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--Notice of Intent to Sole Source

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89303519CNE000005Federal

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The Department of Energy’s Nuclear Energy Oak Ridge Site Office (NE-ORSO) intends to award a sole source contract to American Centrifuge Operating LLC (ACO), a U.S.-owned subsidiary of Centrus Energy Corp., to demonstrate high assay low enriched uranium (HALEU) production. This contract supports DOE research and development activities by deploying a 16 machine AC-100M centrifuge cascade capable of producing uranium enriched to 19.75% U-235 by October 2020. The demonstration aims to show that HALEU can be produced using existing U.S.-origin enrichment technology and to supply DOE with HALEU for advanced civilian nuclear and security applications. ACO is uniquely positioned for this task due to its proprietary development of the AC-100M technology, its NRC license, operational expertise, and control of the appropriate DOE facility in Piketon, Ohio. The contract is expected to run from January 2019 through December 2020, with an option for an additional year. Because of the sensitive nature of uranium enrichment and the requirement to utilize U.S.-origin technology, DOE has determined that ACO is the only responsible source capable of meeting the stringent schedule and technical requirements. The notice clarifies that this award is based on a sole source justification under the Competition in Contracting Act, given no other entity can fulfill the program goals within the required timeframe. Interested firms with the capability to perform this work were invited to submit statements by January 22, 2019, although the government retains the sole discretion to pursue competition.

General Info

DOE awards sole source contract to ACO for HALEU uranium production using AC-100M centrifuges.

Agency

N/A

NAICS

541715 - Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Place of Performance

Not specified

Set-Aside

NONE

Documents

0

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Timeline

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Organization & Contact Information

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Full Description

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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% U-235 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, 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.-owne d 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 an interested 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.

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