West Valley Development Project (WVDP) Technical Assistance Contract (TAC)

JUSTIFICATION FOR EXCEPTION TO FAIR OPPORTUNITY
Project Name: West Valley Development Project (WVDP) Technical Assistance Contract (TAC)
Estimated Cost/Price of the Task Order: Approximately $5M
Authority: FAR 16.505(b)(2)(i)(C)
Type Determination: Individual

I. Contracting Activity
United States Department of Energy, Environmental Management Consolidated Business Center (EMCBC), Office of Contracting, Contracting Officer, Jennifer K. M. Splitt.

II. Nature and/or Description of the Action Being Processed
The EMCBC is proposing to issue a logical follow-on task order for the West Valley Demonstration Project (WVDP) for necessary technical, administrative, and database management services. The type of services are the same as the services described in the performance work statement for the master IDIQ contract, 89303322DEM000084, and currently being performed on the current WVDP TAC Task Order, 89303323FEM400321 (hereinafter the “Current WVDP TAC Task Order”). The proposed scope of the follow-on will also be initiated upon expiration of the period of performance of the current Task Order and the master IDIQ contract, and is well within the maximum ordering quantity of the master IDIQ contract.
The current West Valley TAC Task Order was competitively awarded under the EM Field Site Technical Assistance Contracts (hereinafter “Site TACs”) Multiple Award Indefinite Delivery Indefinite Quantity (IDIQ) Contract. Seven (7) contractors were awarded under the Site TACs IDIQ. The objective of the multiple award IDIQ is to provide technical assistance for DOE’s Field Sites supported by EMCBC. These sites include WVDP, EM Los Alamos Field Office (EM-LA), and the Moab Uranium Mill Tailings Remedial Action (UMTRA) Project, among other EM Field Sites. The scope of the Technical Assistance Contracts for EM Field Sites includes safeguards and security, emergency management, quality assurance, project integration, data management, administrative support, regulatory/environmental compliance, nuclear safety, waste management, records/information management, engineering, training, property management, public affairs, cost estimating, and technical editing.
The Site TACs IDIQ has a five (5) year ordering period, with a period of performance from September 20, 2022 to September 19, 2027. Under the chosen IDIQ contract type, the authority exists to issue logical follow-on task orders. The FAR and the Site TACs IDIQ (H.41 Task Ordering Procedure) provide statutory and contractual exceptions to the Fair Opportunity 
process. Among these exceptions is the issuance of a Task Order on a sole-source basis in the interest of economy and efficiency as a logical follow-on to an order already issued under the IDIQ contract, provided that all awardees were given a fair opportunity to be considered for the original WVDP Task Order.

All eligible EM Site TACs contract holders were provided a fair opportunity to compete for this work. Before issuance of the current WVDP TAC Task Order, all seven holders of Site TACs contracts were provided a Request for Task Order Proposal on November 4, 2022 with a requested proposal submission deadline of November 20, 2022. Six (6) contractors submitted proposals in response to the solicitation and FPM AECOM JV1 was selected. FPM AECOM JV1’s management approach and transition of work approach and capability combined with a realistic and reasonable cost and price resulted in the best value determination in its favor. The Ordering procedures of the Site TACs IDIQ (clause H.41) included statutory exceptions to the Fair Opportunity Process allowing DOE to issue a logical follow-on task order on a sole source basis in the interest of economy and efficiency. Thus, contract provisions put all eligible Site TACs IDIQ contractors on notice at the time the Current WVDP TAC Task Order was solicited that DOE could issue the awardee a sole-source logical follow-on task order.

The Current WVDP TAC Task Order is valued at approximately $9M and the period of performance is from 1/23/2023 to 09/12/2026. Under the Current WVDP TAC Task Order, DOE is currently utilizing services related to project controls, safeguards and security, quality assurance, administrative support, and emergency management. FPM AECOM JV1’s performance in providing the required services to date has been rated Very Good to Exceptional, reflecting excellent quality, cost control and management. FPM AECOM JV1 has built effective working relationships with stakeholders and has been very flexible, able to respond quickly and positively to changes and direction from DOE.

If DOE transitions to a new contractor, it can expect to experience increases in costs, quality variances and management risks during the time it would take for the new contractor to learn to perform at least as well as FPM AECOM JV1 is now performing. Additionally, DOE expends at least two years of time and resources when it procures such services competitively. Through its several years of high-quality performance, FPM AECOM JV1 has gained valuable institutional knowledge and experience to continue performing well. The work at the WVDP will benefit from moving forward towards a finished state rather than experiencing the delays and possible missteps or even dangers that would result from introducing a less experienced contractor to the project work. Consequently, DOE expects to achieve significant benefits in economy and efficiencies by issuing a logical follow-on task order to FPM AECOM JV1 for the WVDP TAC Task Order.

Considering the benefits to the WVDP of continued performance by FPM AECOM JV1 and the costs in time and resources to re-compete the Task Order, issuing FPM AECOM JV1 a follow-on task order on a sole-source basis will be the most economic and efficient method to meet the requirements.

III. Description of the Supplies/Services Required To Meet the Agency’s Needs (including the estimated value)
SOURCE SELECTION INFORMATION—see FAR 2.101 and 3.104

The scope of the proposed follow-on task order is to continue technical assistance work including project controls, safeguards and security, quality assurance, nuclear safety, administrative support, and emergency management. The application of this contract, with the skillset listed above is the most efficient application of technical and administrative support requirements if/when DOE needs immediate support with highly competent and qualified individuals with the required expertise.

IV. Authority Permitting a Fair Opportunity Exception
FAR 16.505(b)(1)(i) requires the Contracting Officer to provide each awardee under a multiple award contract, a fair opportunity to be considered for each order exceeding the micro-purchase threshold ($15,000) unless a statutory exception applies. The specific exception that precludes the fair opportunity process for this acquisition is FAR 16.505(b)(2)(i)(C):
The order must be issued on a sole-source basis in the interest of economy and efficiency because it is a logical follow-on to an order already issued under the contract, provided that all awardees were given a fair opportunity to be considered for the original order.

The new WVDP TAC Task Order is a logical follow-on in terms of the anticipated scope of the, period of performance, and value as all will be comparable to the current Task Order that FPM AECOM JV1 is successfully performing (see discussion in Sections III and

VI). The IDIQ contracts offer DOE access to a pre-qualified pool of 12 Small Businesses and allow for streamlined task order awards. However, with the fair opportunity requirement having been met in the original order, conducting another IDIQ contract competition for virtually the same requirements would be needless, especially when the IDIQ contract provisions allow DOE to take the more prudent course of action in negotiating a justified follow-on Task Order to FPM AECOM JV1.

The proposed task order will be issued on a sole-source basis in the interest of economy and efficiency. Awarding a follow-on task order will save time in relation to the amount of time required for a new competitive acquisition. In addition to the acquisition time savings, there are numerous other economies and efficiencies that will be realized, including, but not limited to, avoidance of re-procurement costs, workforce stability, and avoidance of learning curve disruptions. Due to relationships that have been established with regulatory agencies, a follow-on task order award to FPM AECOM JV1 will preserve a level of confidence in regulators that the project is operating according to regulatory requirements (safe and sound practices per applicable laws and regulations).

There is little to no potential for DOE to see significant technical benefits by competing this work. Since the current WVDP TAC Task Order scope is a technical assistance contract, the same basic work scope will be completed in the follow-on task order as is currently being performed. There are few, if any, opportunities to improve the technological approach in a way that would reduce costs.

Maintaining the momentum of the current operations is the most economical acquisition alternative. There are significant economies and efficiencies to be gained by issuing a follow-on task order to FPM AECOM JV1. Transition costs would be avoided with a follow-on task order to FPM AECOM JV1. Also, under a follow-on task order, the workforce will remain stable and will not experience learning curve disruptions.

As stated above, the work would be essentially the same under the follow-on Task Order with the same repetitive operations work scope described in the initial WVDP TAC Task Order. Similarly, the period of performance and value of the follow-on Task Order will be comparable.

V. Determination by the Contracting Officer That The Anticipated Cost to the Government Will Be Fair and Reasonable
The current WVDP TAC task order is a time-and-materials task order. Current and past task order performance history will provide DOE the tools to determine a fair and reasonable price for the Direct Productive Labor Hours (DPLH) work in the follow-on task order.

Additional cost savings from this follow-on task order result from DOE further refining its requirements. DOE determined that the efficiency of the current contractor as well as changes to necessary technical support allowed DOE to eliminate several positions on the new task order, saving the Government over $3M on the new follow-on task order.

An analysis of the historical cost and escalation rates and trends under the current Task Order will be used as a basis to negotiate the price for the follow-on work. A detailed cost analysis of the elements of cost, for which certified cost or pricing data will be submitted, as well as an IGCE, will be used to evaluate and negotiate a fair and reasonable price for the follow-on work.

VI. Other Facts Supporting the Justification
FPM AECOM JV1’s performance to date has been very good to exceptional overall. FPM AECOM JV1 has additionally done a very good job of building effective working relationships with stakeholders. FPM AECOM JV1 has been very flexible and able to respond quickly and positively as changes to the original task order requirements have been made through contract modifications.

VII. Actions the Agency May Take to Remove or Overcome Any Barriers To Increasing Fair Opportunity Before Any Subsequent Acquisition For the Supplies or Services
Any contract for technical assistance to support WVDP subsequent to the logical follow-on task order would not be accomplished under the existing Site TACs IDIQ, as the IDIQ ordering period will expire in 2027, well before DOE would begin future procurement planning. Additionally, DOE will solicit for any requirements subsequent to the logical follow-on using the procedures described either in FAR Subpart 6.1, Full and Open Competition, or FAR Subpart 6.2, Full and Open Competition After Exclusion of Sources.
SOURCE SELECTION INFORMATION—see FAR 2.101 and 3.104
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VIII. Contracting Officer’s Certification
The Contracting Officer’s signature on the signature page evidences that the CO determined this document to be both accurate and complete to the best of her knowledge and belief.

IX. Technical/Requirements Personnel’s Certification
As evidenced by their signatures on the signature page, the technical and/or requirements personnel have certified that any supporting data contained herein which is their responsibility is both accurate and complete.

X. Determination by Approving Official
The Approving Official determined based upon the analysis in this justification that the circumstances in 16.505(b)(2)(i)(C), a logical follow-on to the original order, applies to the proposed Task Order.