--Notice of Intent to Sole Source (Add Q&A)

.The Nuclear Energy Oak Ridge Site Office (NE-ORSO) of the Department of Energy (DOE) plans to contract with American Centrifuge Operating LLC (ACO), a subsidiary of Centrus Energy Corp., for the demonstration of high assay low enriched uranium (HALEU) production to support DOE research and development activities and programs. The HALEU Demonstration Program has two primary objectives: (1) Deployment of a 16 machine AC-100M HALEU Cascade producing a 19.75% U235 enriched product by October 2020; and (2) Demonstration of the capability to produce HALEU with existing U.S.-origin enrichment technology, and provide DOE with a small quantity of HALEU beginning in 2020 for use in its research and development for the advancement of civilian nuclear energy and security, and other programmatic missions. The period of performance for this award is anticipated to be January 2019 ? December 2020 with a one year option. ACO is the only source capable of executing the contract activities to meet the requirements of the HALEU Demonstration Program. DOE?s objective is to demonstrate the capability to produce HALEU by October 2020 utilizing U.S.-origin uranium enrichment technology. The use of existing U.S.-origin enrichment technology is needed in order to meet this schedule. Demonstrating the capability of U.S.-origin enrichment technology for the production of HALEU is the objective because only U.S.-origin technology would be capable of producing HALEU for use in any type of advanced reactor application, civilian or defense-related. The AC- 100M enrichment technology is the only existing U.S.- origin uranium enrichment technology, and, further, it has the potential to be deployed at a commercial-scale serving the broadest market need. In addition, due to the sensitive nature regarding access to and operation of U.S.-origin enrichment technology, the Department requires the contractor to be a U.S.-owned and U.S.- controlled entity. ACO, as well as Centrus Energy Corp., are U.S.-owned and U.S.-controlled entities. Further, ACO is the only U.S.-owned and -controlled entity with an existing NRC license that would enable it to meet DOE?s schedule for the demonstration, and ACO is currently subleasing DOE?s facility in Piketon, Ohio designed for uranium enrichment operations. ACO is in this unique position because it developed the AC- 100M centrifuge and associated equipment; it possesses proprietary data associated with advanced designs related to that technology; and it has demonstrated technical expertise in operating the AC- 100M equipment and technology. In sum, ACO is the only U.S.-owned and -controlled entity capable at this time to demonstrate and operate the only existing U.S.- origin uranium enrichment technology on the required schedule. Therefore, DOE intends to award a sole source contract to ACO. In accordance with Competition in Contracting Act, 41 U.S.C. 3304(a)(1), as implemented by FAR 6.302-1, other than full and open competition is authorized when there is only one responsible source and no other supplies and services will satisfy agency requirements. This is a NOTICE OF INTENT; no solicitation is available for this requirement. If a firm believes that it has the capability to perform this work within the schedule described above, then it may submit a capability statement NO LATER THAN January 22, 2019, by 3:00 p.m. (Eastern) via e-mail to contact@example.gov. The written response must include demonstration of the firm?s capability to perform the services indicated in this announcement, including demonstration of capability to obtain access to AC-100M enrichment technology in accordance with 10 CFR Part 725, evidence of the firm?s ownership and control, and past performance information for similar work. A determination by the Government to compete this proposed contract action based upon responses to this notice is solely within the discretion of the Government. Questions and Answers: Question: Regarding the following sentence: Demonstrating the capability of U.S.-origin enrichment technology for the production of HALEU is the objective because only U.S.-origin technology would be capable of producing HALEU for use in any type of advanced reactor application, civilian or defense-related. Is it DOE's position that U.S.-origin technology is required to produce HALEU for civilian advanced reactor applications? Answer: No, it is not DOE's position that U.S.-origin technology is required to produce HALEU for civilian advanced reactor applications. However, HALEU produced using U.S-origin technology can be used in both civilian and defense-related advanced reactor applications. Accordingly, as stated, the objective of this procurement is to demonstrate the capability of U.S.- origin enrichment technology for the production of HALEU because such HALEU could be used in any type of advanced reactors, including defense reactors that require the use of HALEU produced using U.S.- origin technology. The addition of the question and answer is the only change to the Notice of Intent dated 01/07/2019. There is no modification to the response deadline of 01/22/2019.