R--Limited Sources Justification for Logical Follow On to DE-DT0004091

The purpose of this amendment is to modify the archive date. ________________________ The following limited sources justification is posted in compliance with FAR 5.301 and FAR 8.405-6(a)(2). The redacted limited sources justification is also attached in FedConnect in pdf form. Limited Sources Justification DEPARTMENT OF ENERGY OFFICE OF NUCLEAR ENERGY DE-DT0004091 _____________________________________________________________________________ 1. Identification of the agency and the contracting activity The Department of Energy (DOE), Office of Nuclear Energy (NE), plans to contract by means other than full and open competition. DOE Headquarters Procurement Services (MA-64) will execute the action. This document sets forth the justification and approval for the use of one of the exceptions to full and open competition under the FAR 8.405-6(a)(1)(i)(C), ?In the interest of economy and efficiency, the new work is a logical follow-on to an original Federal Supply Schedule order provided that the original order was placed in accordance with the applicable Federal Supply Schedule ordering procedures. The original order or BPA must not have been previously issued under sole-source or limited-sources procedures.? This contract action will be conducted under the authority of the General Services Administration (GSA) Multiple-Award Schedule (MAS) Program. 2. The nature and/or description of the action being approved This justification authorizes and approves the sole source, time and materials award of an additional twelve months (in the form of one, 6-month option and two, 3-month options) to task order DE-DT0004091. The award will be made to the current contractor, TechSource, Inc. against its GSA Federal Supply Schedule (FSS) Contract number GS-00F-003DA to ensure continued technical engineering services support to the NE Office of Fuel Cycle Technologies (NE-5). The experimental neutrino transmutation research project currently underway under DE-DT0004091 cannot be stopped midstream and restarted without losing continuity, reactor facility use, and key graduate student personnel. The project is scheduled to run through the High Flux Isotope Reactor (Oak Ridge National Laboratory) operating schedule until the end of May 2016, after which detailed data analysis is required to reach the final results. The reactor will not be available for this work after May 2016. Without measurements in contin uous sequence with the reactor-on and reactor-off, the project goals of measuring the lifetime reduction effect along with the quantifying systematic errors will not be possible. The project would have to start over from the beginning, resulting in unnecessary cost to the Government. The maximum period of performance of this additional period for DE-DT0004091 is 12 months, comprised of one, 6-month option and two, 3-month options. The option structure has been selected to provide the maximum flexibility in completing the research projects and transitioning to a new, competitively awarded vehicle. DE-DT0004091 was competed in 2012 under FAR Subpart 8.4 and will expire on 12/29/2015. MA-64 is currently working with NE-5 to conduct a competitive follow-on procurement, which is anticipated to be awarded no later than the first quarter of fiscal year (FY) 2017. 3. A description of the supplies or services required to meet the agency?s needs. TechSource Inc. currently provides technical engineering services to NE-5 under DE-DT0004091. The awarded scope includes the following services: (1) Systems analysis of proposed process systems; (2) Fuel cycle evaluation and screening: (3) Planning, development, and establishment of an internal review and evaluation capability for all programs, to objectively assess planning, research, and development, and technical demonstrations; (4) Review, evaluation, and development of plans and strategies for integration of nuclear programs; (5) Development and continuous improvement of program control procedures, program plans and strategies, and resolution of program reasonableness issues; and (6) Facilitation and participation in review of National Laboratory, university and industrial nuclear energy research project proposals and progress reports and development of recommendations for DOE managers on the value of the research and whether to start or continue funding projects. Specifically, NE-5 requires award of a logical follow-on to De-DT0004091 to make sure current work under the task order is completed without losing progress already made in research efforts. NE-5 estimates that the current research under this task order will be completed no later than the first quarter of fiscal year (FY) 2017. The estimated value of this logical follow-on is [redacted], as shown below. Period Estimated Value Base (6-month) [redacted] Option Period 1 (3-month) [redacted] Option Period 2 (3-month) [redacted] TOTAL [redacted] 4. The statutory authority permitting other than full and open competition. Orders placed under the GSA FSS are exempt from the competition requirements in FAR Part 6. However, an ordering activity must justify its action when restricting consideration of FSS contractors to fewer than required in FAR 8.405-1 or 8.405-2.This justification is executed under the authority of the Multiple-Award Schedule Program, specifically the authority granted by FAR 8.405-6(a)(1)(i)(C), ?In the interest of economy and efficiency, the new work is a logical follow-on to an original Federal Supply Schedule order provided that the original order was placed in accordance with the applicable Federal Supply Schedule ordering procedures. The original order or BPA must not have been previously issued under sole-source or limited-sources procedures?. DE-DT0004091 was competed as a small business set-aside under GSA Schedule 871 in the third quarter of FY 2012. Two proposals were received, and the proposal of TechSource, Inc. was determined to be the best value for the Government. NE, in conjunction with the contract specialist and contracting officer, has determined that it is in the best interest of the Government to award a logical follow-on to the incumbent contractor to complete research work in progress. Award of a logical follow-on will capitalize on time and financial investment already made into the research work. If a logical follow-on award is not permitted, a new company would have to begin the research independently, wasting previous investment and seriously delaying the use of research results by NE. Transition of the DE-DT0004091 scope before this critical research is completed would cause disruption to NE?s mission and would result in an increased cost to achieve the end goal. TechSource, Inc. remains a small business under NAICS code 541330 Engineering Services, which has a small business size standard of $15 million. 5. A statement demonstrating the unique qualifications of the proposed contractor or the nature of the action requiring the use of the authority. Under the previously described scope, the current contractor provides Subject Matter Experts (SMEs) that support NE?s Office of Fuel Cycle Technologies in the following areas: Advanced Fuel Cycle fuels and materials; Materials Protection Accountability and Control; Separations and Waste Forms; and Nuclear Fuel Storage Systems. The SMEs provide their technical expertise in the areas below: ? Develop and demonstrate technologies to: o Reduce the environmental and financial burden and uncertainty associated with long-term nuclear waste management. o Optimize nuclear waste management. o Recover the unused value of materials separated from used nuclear fuel for future use. o Ensure the ability to safeguard the advanced fuel cycle technologies as well as development of next-generation technologies to support future deployments. o Make the closed fuel cycle as cost effective as possible. o Accelerate deployment of small modular reactors that are safe and economical. o Support the establishment of a regulatory framework for licensing and permitting of new reactor concepts and fuel cycle facilities. ? Develop the research and development infrastructure needed to mature nuclear energy technologies to the engineering-scale. ? Support the development of personnel who will be needed to staff industry, regulators, government, universities and national laboratories to allow future sustainable fuel cycles in the United States and reinvigorate United States? global technological leadership. The majority of the work under DE-DT0004091 is on-going research projects that cannot be transferred to a new contractor. As TechSource, Inc. assisted in the design and implementation of this research, it is uniquely qualified to complete the current research projects and provide the data results to the Government. The research projects are anticipated to be completed no later than the first quarter of FY17. The Government will not be able to complete necessary research activities without award of a logical follow-on to the incumbent contractor. Failure to allow for a logical follow-on award will result in loss of investment already made in current research efforts. 6. A description of efforts to ensure that offers were solicited from as many potential sources as is practicable. The award of this logical follow-on action will be publicized via posting to FedBizOpps in accordance FAR 8.404(g)(2)(i) and FAR 5.301. Additionally, this Limited Sources Justification will be posted in accordance with FAR 8.404(g)(2)(ii). No additional sources were sought for this specific action, as it is critical that the research projects under this task order be completed by TechSource, Inc. MA-64 is currently working with NE to prepare a competitive follow-on acquisition that will include the general scope of this task order. The solicitation for the competitive follow-on is anticipated to be posted in the second quarter of FY 2016. 7. Cite the anticipated dollar value of the proposed acquisition including options if applicable and a determination by the Contracting Officer that the order represents the best value consistent with 8.404(d): In accordance with FAR 8.404(d) ?GSA has already determined the price of supplies and fixed-price services, and rates for services offered at hourly rates, under the schedule contracts to be fair and reasonable. Therefore, ordering activities are not required to make a separate determination of fair and reasonable pricing, except for a price evaluation as required by FAR 8.405-2(d)? which consists of an evaluation of the level of effort and the mix of labor categories proposed. Additionally, although by placing an order against a schedule contract using the procedures in 8.405, DOE has concluded that the order represents the best value (as defined in FAR 2.101) and results in the lowest overall cost alternative (considering price, special features, administrative costs, etc.) to meet the Government?s needs, DOE will seek additional discounts consistent with FAR 8.405-4. The total estimated value for this logical follow-on is [redacted]. The estimated value is determined fair and reasonable based upon comparison of TechSource, Inc. GSA FSS labor rates to historical rates and the independent Government cost estimate as well as comparison to other contractor rates for similar labor categories. 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. Currently, TechSource, Inc. is the only company that is capable of completing the necessary research work in support of NE?s mission without a significant and damaging lapse in service. NE is working with MA-64 to compete a replacement contract that includes the general scope of this award. The competed follow-on contract is expected to be awarded no later than the first quarter of FY 2017. 9. Any other facts supporting the use of other than full and open competition, such as: None. 10. A listing of the sources, if any, that expressed a written interest in the acquisition. None. 11. A statement of actions the agency may take to remove or overcome any barriers to competition if subsequent acquisitions are anticipated. The agency does not foresee any barriers to competition, as the follow-on requirement is expected to be competed using full and open competition. ? 12. Certification The information contained in this Limited Sources Justification is certified accurate and complete to the best of my knowledge and belief. [redacted signatures]