Sole Source Justification__47QTCB21D0153_31310026F0042_Redacted.pdf

NRC JUSTIFICATION AND APPROVAL

Version Control Date: November 2024

Justification and Approval (J&A) For All Commercial/Non-Commercial Contract Actions U.S. Nuclear Regulatory Commission

The COR must get approval from their respective Contracting Officer to select the appropriate FAR authority and supporting rationale prior to completing this document.

FAR 6.302 Circumstances permitting other than full and open competition.

Justification for Other Than Full and Open Competition (JOFOC)

FAR 16.505 Ordering

Justification for an Exception to Fair Opportunity (JEFO)

FAR 8.405-6 Limiting Sources

Limited Sources Justification (LSJ)

FAR 19.808-1 Sole-Source 8(a) > $25M Contracting with the Small Business Administration (The 8(a) Program)

FAR 13.106-1(b) Sole Source Justification for Acquisitions NOT Exceeding the Simplified Acquisition Procedures (SAP)

FAR 13.5- Simplified Procedures for Certain Commercial Products and Commercial Services for Acquisitions Exceeding the SAP

FAR 19-Sole Source to Socioeconomic Small Businesses regulate the commercial use of nuclear materials within the United States. The NRC provides licensing and regulation of nuclear reactors and industrial research use of nuclear materials, and the possession, use, processing, handling, and disposal of nuclear materials.

The proposed acquisition will enable the Information Security Branch (ISB) within the Office of Nuclear Security and Incident Response (NSIR) to continue supporting the development and maintenance of Information Assurance Systems Support (IASS), including vulnerability lifecycle management processes such as accreditation, remediation, continuous monitoring, and assessments. This continued Contractor support will also provide Information Assurance and Security (IAS) and Information Assurance Operations Services (IAOS) necessary to ensure that NRC’s secure IT systems remain compliant with the Federal Information Security Management Act (FISMA) and applicable Department of Defense (DoD) requirements.

The Contractor shall provide Information Assurance (IA), cyber security solutions, and lifecycle system support in an optimal manner to ensure the confidentiality, integrity, and availability of the NRC standalone classified systems. The Contractor shall provide IA-related analysis, testing, evaluation and assessment, as defined by Department of Defense (DoD), Committee of National Security Systems (CNSS), and National Institute of Standards and Technology (NIST) various policies, directives, and guidance to support IA accreditation. The Contractor shall support NRC in the development of required accreditation documentation and in its approval process. The Information Assurance skills required under this statement of work and scope shall be derived from both DoD 8140.01 and DoD 8570.01M policy or the equivalent follow-on or replacement technical guidance. The Contractor shall be familiar with NSIR classified ecosystem to minimize disruption to current NSIR operations.

5. Supporting Rationale:

The following rationale supports the use of the authority cited in Section 5 of this document. See brand name description1 if applicable.

GSAR 538.7104-3(b) (ii): Only one source is capable of providing the products, services, or solutions required at the level of quality required because the products, services, or solutions are unique or highly specialized.

The current contract, awarded June 17, 2022, has a period of performance that ends on June 16, 2026. Because the IA and accreditation functions are ongoing, mission-critical, and cannot lapse or be reassigned without risk to accreditation schedules and compliance obligations, continued support is required to ensure uninterrupted operations. The rationale necessitating this bridge contract with the incumbent are necessary to ensure continuity of these critical services at the NRC while the NRC executes a competitive 8(a) acquisition due to unanticipated circumstances outside the agency’s control that are listed below.

1. Coordination on Contract Ceiling and Period of Performance In May 2026, the agency explored the possibility of adjusting the existing contract’s ceiling and period of performance in coordination with SBA. After discussions, the requested adjustments could not be implemented, and the agency proceeded with its established competitive acquisition strategy. This outcome required the agency to rely on a competitive procurement timeline.

2. FAR Deviation 19.108-7(d)

1 See FAR 11.104 use of brand name or equal purchase descriptions and FAR 11.105 items peculiar to one manufacturer.

On June 5, 2025, the agency adopted the FAR overhaul deviation prioritizing competition over sole-source awards within the 8(a) program. While the original acquisition strategy for this requirement was an 8(a) sole-source follow-on, the deviation now requires requirements below the $5.5 million threshold to be competitive. This increased the number of acquisition steps and extended the overall procurement timeline.

3. OFPP and SBA Joint Policy Direction Recent OFPP and SBA policy guidance emphasizes expanding competition in the 8(a) Business Development Program.

Aligning the agency’s acquisition approach with these government-wide priorities further supported the decision to conduct a competitive follow-on rather than pursue a sole-source action.

5. Updated SBA Scorecard Methodology Revisions to the SBA Scorecard include the expectation that at least 50 percent of 8(a) awards be made competitively and provide additional recognition for competing requirements previously awarded on a sole-source basis. These updates influenced the agency’s planning and supported transitioning this requirement to a competitive environment.

6. Duplication of Cost and Continuity of Services Only the incumbent contractor—who is already fully embedded in the work and possesses the necessary institutional knowledge—can ensure uninterrupted performance of these critical services during the bridge period while the follow-on requirement is being actively competed. The complexity of the environment, combined with the ongoing operational demands, makes it infeasible for any other source to transition in, assume responsibilities, and achieve full performance within the short timeframe available.

A transition to a new contractor at this time would result in duplication of costs, and pose significant risk to operational continuity, security requirements, and mission support. Therefore, extending the current contract is essential to ensure the NRC has sufficient time to complete the competitive acquisition process and award a new contract for the continued development and maintenance of Information Assurance Systems Support services.

Conclusion Due to the combination of the agency deviation that resulted from the RFO, and federal policy changes, and the nature of required services, the competitive follow-on procurement cannot be awarded before the current contract ends. Awarding this bridge contract to Clark Baty Associates Inc. is in the best interest of the Government and prevents significant risks and unacceptable breaks in service including:

• Avoids a lapse in mission critical IA and accreditation activities.

• Ensures continuation of essential IA and cybersecurity lifecycle services.

• Avoids cost and schedule impacts associated with onboarding a new short-term contractor.

• Maintains compliance with DoD, CNSS, and NIST and agency security protocols.

Continuation of performance by Clark Baty Associates Inc. minimizes risk and preserves continuity of operations until the competitive follow-on award is completed. Clark Baty Associates is the only contractor capable of meeting the agency’s immediate needs without disruption to critical tasks or time-sensitive milestones. Therefore, it is in the Government’s best interest to issue a one-time bridge contract with the incumbent, as transferring the work at this time is not feasible and would jeopardize continuity of essential services.

Cost/Price Analysis (MUST BE COMPLETED):

Prior to award, the Contracting Officer (CO) will conduct a price analysis to determine whether the contractor’s proposed pricing is fair and reasonable. This analysis will include an evaluation of Clark Baty Associates Inc.’s proposed pricing against its GSA Multiple Award Schedule (MAS) price list. The CO will assess whether the proposed labor categories and rates are equal to or lower than the firm’s schedule rates and whether any discounts have been offered. The CO will also have the technical team evaluate the labor mix and level of effort as well. The CO will document the rationale supporting the determination that the final price is fair and reasonable.

7. Market Research (MUST BE COMPLETED):

Market research has been ongoing for the competitive contract, including capability presentations from qualified small businesses. Based on this current market research and the COR’s technical knowledge, it has been determined that no firm could competitively bid and transition onto the contract before the current expiration date without incurring significant risks, such as a break in service.

8. A description of efforts made to ensure that offers are solicited from as many potential sources as is practicable, including whether a notice was or will be publicized as required by subpart 5.2 and, if not, which exception under

5.202 applies.

No solicitation for this specific acquisition has been issued for these services, as only one source is uniquely qualified to provide follow-on services. No other public communication such as a notice on the Government Point of Entry web site (SAM.gov) has been issued about this procurement.

9. A determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable.

The Contracting Officer will perform a price analysis and will only award a contract if the price is deemed to be fair and reasonable. The price will be considered reasonable if the level of effort is aligned with the request for quote, and the quoted hourly labor rates are comparable with historical data and/or publicly available price listing, such as GSA Federal Supply Schedules pricing for the same or similar services.

10. Any other facts to support justification.

FAR 5.202 Exceptions: RFO 5.101(b) Exemptions

** See FAR 6.305 Availability of Justification for posting requirements after contract award. **

APPROVAL SIGNATURES

Technical/Program Office Personnel Certification

Evidence that any supporting data that is the responsibility of technical or requirements personnel (e.g., verifying the Government's minimum needs or requirements or other rational for restricting competition) and which form a basis for the justification have been certified as complete and accurate by the technical or requirements personnel.

Prepared By:

Program Office/COR Signature

The contracting officer's certification that the justification is accurate and complete to the best of the contracting officer's knowledge and belief. CO certifies that the anticipated cost to the Government will be fair and reasonable.

The signature below represents the contracting officer's (CO) certification that the justification is accurate and complete to the best of the contracting officer's knowledge and belief.

Contracting Officer Signature

RICHARD

PETRUCELLI

Digitally signed by RICHARD

PETRUCELLI

Date: 2026.06.22 14:40:30 -04'00'

PALLAVI CHERUKURI

Digitally signed by PALLAVI

CHERUKURI

Date: 2026.06.22 14:33:33 -04'00'