R--DE-SOL-0010762 Research Support Services (RSS)

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION U.S. Department of Energy National Energy Technology Laboratory U.S. Department of Energy Research Support Services (RSS) Contract No. 89243318CFE000003 1. Identification of the agency and the contracting activity, and specific identification of the document as a - Justification for Other than Full and Open Competition.The Department of Energy (DOE), National Energy Technology Laboratory (NETL) issues this Justification for Other than Full and Open Competition (JOFOC) to authorize an increase in the value of the Research Support Services (RSS) contract 89243318CFE000003. The contract provides skilled personnel, facilities, equipment, materials, supplies, and services to support NETL in providing quality and timely critical Fossil Energy & Carbon Management (FECM) and other applied energy research support, including activities of importance to national security for DOE's National Nuclear Security Administration (NNSA). 2. The nature and/or description of the action being approved, i.e. sole source, limited competition, establishment of a new source, etc.This justification supports a noncompetitive increase to the value of the RSS contract from its current value of $774,901,131.00 to $1,200,000,000.00, an increase of $425,098,869.00. The increase will continue critical services required to maintain the integrity of the ongoing research and development, to include providing support to DOE's NNSA in executing its national and nuclear security functions while NETL conducts a competitive acquisition for the follow-on requirement. Contract 89243318CFE000003 for RSS was awarded to Leidos, Inc. on June 25, 2018, with an effective date of December 31, 2018. The contract was solicited on an unrestricted, full and open basis, and awarded in accordance with Federal Acquisition Regulations (FAR) Part 15 procedures. The contract was awarded with a three-year base period (December 31, 2018, through December 30, 2021) with two two-year option periods (December 31, 2021, through December 30, 2023, and December 31, 2023, through December 30, 2025), and a three-year option period (December 31, 2025, through December 30, 2028) for a total of ten years if all options are exercised.The solicitation and resulting award explicitly stated the estimated total cost of the contract was not considered a ceiling value. Specifically, Section B.1, Services Being Acquired - Research Support Services expressed that the level of effort specified for the base period was the present level of effort estimated for the performance of work. The contract also states it is to be available for the Government to obtain services for the contract period (TERM), even if the level of effort and/or the estimated cost as originally specified is insufficient. During performance, unprecedented changes in programmatic requirements caused substantial increases in the number of Direct Productive Labor Hours (DPLH) identified for the Contract Line Item Numbers (CLIN). Consequently, the estimated total contract value increased during the base period from $364,720,922.00 to $556,427,645.00 and during Option Period I from $556,427,645.00 to $562,480,588.00. Since then, the estimated contract value has increased to $774,901,131.00. The original estimated total contract value was based on competitive pricing where resource load information was provided within the Request for Proposal. This was established based on historical levels of effort available during the acquisition planning phase, years prior to the start of the contract. The difference between the new requested contract level of $1,200,000,000 and the original estimated total contract value is mostly attributed to the following: (1) a four-fold increase (~$575M) in requests to NETL from DOE NNSA, (2) higher than anticipated cost escalation and increase in foundational FECM and other DOE requests of NETL (+190M), and (3) addition of scope of research projects funded under the Bipartisan Infrastructure Law (BIL), Inflation Reduction Act (IRA), and Laboratory Directed Research & Development (LDRD) authority ($70M). 3. A description of the supplies or services required to meet the agency's needs. The mission of NETL is to help provide clean, safe, affordable, and reliable energy to the American people. All NETL activities support the DOE mission to promote the national, economic, and energy security of the United States. NETL is the only national laboratory owned and operated by DOE. NETL conducts and manages research activities at its sites in Pittsburgh, Pennsylvania, Morgantown, West Virginia, and Albany, Oregon. Research projects at NETL effectively combine science-based simulations with targeted experimental validation from laboratory to demonstration scales to accelerate the technology development process. Research conducted by NETL in its laboratories typically focuses on work consistent with early applied research, but staff are also involved in partnership to mature technology through deployment. NETL is also responsible for nurturing the human capital, and designing and implementing the laboratory capabilities, necessary to assure the world-class stature of its technical core competencies. The RSS contract is used to meet NETL's critical requirement for research support services which enable the laboratory to fulfill its role in supporting DOE's mission. These services are necessary to provide NETL with access to a cadre of requisite experience, skills, and personnel to execute research activities and maintain critical capabilities. The subject action will result in the continuation of services currently being provided by Leidos to include supporting NETL's execution of authorized research and technology discovery, development, and deployment through i) the nurturement of enduring world-class competencies to deliver on the mission of the Department of Energy, and ii) leveraging these competencies to deliver innovative technology solutions and impactful knowledge through basic and applied research and development. The research support services provide critical FECM and other applied energy research support, including activities of importance to national security for DOE's NNSA. The personnel who support NETL through this contract are required to be both professional and knowledgeable, with the necessary experience and skills to execute specialized research activities. The contractor currently provides the necessary skilled personnel, facilities, equipment, materials, supplies, and services necessary for quality and timely research support activities described above under contract number 89243318CFE000003 at all of NETL's locations and some NNSA facilities in both Albuquerque, MN and Washington, DC. A detailed Performance Work Statement is contained in the contract and a Freedom of Information Act (FOIA) released version of the contract is available at the NETL electronic reading room located at http://www.netl.doe.gov/business/site-support. 4. The statutory authority permitting other than full and open competition. This sole source action is being conducted pursuant to 10 U.S.C. 3204(a)(1) and 41 U.S.C. 3304(a)(1) as implemented by the Federal Acquisition Regulations based the authority of FAR 6.302-1, Only one responsible source and no other supplies or services will satisfy agency requirements. 5. A statement demonstrating the unique qualifications of the proposed contractor or the nature of the action requiring the use of the authority. Leidos, as the current contractor, is the sole contractor who has the required personnel, necessary resources, tools, and procedures in-place to ensure continuity of services (I. 114, FAR 52.237-3, Continuity of Services (JAN 1991)) to prevent unacceptable delays in fulfilling the agency's requirement to the Government while a follow-on competitive action takes place. Services must continue without interruption to critical research and development support during this period. Mission critical services include, but are not limited to, research and development activities ranging from fundamental investigations through applied science and engineering research to technology development, as well as the business and administrative support necessary to execute these activities. It includes working with industry and other external entities. Techniques and methodologies employed include, but are not limited to, computational modeling, advanced instrumental measurements, laboratory investigations, process and device studies, and field work. Projects often crosscut technical disciplines, including, but not necessarily limited to, chemistry and chemical engineering, materials science, physics, geoscience, mechanical engineering, biology, environmental science and engineering, mathematics, electrical engineering, computer science, process engineering, and economics. Furthermore, the expertise required to perform these services require specialization in the technologies falling under FECM, NNSA, and other DOE program areas, including but not limited to advanced fossil energy and carbon management systems and integration with other energy systems, carbon dioxide capture, geological storage of carbon dioxide and/or hydrogen, sensors and controls, simulation-based engineering, critical minerals and materials, methane emissions quantification and mitigation, undocumented orphaned wells, fossil energy resource sustainability, methane hydrates, stockpile production integration and sustainment, and modernization for stockpiles, pit production, strategic materials production, warhead assembly, and non-nuclear activities. Leidos is the only source capable of providing immediate and uninterrupted services; and if services should not continue, the Government would fail to meet important milestones. Interruption of these services would make it impossible to deliver necessary results at the level and quality required to maintain the integrity of ongoing research and development. Disruption to services would have negative ramifications to DOE which include, but are not limited to, the following: - NNSA support under the RSS contract will cease. This includes important functions supporting Engineering and Technology Maturation, Stockpile Production Integration, Stockpile sustainment, Stockpile Modernization, Pit Production Modernization, Strategic Materials Production Modernization, Warhead Assembly and Non-nuclear Modernization. - Mineral Sustainability/Critical Materials: Significant Research & Development (R&D) support under the Bipartisan Infrastructure Law (BIL) and base FECM appropriations will cease with impacts to NETL's support on unconventional and secondary sourcing for domestic rare earth elements. The start-up of the newly awarded Critical Minerals Supply Chain Research Facility under the NETL-led multi-lab consortium, Minerals to Materials Supply Chain Research Facility (METALLIC) will be unacceptably delayed. This NETL-led multi-lab consortium is accountable for nearly the entirety of the Critical Materials Supply Chain Research Facility Bipartisan Infrastructure Law (BIL) Provision 41003. - U.S. Environmental Protection Agency (EPA) Methane Emission Reduction Program (MERP) under the Inflation Reduction Act (IRA): Support will cease for significant foundational support for states that have received grants and anticipated awardees under a new funding opportunity announcement (FOA) to curb methane emissions in legacy wells and related infrastructure. This support includes field work on methane emissions measurements, geospatial modeling and reporting, sensor development, and associated data analysis and management'all critical to the success of these EPA projects and the programs. - Carbon Dioxide Capture, Removal, and Utilization: Significant R&D support under BIL and base FECM appropriations will cease. Of note, this includes start-up and operations of the NETL Direct Air Capture (DAC) Test Center whose construction was specifically authorized by Congress, including plans to test DAC technologies in support of the Precommercial Direct Air Capture Technologies Prize Competitions BIL Provision 41005 (and subsequent Commercial DAC Prize Competition BIL provision), industry-funded and developed technology, and NETL-developed technology. - Carbon Dioxide Storage: Significant support under BIL and base FECM appropriations will cease. Of note, this includes NETL-led multi-lab initiatives funded by the Carbon Storage Validation and Testing BIL Provision 40305 aiming to accelerate the deployment of field scale carbon storage by providing computational tools and research activities to have real-time forecasting of carbon storage reservoir behavior, expedite permitting, reduce uncertainty, and build confidence that geologic carbon storage can be done safely and effectively to help enable full-scale implementation. - General research support activities including export control review support activities, laboratory management support, and support for technology transfer and patent/licensing activities. As Leidos is the only source capable of providing the unique mix of requisite services without interruption, the increase in award value will provide critical support activities and time to complete the process to competitively award a follow-on contract. 6. A description of efforts to ensure that offers were solicited from as many potential sources as is practicable. Include whether or not a contract opportunity announcement was made and what response, if any, was received, and include the exception under FAR 5.202 when not synopsizing. Describe whether any additional or similar requirements are anticipated in the future. (This may not be included as an addendum, but must be in the body of the JOFOC.) Aside from the original pre-solicitation, solicitation, and award notifications; no subsequent announcement has been made to SAM.gov or any Government Point of Entry (GPE). The contractor is currently performing the related services at the NETL Morgantown, West Virginia, Pittsburgh, Pennsylvania, and Albany, Oregon sites; in addition to providing support to NNSA in both Albuquerque, MN and Washington, DC. As this action is to provide NETL enough contract value to complete a competitive process resulting in a follow-on contract for this requirement, no advertisement was made. This process will include solicitation from the maximum number of sources consistent with FAR 5.2, Synopses of Proposed Contract Actions. 7. Cite the anticipated dollar value of the proposed acquisition including options if applicable and a determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable. The increase to the contract value requested through this justification is $425,098,869.00 which will result in a total estimated value of $1,200,000,000.00. This award was competitively solicited and awarded with all labor and indirect rates determined to be fair and reasonable at the time of contract award. No changes are being made to the period of performance of the present contract because of this action. Any new labor categories and/or rates would be reviewed for reasonableness prior to becoming effective, although it is not anticipated additional labor categories or rates will be required. The level of effort has been established based on the Government's cost estimate for anticipated services needed while a competition is conducted. The Contracting Officer has determined that the anticipated cost is fair and reasonable. 8. A description of the market research conducted and the results or a statement of the reason market research was not conducted. Do not simply refer to the sources sought synopsis. As part of NETL's acquisition planning process, market research will be completed and taken into consideration for the follow-on requirement which will be solicited competitively. 9. Any other facts supporting the use of other than full and open competition, such as: a. Explanation of why technical data packages, specifications, engineering descriptions, statements of work or purchase descriptions suitable for full and open competition have not been developed or are not available. NETL intends to conduct acquisition planning for the future acquisition to meet this requirement which would include a performance work statement. To date, neither a formal acquisition plan nor performance work statement has been prepared as the initial award of 89243318CFE000003 was intended to provide RSS support through December of 2028. NETL is committed to prioritizing the development of these documents in support of a follow-on requirement which is anticipated to be solicited competitively prior to the ultimate completion of 89243318CFE000003. b. When FAR Subpart 6.302-2 is cited for follow on acquisition as described in FAR 6.302-1(a)(2)(ii), an estimate of cost to the Government that would be duplicated and how the estimate was derived. Not applicable. This justification is not being prepared in accordance with FAR 6.302-2 for a follow-on acquisition described in FAR 6.302-1(a)(2)(ii). c. When FAR 6.302-2 is cited, data, estimated cost, or other rationale as to the extent and nature of the harm to the Government. Not applicable. This justification is not being prepared in accordance with FAR 6.302-2 for a follow-on acquisition described in FAR 6.302-1(a)(2)(ii). 10. A listing of the sources, if any, that expressed a written interest in the acquisition. None. See paragraph 6. 11. A statement of actions the agency may take to remove or overcome any barriers to competition if subsequent acquisitions are anticipated. The purpose of this action is so NETL has the time necessary to compete the follow-on requirement to the greatest extent possible.