Irma Brown

1
US Department of EnergyPre-proposal Conference
for Operation of the Depleted Uranium
Hexafluoride (DUF6) Conversion Facilities
Request for Proposal (RFP) DE-RP30-09CC40015

• Irma Brown
• Contracting Officer
• July 14, 2009

2

• 900 am Oversight Manager - Paducah
• 915 am Rules of Engagement
• 930 am Technical/Project Overview by the
  Paducah/Portsmouth Federal Project Director
• 1000 am Break
• 1015 am Special Features of the DUF6 RFP
• 1045 am Section H - Special Contract
  Requirements
• 1100 am Section L - Cost Proposal Instructions
• 1130 am Closing Remarks
• 1135 am Adjourn for Lunch
• 100 pm Paducah Site Tour(s)

3
Rules of Engagement

• Oral questions are not allowed
• 3x5 cards are provided for written questions
• No recording, copying or transcription devices
  (e.g., tape recorders, video camcorders, cellular
  phones, laptops, PDAs, pagers, etc.) are allowed
• Slides, responses to questions, and tour scripts
  will be posted to the website

4
Preview of Upcoming Events

• July 14th at 1pm Site Tour of the Paducah
  Conversion Facilities
• July 16th at 9am Site Tour of the Portsmouth
  Conversion Facilities

5
Reminders for the Tours

• If you have not pre-registered for the site
  tours, you are too late
• No questions will be entertained during the tours
• 3x5 cards will be available for the submission of
  written questions any responses will be posted
  to the EMCBC DUF6 Web site www.emcbc.doe.gov/duf6
• Wear comfortable cotton or wool clothing and
  sturdy shoes (fully enclosed, flat shoes).
  Safety shoes are not required.
• Please inform the tour guide of any medical
  conditions (i.e. pace maker) before the start of
  the tour

6
Todays Objectives

• Improve industrys understanding of the
  Governments requirements as set forth in the
  Final RFP
• Questions submitted on the DRFP have been
  considered in the development of the Final RFP
• Questions may be submitted on 3x5 cards

7
SPECIAL NOTICE

• This Pre-Proposal Conference and Site Tours are
  for informational purposes only. All potential
  Offerors are cautioned that proposals must be
  based on the information provided in the final
  Request for Proposal (RFP) and any amendments
  thereto.
• In the event of any discrepancies between the
  information provided during this Conference and
  Site Tours, the final RFP shall take precedence.

8
Storage and Disposition of DUF6
9
Storage and Disposition of DUF6

• DOE has programmatic responsibility for UF6
  inventory management including DU, NU, and LEU
• DUF6 is contained in steel cylinders now stored
  at Portsmouth, OH and Paducah, KY
• PEIS for Alternate Strategies for the Long-Term
  Management and use of DUF6 approved April 1999

10
Storage and Disposition of DUF6

• Program Drivers
• Elimination of potential environmental and safety
  hazards due to aging and gradually deteriorating
  cylinders
• 1998 Public Law 105-204 Construct and operate
  conversion plants
• 1998 Ohio EPA Final Findings and Orders
• 1999 TDEC Consent Agreement

11
Storage and Disposition of DUF6

• Program Drivers Cont.
• 1999 DUF6 Programmatic Environmental Impact
  Statement recommends that DUF6 be converted to
  more stable chemical form for ultimate disposal
• 2002 Public Law 107-206
• State of Kentucky Agreed Order

12
Storage and Disposition of DUF6

• NEPA Actions
• Final PEIS for Alternative Strategies for the
  Long-Term Management and Use of DUF6 (April 1999)
  led to contracts to design, build, and operate
  conversion facilities at Portsmouth, OH and
  Paducah, KY
• Final EIS for Construction and Operation of a
  DUF6 Conversion Facilities (June 2004) described
  the preferred method of treating and disposing of
  the DUF6
• Supplement analyses (June 2007) described
  preferred options for final disposal of DU-oxide
  as waste at western disposal sites.

13
Site Information-Paducah Cylinder Yards

• 441,000 metric tons DUF6
• 37,606 cylinders

14
Site Information-Portsmouth Cylinder Yards

• 250,000 metric tons of DUF6
• 24,423 cylinders

15
Cylinder Management

• Cylinders are managed consistent with DOE
  approved
• Safety Basis
• Nuclear Materials and Accountability Plans
• Formal obligations with international treaties
  (Paducah)
• Orders with the State of Ohio and Commonwealth of
  Kentucky

16
Conversion Facility Information

• DOE selected Uranium Disposition Services (UDS)
  to design, construct and initially operate
  conversion facilities sized to convert Paducah
  inventory in 25 yrs (18,000 MT/yr) Portsmouth
  inventory in 18 yrs (13,500 MT/yr)
• Conversion is accomplished by reaction of DUF6
  with steam and hydrogen in single-stage fluidized
  bed conversion units
• Products are uranium oxide and hydrofluoric acid
  (55 HF aqueous)
• Plant consists of over thirty-five systems
  including process and balance of plant, i.e.
  utilities
• Located in a Property Protection Area
• Three process lines at Portsmouth vs. four
  process lines at Paducah

17
(No Transcript)
18
Block Flow Diagram
19

• Statement of Work

20
Statement of Work Overview

• Conversion Operations Testing and Start-up
• Defines activities during the first 360 days
• Mobilization and Transition 90 days to
  understand the operations
• Testing and Startup 270 days to perform a
  Readiness Assessment, hot functional testing (if
  option exercised), and partial Conversion
  Operations, ramping up to Conversion Operations
• DOE may elect to have UDS incumbent contractor
  perform hot functional testing after Facility
  Startup Authorization. This will reduce the
  Testing and Startup work for the successor
  contractor allowing partial Conversion Operations
  after Readiness Assessment.

20
21
Statement of Work Overview Cont.

• Conversion Operations
• Conversion Operations is defined by the
  conversion of DUF6 in a routine manner using the
  full design capability of the conversion
  facilities in accordance with DOE Order 5480.19,
  Conduct of Operations Requirements for DOE
  Facilities
• Cylinder Management
• Maintain the Cylinder Information Database (CID)
  and perform Cylinder surveillance and
  maintenance (SM) for DUF6 and the entire UF6
  inventory

21
22
Statement of Work Overview Cont.

• Project Support activities include

23
REGULATORY REQUIREMENTS Portsmouth, Ohio

• The State of Ohio EPA Director's Final Findings
  and Orders
• Dated February 24, 1998, amended June 24, 2005
  and February 21, 2008
• Incorporates DUF6 Cylinder Management Plan
  regulatory requirements for activities involving
  DUF6
• DUF6 Cylinder Management Plan compliance subject
  to Ohio EPA oversight and inspection

24
REGULATORY REQUIREMENTS Portsmouth, Ohio

• US EPA TSCA Approval for Storage and Disposal of
  PCB Bulk Product Mixed Waste
• A subset of UF6 cylinders in storage contain
  greater than 50 ppm PCB in the surface paint
• TSCA exemption allows storage of cylinders in
  non-TSCA compliant storage areas
• Exemption incorporates regulatory requirements
  associated with surveillance and maintenance of
  the exempted storage areas and affected cylinders

25
REGULATORY REQUIREMENTSPaducah, Kentucky

• The Commonwealth of Kentucky Natural Resources
  and Environmental Protection Cabinet Agreed Order
• Executed October 2, 2003
• Requires DUF6 Cylinders to be managed in
  compliance with the approved Cylinder Management
  Plan For Depleted Uranium Hexafluoride (DUF6) as
  appended to the Agreed Order

26
15 Minute Break
27
Special Features of DUF6 RFP

• Section B - Supplies or Services and Price/Costs
  
• Two Contracts will be Awarded to the successful
  Offeror
• Type of Contract CPAF with zero base fee
• Transition period 3 months with zero fee
• Basic Term of the Contract is 57 Months
• Option 1 for Hot Functional Testing (HFT) for the
  Portsmouth Facility
• Option 2 for HFT for the Paducah Facility

28
Special Features of DUF6 RFP

• Section B Supplies or Services and Price/Costs
  (continued)
• Total Maximum Award Fee proposed shall not exceed
  10 of the total estimated contract costs
  (excluding transition cost)
• Allowability of Subcontractor Fee
• As provided in B.8
• If a Contractor is part of a teaming arrangement
  (as defined in FAR 9.6) the team shall share in
  the total available fee. Separate additional
  subcontractor fee is not an allowable cost under
  this contract for individual team members, or for
  a subcontractor, supplier, or lower-tier
  subcontractor that is a wholly-owned,
  majority-owned, or affiliate of any team member

29
Special Features of DUF6 RFP

• Section B Supplies or Services and Price/Costs
  (continued)
• Allowability of Subcontractor Fee cont
• The subcontractor fee restriction does not apply
  to members of the Contractors team that are
• Small business firms
• Protégé firms as part of an approved
  mentor-protégé relationship under the Section
  H.46 clause
• Subcontractors under a competitively awarded FFP
  subcontract, or
• Commercial items as defined in FAR 2.1

30
Special Features of DUF6 RFP

• Section B Supplies or Services and Price/Costs
  (continued)
• Fee Determination and Payment
• Fee determination will be based upon an Award Fee
  Plan (AFP)
• AFP will establish evaluation periods, fee
  bearing activities, and criteria
• AFP will be provided to the Contractor 30
  calendar days prior to the start of the
  evaluation period
• Payment of Fee will be subject to
• DEAR 952.223-76 Conditional Payment of Fee or
  Profit Safeguarding Restricted Data and other
  Classified Information and Protection of Worker
  Safety and Health (Jan 2004)
• FAR 52.246-5 Inspection of Services Cost
  Reimbursement (Apr 1984)

31
Special Features of DUF6 RFP

• Section F Deliveries or Performance
• Term of the Contract
• Mobilization and Transition up to 90 days from
  NTP
• Basic Term of the Contract is 57 Months
• Options 1 and 2 HFT for Portsmouth and Paducah
  Facilities the government has unilateral right
  to exercise either or both options
• Place of Performance is Portsmouth, OH, Paducah,
  KY and Lexington, KY
• Deliverables Table (Table F-1)

32
Special Features of DUF6 RFP

• Section H Summary of Special Contract
  Requirements
• H.1 Sales of Conversion Products and DUF6
  Inventory
• H.8 Key Personnel
• H.27 GFSI
• H.40 Site Services
• H.47 Subcontractor Flowdown Requirements

33
Special Features of DUF6 RFP

• Section H Summary of Special Contract
  Requirements
• H.49 Cooperation With Other Site Contractors
• H.50 Performance Guarantee Agreement
• H.51 Responsible Corporate Official
• H.52 Assignment of Existing Agreements and
  Subcontracts

34
Special Features of DUF6 RFP

• Section J List of Attachments
• J-5 DUF6 Services Contract Interface
  Requirements Matrix
• Section K Representation and Certification
• K.5 FAR 52.234-3 Notice of Earned Value
  Management System Post Award IBR (Jul 2006) -
  Submit documentation with the proposal that
  demonstrates compliance with EVMS guidelines or a
  plan for compliance

35
Special Features of DUF6 RFP

• Section L Instructions, Conditions, and Notices
  to Offerors
• L.21 Proposal Prep. Instructions
• Volume I Offer and Other Documents
• 1 Original, 5 copies, and 1 CD-ROM
• Volume II Technical Proposal
• 1 Original, 10 copies, and 10 CD-ROM
• Vol. II shall not exceed 125 pages
• No cost information
• Volume III Cost and Fee Proposal
• 1 Original, 8 copies, and 10 CD-ROM
• No page limitations
• page limitations are being reconsidered look
  for the upcoming amendment

36
Special Features of DUF6 RFP

• Section M Evaluation Factors for Award
• Basis of Contract Award
• DOE Intends to award two contracts to the
  responsible Offeror whose proposal is responsive
  to the solicitation and determined to be the best
  value to the Government
• Selection of the best value to the Government
  will be achieved through a process of evaluating
  strengths and weaknesses of each Offerors
  proposal in accordance with the technical
  evaluation criteria
• In determining best value, the technical
  evaluation criteria are significantly more
  important than the evaluated price

37
Special Features of DUF6 RFP

• Section M Evaluation Factors for Award
• Evaluation Criteria
• Technical Approach
• Business Management
• Key Personnel
• Past Performance
• Within this order of importance, Technical
  Approach is significantly more important than all
  other factors. Business Management and Key
  Personnel are equal and each factor is more
  important than Past Performance

38
Special Features of DUF6 RFP

• Section M Evaluation Factors for Award
  (continued)
• Summary Evaluation Criteria
• Technical Approach
• DOE will assess how well the approach
  demonstrates an understanding of and ability to
  optimize the requirements of the Statement of
  Work and conveys a high level of confidence in
  the offerors ability to perform successfully
• DOE will evaluate the Offerors Work Breakdown
  Structure, integrated critical path and the
  sequence of work activities to ensure a safe,
  efficient execution of work scope
• DOE will evaluate the sequence of work activities
  to determine if a safe, efficient execution of
  work scope is planned for the Operations
  Transition and Start-up Plan (OTSP)

39
Special Features of DUF6 RFP

• Section M Evaluation Factors for Award
  (continued)
• Evaluation Criteria (continued)
• Technical Approach cont
• DOE will evaluate the proposed approach and
  schedule for performance of the Hot Functional
  Testing Plan including the approach to move from
  Hot Functional Testing to partial conversion
  operations and conversion operations
• DOE will evaluate the proposed approach and
  schedule for conversion operations, the proposed
  quantity of DUF6 to be processed on an annual
  basis and over the term of the contract
• Business Management
• The DOE will evaluate how well the offerors
  organization and business systems support
  implementation of the Technical Approach proposed
  and provide control and accountability for
  contract performance

40
Special Features of DUF6 RFP

• Section M Evaluation Factors for Award
  (continued)
• Evaluation Criteria (continued)
• Business Management cont
• DOE will evaluate the ability of the offerors
  organizational approach and business systems to
  establish and maintain technical, schedule and
  cost baselines
• DOE will assess what level of contract
  performance support it can expect from the
  offerors corporate capability and the ease and
  frequency of its expected usage
• DOE will evaluate the relevant experience of the
  offeror and each of its major subcontractors

41
Special Features of DUF6 RFP

• Section M Evaluation Factors for Award
  (continued)
• Evaluation Criteria (continued)
• Key Personnel
• Written Information The offeror will be
  evaluated on the Key Personnel it proposes and
  considers to be essential to the successful
  accomplishment of the work being performed under
  the contract(s)
• Oral Presentation DOE will evaluate the Key
  Personnels understanding and performance in
  their respective positions, and as members of the
  offerors management team, observation of Key
  Personnel during oral presentations and response
  to the problem-solving exercise

42
Special Features of DUF6 RFP

• Section M Evaluation Factors for Award
  (continued)
• Evaluation Criteria (continued)
• Past Performance
• DOE will evaluate the quality of the offerors
  (including proposed subcontractors and other
  performing entities) past performance to
  determine the degree to which the past
  performance demonstrates the offerors ability to
  successfully perform the Statement of Work
• The DOE will evaluate the offeror's past
  performance as reported on prior relevant
  contracts, with emphasis on cost control and
  adherence to schedules

43

• Section H Provisions
• Special Contract Requirements

44
Clauses Applicable to Portsmouth, OH

• H.10 - Definitions Portsmouth, OH
• H.11 Workforce Transition and Employee Hiring
  Preferences Portsmouth, OH
• H.12 Employee Compensation Pay and Benefits
  Portsmouth, OH
• H.13 Special Provisions Applicable to Workforce
  Transition and Employee Compensation Pay and
  Benefits Portsmouth, OH

45
Clauses Applicable to Portsmouth, OH

• H.14 Workforce Transition and Benefits
  Transition Plans and Timeframes Portsmouth, OH
  
• H.15 Post-Contract Responsibilities for Pension
  and Other Benefit Plans Portsmouth, OH
• H.16 Labor Relations Portsmouth, OH
• H.17 - Workforce Restructuring- Portsmouth, OH

46
Clauses Applicable to Paducah, KY

• H.18 - Definitions Paducah, KY
• H.19 Workforce Transition and Employee Hiring
  Preferences Paducah, KY
• H.20 Employee Compensation Pay and Benefits
  Paducah, KY
• H.21 Special Provisions Applicable to Workforce
  Transition and Employee
• Compensation Pay and Benefits Paducah, KY

47
Clauses Applicable to Paducah, KY

• H.22 Workforce Transition and Benefits
  Transition Plans and Timeframes Paducah, KY
• H.23 Post Contract Responsibilities for Pension
  and Other Benefit Plans Paducah, KY
• H.24 Labor Relations Paducah, KY
• H.25 - Workforce Restructuring Paducah, KY

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Hiring Preferences

• Hiring Preferences (H.11(A) H.19(A))
• During the 6 month Workforce Transition Period
  following the Notice to Proceed
• After the transition period and throughout the
  entire contract performance period
• Any costs incurred by the Contractor as a result
  of the Contractors failure to comply with the
  hiring preferences as set forth in this Contract
  will be unallowable, unless such costs were
  incurred as the result of the Contracting
  Officers direction. (H.11(B) H.19 (B))

49
Sponsorship of UDS Pension Plan

• Within 90 days after issuance of the Contract
  Notice To Proceed, the Contractor shall become
  the sponsor of the UDS Pension Plan, and other
  existing benefit plans (or comparable successor
  plans if continuation of the existing plans is
  not practicable) including post retirement
  benefit (PRB) plans, as applicable, for
  Grandfathered Employees and retired plan
  participants, with primary responsibility for
  management and administration of these plans.
  (H.13(B)(1) H.21(B)(1))

50
Sponsorship of UDS Pension Plan

• Sponsorship Timing. Notwithstanding any other
  clause in this Contract, the Contractor shall
  ensure that it becomes the sponsor of the UDS
  Pension Plan and other existing benefit plans (or
  comparable successor plans if continuation of the
  existing plans is not practicable) including
  post-retirement benefit (PRB) plans, as
  applicable, for Grandfathered Employees no later
  than the date that the Contractor becomes the
  employer for Grandfathered Employees at both the
  Portsmouth and Paducah Gaseous Diffusion Plant
  Sites, and at the Lexington Office, so that that
  there is uninterrupted and continuous
  participation by Grandfathered Employees in the
  foregoing plan(s). (H.13(B)(3) H.21(B)(3))

51
H.1 - Sales of Conversion Products and DUF6
Inventory

• Product means any saleable material resulting
  from the DUF6 conversion process, including AqHF,
  CaF2 and uranium oxides.(H.1(a)(1))
• The DUF6 Contractor shall be responsible for the
  sale of any product as a sales agent for the
  Government. Title to any product shall remain
  with the Government until the product is sold.
  (H.1(b)(1))
• The Contractor shall provide assistance to DOE,
  as directed and authorized specifically by the
  Contracting Officer, to support or conduct sales
  of UF6 inventory consistent with the Secretarial
  Policy and DOE Excess Uranium Inventory
  Management Plan. (H.1(b)(2))

52
H.50 - Performance Guarantee AgreementH.51-
Responsible Corporate Official

• H.50 - If the Contractor is a joint venture,
  limited liability company, other similar entity,
  or a newly formed entity, the Contractors parent
  organization(s) or all member organizations shall
  guarantee performance of the contract as
  evidenced by the Performance Guarantee Agreement
  incorporated in the contract in Section J,
  Attachment J.12
• H.51 - Notwithstanding these joint and severable
  liability performance guarantee provisions, the
  Contractor must identify a single responsible
  corporate official who is at a level above the
  Contractor and will be accountable for contractor
  performance issues, for the Government to contact
  as necessary

53
Instructions to Offerors Cost Information
54
Instructions to Offerors Cost Information

• Requested Cost Information
• Instructions for Offeror Provided Costs and DOE
  Provided Costs (L.24(e)(1) and (2).
• Proposed costs by cost element, by fiscal year,
  by WBS to minimum level 5 if applicable and basis
  of cost estimate (L.24(e)(1)(i)-(iii), Section L
  Attachment L-4)
• Requested cost information required for all joint
  ventures, LLC members, or subcontracts valued at
  10 million or more
• Direct labor hour summary by labor category by
  WBS (Section L Attachment L-5)
• Waste Quantities and Cost Worksheet (Section L
  Attachment L-6)

55
Instructions to Offerors Cost Information

• Provided Cost Information
• DOE Provided Costs for selected activities
  (L.24(e)(2))
• WBS and WBS Dictionary (Section L Attachment L-7)
• Historical direct labor rate information for
  incumbent employees (Section L Attachment L-8)
• Historical fringe benefit rate information
  (Section L Attachment L-9)

56
Instructions to Offerors Cost Information

• Cost Assumptions L.24(e)(2)(iv)
• 90 day Mobilization and Transition Phase followed
  by 270 day Testing and Start-up Phase
• Product proceeds (the gross revenue obtained by
  the DUF6 contractor from the sale of DUF6 or DUF6
  conversion products) are offset by costs
  associated with the sale
• UOX and CaF2 quantities resulting from Conversion
  Operations are waste
• Non-reusable cylinders are waste

57
Instructions to Offerors Cost Information

• Cost Assumptions L.24(e)(2)(iv)
• The offeror shall assume the Integrated Program
  Management Support costs (WBS 1.03), which
  include the Lexington Office, are split 50/50 to
  the two contracts.
• For waste characterization, packaging and
  transportation, the Offeror shall assume use of
  both receiver sites identified in the Final draft
  Supplement Analysis for Location(s) to Dispose of
  the Depleted Uranium Oxide Conversion Product
  Generated from DOEs Inventory of Depleted
  Uranium Hexafluoride (DOE/EIS-0359-SA1 and
  DOE/EIS-0360-SA1) (SA), i.e., the Nevada Test
  Site and EnergySolutions facility in Clive, Utah,
  for waste disposal, according to the 50/50 split
  by volume of converted product.

58
Closing Remarks

• An important objective is to award without
  discussions to the Offeror that offers the best
  value to the Government
• Question period ends Friday, July 17th on the
  Final RFP
• Other than the questions received during the
  Conference and Site Tours, all other questions
  must be posted to www.emcbc.doe.gov/duf6 by July
  17
• Responsible Offerors should submit responsive
  proposals that comply with all requirements of
  the final RFP
• Provide your best terms from both a technical and
  cost standpoint in your proposal

59
Special Notice

• This Pre-Proposal Conference and Site Tours are
  for informational purposes only. All potential
  Offerors are cautioned that proposals must be
  based on the information provided in the Final
  Request for Proposal (RFP) and any amendments
  thereto
• In the event of any discrepancies between the
  information provided during this Conference and
  Site Tours, the Final RFP shall take precedence

60
This concludes the DUF6 Pre-Proposal Conference
Be back no later than 100 pm for the Paducah
Tour