Sources Sought Final 3-9-2022.docx

SOURCES SOUGHT

for Request for Proposal Number/Title: 89243222RNE000026, High Assay Low Enriched Uranium (HALEU) Cascade Demonstration (DEMO) Completion and Extended Production

THIS IS A SOURCES SOUGHT NOTICE. A SOURCES SOUGHT IS NOT A PROPOSAL SOLICITATION AND DOES NOT GUARANTEE THAT THE GOVERNMENT WILL ISSUE A SOLICITATION OR REQUEST FOR PROPOSALS.

THIS SOURCES SOUGHT NOTICE IS RELEASED PURSUANT TO FAR 10.001(a)(3)(i) AND FAR 15.201(e) FOR THE PURPOSE OF OBTAINING MARKET RESEARCH ON INTERESTED SMALL BUSINESS INDUSTRY PARTIES FOR THE U.S. DEPARTMENT OF ENERGY (DOE) PIKETON, OHIO HIGH ASSAY LOW ENRICHMENT URANIUM (HALEU) CASCADE DEMO COMPLETION AND OPERATIONS PROCUREMENT. DOE ANTICIPATES THE ISSUANCE OF A FINAL REQUEST FOR PROPOSAL (RFP), SOLICITATION NUMBER 89243222RNE000026, FOR THE HALEU CASCADE DEMO PROCUREMENT DURING APRIL OR MAY 2022.

BACKGROUND: The DOE Office of Nuclear Energy (NE) issued an award in May 2019 to fund the demonstration and production of high-assay low enriched uranium (HALEU) for DOE. The demonstration was on schedule to produce between 200 kg and 600 kg of HALEU, using 16 AC100M centrifuges, by June 1, 2022, at the Piketon, Ohio, gas centrifuge enrichment facility owned by DOE. The AC100M centrifuge technology represents the culmination of many years of domestic development and, while being a complex design, it is also one of the most capable in terms of enrichment capacity. However, the demonstration was affected by COVID-related supply chain cost and schedule issues near the completion of the work, which resulted in delay of production. As of January 1, 2022, the current HALEU contractor has completed approximately 92% of the activities required for demonstrating production of HALEU. Due to the importance of production of HALEU to supply the DOE advanced reactor demonstration program (ARDP) with the necessary fuel source, DOE intends to support longer-term demonstration and production capability by offering a competitive procurement contract award for the completion of the demonstration cascade and production of HALEU at the conclusion of the existing contract. This new procurement will address supply chain issues and increased requirements for production and material storage.

OBJECTIVES: DOE wishes to minimize the impacts to union jobs and the existing skilled workforce while preventing adverse impacts to communities potentially affected by the HALEU demonstration. All aspects of this procurement will require compliance with labor laws and energy justice policies (Justice40).

Completion of the HALEU demonstration cascade, followed by a sustained production of HALEU of 900 kg per year, will help to supply the advanced reactor demonstration program (ARDP) with a necessary fuel source. The ARDP is crucial for the U.S. to demonstrate a leadership position in clean energy economy. The ARDP will require more than the annual production of 900 kg of uranium, enriched to a nominal 19.75 weight percent U-235. It is envisioned that the commercial sector will develop and provide the additional HALEU for the ARDP outside of this contract. In addition, operation of the HALEU demonstration cascade will provide data to document the performance and reliability of the completed cascade when configured using the AC100M centrifuges.

REQUIREMENTS: DOE intends to award a single contract from the upcoming solicitation. DOE intends to use a phased approach with options during the period of performance. DOE intends to support a transition period of 90 days with the current contractor to ensure a smooth transition from the existing contract and for the contractor workforce.

Phase 1 of the contract will entail the completion of the HALEU demonstration cascade and requires a 50:50 cost share in accordance with the Energy Policy Act of 2005 (EPAct 2005). Phase 1 will require the successful offeror to complete construction of the AC100M cascade, complete construction of the Fissile Material Storage Area (FMSA) and operate the completed cascade to demonstrate an initial 20 kg of HALEU production. All material produced must be withdrawn from the cascade and securely stored for future shipment to DOE customers. Collecting and documenting operational data associated with the cascade will be included as a requirement for the new contract.

Phase 2 shall be one initial year of 900 kg of HALEU production at a minimum and begins immediately after the initial 20 kg of production is complete. The completion of Phases 1 and 2 shall be considered the Base Contract.

After completion of Base Contract, DOE anticipates a Phase 3 which would exercise up to three, three-year option periods for a combined total of 10 years of production (Phases 2 and 3) at a minimum production level of 900 kg per year. Performance of Phase 1 and Phase 2 does not guarantee the Contractor will be authorized to proceed with the Phase 3 option periods of production.

DOE anticipates both Phase 2 and Phase 3 of the contract will be cost reimbursement with incentive fee, with no cost share requirements. All option periods will be based on the availability of funds and contractor performance.

The contractor shall provide or obtain resources necessary to accomplish the tasks and deliverables described in the forthcoming RFP, which includes labor, equipment, and procurement of the required feed material. DOE encourages the use of currently employed skilled union workforce to the maximum extent practicable and any other efficiencies that will benefit the project success. Work will be performed in the DOE-owned facility in Piketon, Ohio. The existing facility and installed government-owned equipment/property will be made available to the successful offeror.

Manufacturing of the centrifuges is complete; however, construction of the cascade requires the installation of the centrifuges. Installation of the centrifuges was put on hold until the new SOW is in place under the new contract. Additionally, under the existing contract, the FMSA is approximately 60% complete (based on the original contract scope of 200 kg HALEU storage capacity). DOE, therefore, will require that the new contract awardee also complete the work at the FMSA to address the current storage capacity needs of 920 kg. Other balance of plant and cascade infrastructure needed for the operation of the facility have been completed. DOE will require some testing of those systems once the centrifuges have been installed and process gas (feed material) has been introduced. Utilities and services for the operation of the HALEU demonstration cascade will be provided through work authorizations with DOE’s Environmental Management contractor at the Piketon, Ohio, site. For the purpose of the new contract the direct monthly expense of those work authorizations is estimated to be $650,000 before indirect expenses are included. The Nuclear Regulatory Commission (NRC) will oversee readiness reviews prior to the introduction of the feed material to the cascade.

PLACE OF PERFORMANCE: Performance will be at the DOE-owned American Centrifuge Plant in Piketon, Ohio.

NRC AND LICENSING: DOE will make available the American Centrifuge Plant through a lease arrangement with the successful offeror, separate from the new contract. While the facility is DOE owned, it is largely overseen and controlled by the NRC. The terms of the lease shall be negotiated separately following the award of this contract. The lease would be expected to cost approximately $250,000 per month during the first year and $175,000 per month in subsequent years.

The possession and operation of the facility would require the successful offeror to hold or obtain an NRC fuel cycle license. Potential offerors will need to demonstrate how they expect to obtain an NRC license in response to the RFP.

INTERESTED PARTIES AND SET ASIDE: This procurement is intended to be issued as a 100% small business set aside in accordance with FAR 19.502; however, DOE requests that ALL responsible interested parties regardless of size standard submit a notification of intent to offer, which shall be considered as part of the market research justifying or altering the set aside. If DOE cannot establish a reasonable expectation that there will be at least two small, responsible interested parties in accordance with FAR part 19, DOE will publish the RFP as a full and open competition. DOE National Laboratories may participate, but not as the prime contractor. The award size for the resulting contracts is dependent on the availability of DOE Program funding.

FOREIGN INTERESTED PARTIES: The anticipated contract is restricted to U.S. owned companies, as defined in 32 CFR 2004.34. A certification statement is required to validate those offerors meet this requirement. All proposals will be subject to a review of foreign ownership, control, or influence (FOCI) as defined in DEAR Clause 952.204-2(j) and 32 CFR § 2004.34.

Interested parties are advised that the apparent successful offeror responding to the RFP will be evaluated for any apparent conflicts of interest pursuant to the requirements of FAR subpart 9.5 and DEAR subpart 909.5. DOE reserves the right to deny award based on any apparent conflict of interest that cannot be avoided, mitigated, or neutralized.

A RFP document is anticipated to be released and posted to the http://www.sam.gov web site via the FedConnect website portal (www.fedconnect.net) on or about April 15, 2022, with an anticipated RFP closing response date of May 15, 2022.

DOE anticipates holding a Pre-Proposal Conference in Piketon, Ohio during the RFP publication period. The venue is yet to be determined and will be released in the RFP document.

SUBMISSION OF NOTIFICAITON OF INTENT: All interested parties are invited to submit a capability statement as a notice of intent or interest in the forthcoming RFP, of no more than ten pages, and no smaller than 12-point font.

Capability statements should include the following information as appropriate and as applicable:

1) The North American Industry Classification System (NAICS) code for this requirement is 221113 Nuclear Electric Power Generation, and the small business size standard is 750 employees. State your organization’s size and registration status under this NAICS in System for Award Management (SAM.gov). If not registered under this NAICS, state applicable NAICS code being utilized. Small business teams or joint ventures shall identify the socio-economic status of each member and shall provide a rough description of the work that each member would perform under contract. Small business concerns are requested to provide name of firm, point of contact, phone number, address of firm, CAGE Code, and/or a DUNS or UIE number. (Please note DUNS numbers are soon to be discontinued and will be replaced by Unique Entity Identifier (UEI) in SAM.gov).

2) It is anticipated the American Centrifuge Plant contractor will be required to participate in the multi-employer pension and welfare benefits plans for the existing workforce covered by such plans while performing the requirements of the anticipated contract. Discuss your experience (or that of any teaming partners) in sponsoring employer pension and benefit plans at DOE or other US Government sites.

3) Discuss the project management/project control system you would utilize. Please be prepared to provide information on the project control system you currently utilize for your organization and how it will be tailored for this effort.

4) Discuss any issues the Contracting Officer should consider when developing the solicitation for this requirement. Highlight any factors that would make competing for this contract desirable or undesirable for your firm.

5) Brief Experience and Performance Record (within the past 5 years). Identify all DOE, other Government, or other commercial experience relevant to this Sources Sought Notification (include contract number, dollar value, contract type, role in the effort (i.e. prime contractor or subcontractor) date, scope, duration, client, and contracting agency contact).

6) Identify any Organizational Conflicts of Interest concerns and/or potential OCI’s that you or your teaming partners may have pertaining to the work described in this Sources Sought.

7) Brief discussion regarding any existing NRC licenses for this type of work or your plan to obtain the required licenses. Please provide a copy of any existing NRC license with this submittal.

DOE reserves the right to use all information submitted by, or obtained from, an interested party in any manner DOE determines is appropriate, including, but not limited to, the creation of a competitive solicitation. An interested party should avoid including any business confidential, and/or proprietary information in its response. However, if an interested party must submit such information, the information must be clearly marked accordingly, and the interested party must provide sufficient justification as to why such information is business confidential and/or proprietary. DOE will review submitted information and safeguard it appropriately. The Government will not pay for any information that is provided in response to this announcement nor will it compensate any respondents for the development of such information. DOE personnel may contact firms responding to this announcement to clarify a responder’s capabilities and other matters as part of this market research process.

All capability statements shall be submitted electronically to Mr. Gregory J. Tomlinson, Contract Specialist, at tomlingj@id.doe.gov no later than 3:00 pm Mountain Time on March 31, 2022. All questions pertaining to the announcement should directed to the same.