to support these Programs include, but are not limited to, major capital acquisitions, MIE, numerous small projects, technology development, operations of process equipment, and disposition of out-of-service equipment. Major initiatives include transition of Building 9212 operations to other facilities; design, construction, and operation of the

Uranium Process Facility (UPF is performed by others as described in Chapter IV) and Lithium Processing Facility; restart of depleted uranium operations, and initiation of new capabilities and processes. Major ongoing activities include nuclear material recycle and recovery;

installation of new technologies or capabilities like electro-refining, calcining, and direct chip melt; maturing of new essential technologies like binary direct casting and special material processing; and identifying and maturing technologies that may improve efficiency like cold hearth melting and additive manufacturing.

1.1.4 Infrastructure and Operations: Infrastructure and Operations provides the physical and operational infrastructure required to conduct the scientific, technical, and manufacturing activities of the Stockpile Stewardship Program. The I&O mission is to ensure that the sites comprising the NSE are implementing the technologies and methods necessary to make construction, operation, energy efficiency and maintenance of production facilities safe, secure, reliable and cost effective and that the right facilities and infrastructure are in place to manufacture and certify the 21st century nuclear weapons stockpile.

The key areas within I&O include, but are not limited to, construction, construction support and contractor integration, management of containers (onsite and offsite), operations of facilities, management and storage of materials (plutonium, highly-enriched uranium (HEU), Lithium, SNM and other materials), Projected work scope within this program includes, but is not limited to:

(i) Maintain annual mission critical facility availability;

(ii) Maintain mission critical facilities and mission dependent, not critical facilities;

(iii) Project Management

A. The Contractor shall perform design and construction activities for required projects under $20M (Expense and General Plant Projects).

New projects over $20M, including Expense and Line Item, may be included if determined by the NNSA to be in the Government’s best interest.

B. The Contractor shall perform initial project development (for all projects regardless of dollar value), project management, design, and construction management activities in accordance with required DOE Orders.

C. The Contractor shall recognize existing Construction Labor

Agreements and shall require subs engaged in construction on the construction project to recognize the Construction Labor

Agreement.

D. The Contractor shall maintain project baselines, develop Documented Safety Analysis, define quality requirements, ensure National

Environmental Policy Act (NEPA) compliance, provide quarterly reports to the NNSA for assigned projects, support external reviews, and meet other requirements as directed by the Contracting Officer.

E. Line Item Capital Projects covered by this Contract include, but are not limited to:

Lithium Processing Facility (LFP) High Explosive Science and Engineering Facility (Pantex)

High Explosive Synthesis, Formulation and Production Facility (Pantex)

West End Protected Area Reduction Project (WEPAR)

Fire Station

Emergency Operations Center (EOC)

The status of Line Item Projects is described further in Chapter V, below

F. Major Items of Equipment (MIE) projects covered by this Contract include, but are not limited to:

Electro Refining

Calciner

The status of MIE Projects is described further in Chapter V, below

G. Interface support provided by Contractor under this contract for

Capital Construction Projects include, but are not limited to:

Uranium Processing Facility (UPF), see Chapter IV of this SOW

Consolidated Nuclear Security, LLC, NNSA contractor

(iv) Manage and disposition waste generated at the sites;

(v) Operate enriched uranium recycle and recovery systems at Y-12 to include chemical processing, metal working, purification, accountability, storage, disposition, breaking, casting, high precision machining, oxide conversion, metal production, and canning;

(vi) Operate lithium recycle and recovery systems at Y-12;

(vii) Reduce the backlog of Highly Enriched Uranium (HEU) material at Y-12 in order to fully execute Material Disposition Plan and manage newly generated low-equity material by processing to a form suitable for long-term storage or discard of material which is below the Economic Discharge Limit;

(viii) Safe and secure storage, management, and disposition of nuclear and non- nuclear materials (weapon assemblies, pit staging, war reserve storage, enriched uranium, Li6, heavy water, plutonium, and satisfy NNSA and other DOE customer material requirements;

(ix) Support DOE enterprise-wide nuclear materials management and storage initiatives including, supporting the development and update of material management plans, supporting the DOE Nuclear Materials Management Team, and performing special studies related to uranium, lithium, heavy water as requested;

(x) Deliver containers according to Shipment Schedules in support of DSW and other missions; and

(xi) Support footprint reduction efforts at the sites.

(xii) Operate the Wind Energy System (Pantex Wind Farm) as part of the

Pantex Renewable Energy Project (PREP).

1.1.5 Secure Transportation: This is the mechanism for the movement of weapons and materials between sites. Key facilities are located in Amarillo, Texas and Oak Ridge, Tennessee. Support under this Contract shall include maintenance of facilities, vehicle maintenance and support, and other activities.

1.2 Other NNSA Work

1.2.1 Infrastructure and Environment: These programs include Site Stewardship, Long-term Environmental Stewardship, NNSA recapitalization programs, Nuclear Materials Management Team, and energy savings initiatives required by the DOE. Projected work scope for the NSE within this program includes, but is not limited to:

(i) Overseeing roofing projects under Enterprise-wide Roofing Asset Management Program;

(ii) Overseeing chilling and heating projects under the Enterprise-wide Chilling and Heating Management Program;

(iii) Completing recapitalization and deferred maintenance projects;

(iv) Completing facility demolition projects; and

(v) Completing High Pressure Fire Loop at Pantex (CD-4).

1.2.2 Nuclear Counterterrorism Incident Response and Other Nuclear Emergency Response Programs: The Nuclear Counterterrorism Incident Response (NCTIR) program ensures that capabilities are in place to respond to any DOE/NNSA facility emergency, nuclear, or radiological incident within the United States or abroad, and to provide operational planning and training to counter both domestic and international nuclear terrorism and assure that DOE can carry out its mission-essential functions. This includes DOE’s radiological assistance program, NNSA’s worldwide weapons accident response management, and other investigations or advisory groups.

1.2.3 Nuclear Non-Proliferation: Defense Nuclear Nonproliferation programs work closely with a wide range of international partners, key U.S. federal agencies, the U.S. national laboratories, and the private sector to detect, secure, and dispose of dangerous nuclear and radiological material, and related weapons of mass destruction technology and expertise. Projected work scope for the NSE within this program includes, but is not limited to:

(i) Integrate, plan and execute disposition projects for DOE complex-wide inventories of surplus and excess nuclear material;

(ii) Complete 100% of scheduled deliveries of excess enriched uranium to customers;

(iii) Provide effective and rapid response to emergent non-proliferation and international security requirements;

(iv) Partner with DOE/NNSA laboratories to leverage resources and expertise in support of nuclear non-proliferation goals and objectives;

(v) Support of global nonproliferation activities; and

(vi) Meet 100% of scheduled deliveries for the supply of nuclear materials to foreign and domestic research and isotope production reactors and other Y-12 customers.

1.2.4 Naval Propulsion: Naval Reactors programs require production and delivery of feedstock supporting their nuclear fuel program. Projected work scope for the NSE within this program includes, but is not limited to:

(i) Complete 100% of scheduled deliveries of feedstock to NA-30; and

(ii) Complete annual evaluation, maintain, and submit 20-year plan for NA-30 feedstock requirements.

1.2.5 Defense Nuclear Security (DNS): The DNS program protects NNSA interests from theft, diversion, sabotage, espionage, unauthorized access, compromise, and other hostile acts which may cause unacceptable adverse impacts on national security, program continuity, security of employees, and the public. As required by the security assets at each site, the Contractor shall provide a highly trained, competent, qualified, and certified Protective Force (PF) to protect nuclear explosives, SNM, classified matter, and other NNSA property. The actual PF staffing is determined by the posts and patrols and their required hours of operation. The Contractor is expected to provide staffing to meet requirements in a cost-effective manner. These responsibilities include planning, integration, management, and execution of all program elements excluding drug and alcohol testing for all site personnel.

PF operations are included in the scope of this Contract.

The Contractor shall interface, as directed by the CO, with other contractors that perform safeguards and security work within the Oak Ridge Reservation. In addition, the scope entails coordination with local law enforcement agencies as well as management and operation of all shared security support services (e.g., Technical Surveillance Countermeasures and pre-event discovery operations) and facilities (inclusive of the Central Training Facility) in Oak Ridge, as well as implementation of the “Graded Security Protection Policy.” The Contractor shall establish a formal training program which ensures appropriate personnel are competently trained, and fully qualified to perform the tasks within their assigned responsibilities under both normal and emergency conditions.