oContract No. DE-NA0001942 Section J, Appendix A, Page i SECTION J APPENDIX A ...

52 Pages·2017·0.25 MB·English

oContractNo.DE-NA0001942
SECTION J
APPENDIX A
STATEMENT OFWORK
(0015, 0018,0075,0104)
SectionJ,Appendix A,Page i
oContractNo.DE-NA0001942
SECTION J
APPENDIX A
STATEMENT OFWORK
TTable of Contents
CHAPTER I. Objectives,Scope,and Requirements.........................................................................1
1.0 OBJECTIVE........................................................................................................................1
2.0 BACKGROUND.................................................................................................................2
2.1 The NNSA Mission......................................................................................................2
2.2 The NNSA Organization..............................................................................................2
2.3 Becoming an Enterprise................................................................................................2
2.4 Location of Performance..............................................................................................3
3.0 SCOPE.................................................................................................................................3
3.1 Mission.........................................................................................................................4
3.2 Merging of Operations..................................................................................................5
3.3 Scope and Financial Management................................................................................5
3.4 Enterprise Success........................................................................................................6
4.0 ADMINISTRATIVEANDTECHNICALREQUIREMENTS...........................................7
4.1 Integrated Safety Management (ISM), Integrated Safeguards and Security
Management (ISSM), Environmental Management System (EMS), and Quality
Assurance Systems (QAS).................................................................................................7
4.2 Work Authorization (WA) System...............................................................................7
4.3 Information Technology (IT)........................................................................................7
4.4 Governance...................................................................................................................8
4.5 Contractor Human Resources.....................................................................................10
4.6 Environmental Permits and Applications...................................................................10
4.7 Defense Nuclear Facilities Safety Board and Other Government Agencies Support
and Liaison.......................................................................................................................11
4.8 Interfaces with Other Site Users.................................................................................11
4.9 Privacy Act System of Records..................................................................................12
4.10 ....................................................................................................................... Cost Reduction
12
CHAPTER II. WorkScope Structure..............................................................................................13
1.0 PROGRAMS......................................................................................................................13
1.1 Defense Programs.......................................................................................................13
1.2 Other NNSA Work.....................................................................................................16
1.3 Work for Others/Other Reimbursable Work...............................................................19
2.0 FUNCTIONALSUPPORT................................................................................................19
2.1 GeneralSupport:.........................................................................................................19
2.2 Mission Support..........................................................................................................19
2.3 SiteSpecific Support...................................................................................................20
CHAPTER III. HumanResources...................................................................................................21
1.0 DEFINITIONS...................................................................................................................21
2.0 WORKFORCE TRANSITION..........................................................................................21
2.1 StaffingPlan...............................................................................................................21
2.2 Pay & Benefits............................................................................................................21
2.3 Incumbent Employees Right of First Refusal.............................................................22
2.4 Advance Understanding on Human Resources...........................................................22
SectionJ,Appendix A,Page ii
oContractNo.DE-NA0001942
3.0 COMPENSATION.................................................................................................................23
3.1 Total CompensationSystem...........................................................................................23
3.2 Cash Compensation....................................................................................................23
3.2.1Additional Compensation System Self-Assessment Data.......................................24
3.2.2 Proposed Major Compensation Program Design Changes......................................24
3.2.3 Annual Compensation Increase Plan (CIP).............................................................24
3.2.4Compensation Actions for All Key Personnel.........................................................25
3.2.5Incentive Compensation Plan..................................................................................25
3.2.6Assignments Outside of Normal Duty Station........................................................26
3.2.7Contractor’s Total Compensation System...............................................................26
3.2.8 Human Resources Plan............................................................................................26
3.3 Reports and Information: Compensation....................................................................26
4.0 BENEFITS.........................................................................................................................28
4.1 AssumptionofExistingPensionPlan.........................................................................28
4.2 Reports and Information: Benefits..............................................................................30
4.3 Workers’ Compensation.............................................................................................30
4.4 Pension Plans..............................................................................................................30
4.5 PensionManagementPlan..........................................................................................35
5.0 LABORRELATIONS.......................................................................................................38
6.0 WORKFORCEPLANNING..............................................................................................39
6.1 WorkforcePlanning-General....................................................................................39
6.2 Reductions in Contractor Employment –Workforce Restructuring...........................39
CHAPTERIV. Uranium ProcessingFacility(UPF) .......................................................................41
1.0 INTRODUCTION.............................................................................................................41
2.0 BACKGROUND...............................................................................................................41
3.0 ACQUISITIONSTRATEGY.............................................................................................41
4.0 ROLESOFTHEDESIGNAUTHORITYANDDESIGNAGENT.................................41
5.0 DESIGNCODEOFRECORD..........................................................................................40
6.0 FUNCTIONALORGANIZATION...................................................................................41
7.0 GOALSANDOBJECTIVES............................................................................................41
8.0 PROJECTDESCRIPTION................................................................................................42
9.0 PROJECTGOALSANDMILESTONES..........................................................................43
10.0 COSTREQUIREMENTS..................................................................................................44
11.0 PROJECTDELIVERABLES 5)........................................................................................44
SectionJ,Appendix A,Page iii
oContractNo.DE-NA0001942
CHAPTER I. Objectives,Scope,and Requirements
1.0 OBJECTIVE
The objective ofthis Contractis to obtainnuclearproductionservices to support National
Nuclear SecurityAdministration(NNSA) andbroadernational securityrequirements. This
objective includes obtainingservicesto meet theproduction requirements derivedfrom the
nuclear weapons stockpileplanupdated andreleasedbythePresident oftheUnitedStates
annually. TheContractor shall befullyresponsiblefor high-hazardenricheduranium,special
nuclear material (SNM),high-explosive andnuclear weaponassembly/disassemblyfunctions to
support NNSAStockpile Stewardship andManagement Program activities directedbytheOffice
ofDefensePrograms (DP).The Contractor shall function as thesingle integratingcontractor for
schedulingparts andperformingmateriallogisticswithintheNuclear SecurityEnterprise (NSE).
The Contractor shall provideasingle management structure andinterface totheGovernment for
integratingproduction across theNSE.
NNSA tritiumsupplymanagement functions arealso included in Contractor responsibilities if
this option is exercised. Furthermore,theContractorshall directlysupport theNNSA Offices of
NavalReactors andNuclear Non-Proliferationin additionto other Department ofEnergy(DOE)
offices. BeyondDOE/NNSA,theContractor shall provide uniqueservices to ongoingmissions
for other Government agencies orprivatelyowned organizations on anon-interference basis with
theDOE/NNSA workload.
This statement ofworkincludes twoContract Line ItemNumbers (CLINs). CLIN 0001 covers
themanagement and operationofPantex andY-12for theinitial five yearbase withsub-CLINs
for three option periods, transitionofSRTO,andinclusionofSRTO,respectively. CLIN 0002
coverstheUraniumProcessingFacility(UPF) at Y-12.
Inaddition to achievingPresidential goals outlinedin theApril 2010Nuclear Posture Review,
this Contractwill fullysupport theDOE andNNSAStrategic Plans andwill strengthen NNSA’s
vision for afullyintegrated andinterdependent Nuclear SecurityEnterprise (NSE),consistingof
all eightNNSA sites,byachievingthefollowingfourspecific objectives:
(i) Improvingperformance inthecompletionofnational securitymissions for nuclear
productionoperations;
(ii) Transitioningandmergingoperations at geographically-dispersed centers ofexcellence for:
nuclear weapon assembly/disassembly; enricheduranium;SNM; high-explosive
production; and,tritiumsupplymanagement underasingle Contract;
(iii) Reducingthecost ofperformingwork; and
(iv) Requiringactions thatsupport operationas anintegratedDOE/NNSA enterprise.
ThisContract does not affect thephysicallocationofnuclear productioncenterofexcellence
designations at therespective sites.
SectionJ,Appendix A,Page 1
ContractNo.DE-NA0001942
2.0 BACKGROUND
2.1 The NNSA Mission
The NNSA,establishedbyCongress pertheNNSAAct (Title XXXIIofthe
National Defense Authorization Act for Fiscal Year 2000, PublicLaw106-65)as a
semiautonomous elementwithinDOE,is responsible for themanagement and
securityof thenation’snuclear weapons, non-proliferation,andnaval propulsion
programs. It also respondsto nuclear andradiological emergencies intheUnited
States andabroad,and NNSA federal agents providesafeandsecure transportation
ofnuclear weapons, components andspecial nuclear materials.
2.2 The NNSA Organization
NNSA relies onManagement andOperating(M&O) Contractors to manageday-to-
day siteoperations andto adhere to its policieswhenoperatingits laboratories,
production plants,andother facilities in theNSE. Together,theM&O Contractors
implement NNSA’s all-encompassingStockpile StewardshipProgram managedby
Defense Programs thatincludesoperations associatedwithsurveillance,
assessment,maintenance, refurbishment,manufacture anddismantlement ofthe
nuclearweapons stockpileas well as research,development andcertification
efforts.
2.3 Becoming an Enterprise
Overall,theNNSAneeds to carryout its mission withinresearch,development,and
manufacturingorganizations that are safe,secure,integrated,efficient,and cost
effective. Work must bealignedwith requirements received from keycustomers in
amanner that strives to retaintheintellectual excellence andkeyinfrastructure
capabilities demanded bynational interests.
Throughout the1990s, theDOE/NNSA took stepsto consolidate to its current
configurationofthreenational laboratories,fourproduction plants,andanuclear
test site. InanevaluationoftheNSEcompletedin October2008,NNSA published
a SupplementalProgrammatic Environmental Impact Statement (SPEIS) that
analyzed alternatives fortransformingthecomplex into asmaller more efficient
enterprise that respondsto changingnational securitychallenges andensures the
long-termsafety, security,andreliabilityofthenuclear weapons stockpile. Two
Records of Decision (RODs) informedbythis SPEIS were published in December
2008.
WhiletheRODs look at transformingthephysical infrastructure,other initiatives
have beenundertakento improvemanagement andbusiness practices. Two
councils have beenformed: oneamong theContractor senior managementand
another amongthe federal sitemanagers. Themainfunctionofthesecouncils is to
improve theintegration andcommunicationwithintheenterprise. Also,
governance reform is anNNSA managementinitiative that focuses on developing a
partneringrelationshipbetweenthe federalteam and thesupportingM&O
Contractors.
SectionJ,Appendix A,Page 2
ContractNo.DE-NA0001942
2.4 Location of Performance
The three sites underthis Contract are:
2.4.1 Y-12National SecurityComplex (Y-12): Y-12is aGovernment-ownedsite
locatedin OakRidge,Tennessee, on approximately800acres withinthe
34,000 acreOakRidge Reservation. The NNSA facilities atY-12consist of
over350 buildings withapproximately5,800,000 gross square feet (gsf).
Another 1,730,000gsfarefacilities that are theresponsibilityoftheOffice
ofScience, Office ofNuclear Energy, ortheOffice ofEnvironmental
Management.
2.4.2 Pantex Plant (PX): PXisaGovernment-ownedsitelocatednearAmarillo,
Texas, on approximately10,500 acres atPantex Plant proper and1,100
acres ofdetached propertycalledPantex Lake,approximately2.5 miles
northeast ofthemainplant site. Inaddition,PXleases 5,800acres south of
theplant as asecuritybuffer and owns approximately1,526acres ofland
east ofFM2373 that provides an additional securitybufferandis beingused
primarilyforagricultureandlocation ofthePantex Wind Farm. The total
acreage underFederal control is approximately17,400 acres. The facilities
on thesiteconsist of638buildings comprisingapproximately3,110,000
gsf..
2.4.3 SavannahRiver Tritium Operations (SRTO): SRTO is withintheSavannah
River Site(SRS) whichis aGovernment-ownedEnvironmental
Management site locatedin south-central South Carolina andoccupies
approximately198,420acres in Aiken,Barnwell,and Allendale Counties.
SRSis approximately15 miles southeast ofAugusta,Georgia, and12miles
south ofAiken,South Carolina.The NNSA SRTO consists of
approximatelytwenty-nine acres centrallylocated withinthesite. The
SRTO facilityis comprisedof32buildings consistingof approximately
377,809 gsf.
3.0 SCOPE
ThisContract is comprehensive withanobjective toperform all necessaryoperational,
coordination,andmanagement functions at Y-12,PX,andSRTO (shouldthis option be
exercised) requiredto support NNSA andbroadernational securitymissions assignedto these
sites. This includes but is not limitedto all ongoingmissions andfunctions, as well as thosethat
maybeassignedduringtheterm oftheContract. Itfurther includes all infrastructure
management andmaintenance;informationtechnology; humanresource management including
critical skills recruitment andretention; environmental management; health, safetyandsecurity
systems; andpurchasing andother administrativesystems.
Intheexecutionofthis Contract,andparticularlyprogramintegration, theContractor shallmeet
rigorous qualityand reliabilitystandards essential for theU.S.nuclear deterrent; maintain
sufficient productioncapacityandproduceat rates definedin planningdocuments; and
implement flexibleproductionmanagement and execution processes to accommodateadynamic
national securityenvironment. The Contractor shall balanceriskmanagement andcostreduction
initiatives to provide increasedvalueto theGovernment. This applies both internallyto this
Contract andto improvingtheoverall cost efficiencyoftheNSE.
SectionJ,Appendix A,Page 3
ContractNo.DE-NA0001942
The Contractor shall befullyresponsible and accountablefor thesafeandsecure
accomplishment ofall work, whether performedbyits ownpersonnel orteam members,
includingsubcontractors. The Contractor shall beresponsible for planning andcoordinating
productionschedules;integrating,managingand executingtheprograms;supportingand
executinglargeandsmall projects; andcompletingoperations andotheractivities asdescribedin
this Statement ofWork.
3.1 Mission
The Contractor shall safelyandsecurelycompleteallmission responsibilities and
improve performance in thecompletionofnational securitymissions for nuclear
productionoperations and allother nationalsecuritymissions, as applicable. NNSA has
aWork BreakdownStructure (WBS) thatis discussed furtherin Section J,Appendix F,
Work BreakdownStructure. At aminimum, theContractor shall:
(i) Sustainthenecessaryworkforce andexerciseessential capabilities for:
nuclear weaponassembly/disassembly,enricheduranium andlithium, SNM,
high-explosiveproduction,andtritium supplymanagement centers of
excellence;
(ii) Maintainauthorizationbasis for high-hazardoperations;
(iii) Operate high-hazardchemical processingfacilities andsystemswithin
approvedauthorizationbasis;
(iv) Assure theavailability of corecapabilities,regardlessofstockpile size;
(v) Implement andoversee thenuclear explosiveandweaponssurety program to
include nuclear weapon/nuclearexplosivesafety,security anduse control;
(vi) Sustainandmodernize theinfrastructure;
(vii) Interface withandsupport other contractorsperforming workat any ofthe
sites;
(viii) Balance available resourcesto meetmission requirementsandinfrastructure
sustainment while maintainingsafe,secure,environmentally compliant and
responsive operations;and
(ix) Effectivelypartnerwithother Contractors withintheNSE to manage the
masterschedule forall production activities andberesponsiblefor the
executionof uranium,SNM,highexplosives, nuclear weapons
assembly/disassembly, dismantlement, andsurveillance functions in support
oftheStockpile StewardshipProgram.In performing this responsibility,
issues betweenthe NSE contractorswillbebroughtto Defense Programs
managementforresolution.
SectionJ,Appendix A,Page 4
ContractNo.DE-NA0001942
3.2 Merging of Operations
The Contractor shallmerge operations,in accordancewithSectionJ,Appendix D,
Merger TransformationPlan,at geographically-dispersedcenters ofexcellence for:
nuclear weapon assembly/disassembly; enricheduranium;SNM; high-explosive
production; and,tritiumsupplymanagement (ifexercisedbyoption)under asingle
Contract. At aminimum, theMergerTransformationPlanshall describe howthe
Contractor will:
(i) Manage merger ofoperationswithoutnegativelyimpacting mission;
(ii) Ensure criticalskills necessary to maintain capabilities;
(iii) Identify andstreamline redundanttechnical andbusiness operations acrossthe
sitesunder this Contract;
(iv) Incorporategovernance (SectionJ, AppendixA,ChapterI, 4.4); and
(v) Maintainrelationships and regulatory interfaces,and assume responsibility for
permitswithlocal,State andFederalentities,other DOE offices,and
stakeholders.
3.3 Scope and Financial Management
The Contractor shall support theDOE/NNSA Planning,Programming, Budgeting
and Evaluation(PPBE) process. InsupportingPPBE,theContractor shallprovide
financial data for Government systems, such as:
(cid:120) StandardAccountingandReportingSystem (STARS)
o STARS informationis providedunder theInstitutionalCost Reporting
Categories
(cid:120) iMANAGE
(cid:120) Enterprise PortfolioAnalysis Tool (EPAT)
o The EPAT informationshall becollected in accordancewiththeWork
BreakdownStructure (WBS) (seeSectionJ,Appendix F)
(cid:120) Facilities InformationManagement System (FIMS)
The Contractor shallmaintain financial cost reportingsystems to provide detailed
cost reports forcost,scope, and schedule fordirect and indirect costs for allwork
performed under this Contract. Thecost reportsshall includelabor costs,
leave/hours not worked, staff augmentation,fringe,pension,legacy,materials,
services-subcontractors,direct servicecenters,otherexpenses,capital,labor
category, andfull-time equivalent (FTE) resource usagefor all direct andindirect
costs and utilizecostbenefit analyses to determine theappropriatelevel ofsupport
functions andrisks. The Contractor shall provide NNSA transparencyinto those
financial cost reportingsystems and shall provide routine reports to allowNNSA
visibilityinto program andcostmanagementsupporting reports to external
sources (see SectionJ,Appendix O). The Contractor’s financial cost reporting
systemsshallsupporttheDOE STARS,iMANAGE,EPAT and support systems,
suchas FIMS,as well asother Government systems as theyaredevelopedand
implemented.
SectionJ,Appendix A,Page 5
ContractNo.DE-NA0001942
The NNSA willprovide theinitialcostinformation, FTE dataandscope
frameworkon theeffective date ofthe Contract. The Contractor shalldevelopa
baseline for allContractor directprogramsandindirectsupport costs in accordance
withDOEinstitutional costreportingcategories asfoundin SectionJ, Appendix
M, InstitutionalCost Reporting,andutilizetheWBS reportingstructure forfurther
program granularity,as applicableandasit continues to developwithinNNSA.
The baseline shall includecost,scope ofwork, andschedule withachangecontrol
process. Baselines willbe utilized for implementingthecostreductionfeatures
under this Contract.Thebaselinewillbereviewedandapprovedannually by the
ContractingOfficer.
The Contractor shallhavein place tools to: 1)managemission andindirect
changesin scope,cost,andschedule; 2)compareactual costsofworkperformed
(ACWP)to budgetedcostsofworkperformed(BCWP);3)accurately forecast
estimatedcoststo complete (ETC) andestimatedtotalcosts at completion(EAC);
and4)document deviations fromthebaselines describedabove in this paragraph
and,on atimely basis,notify theContractingOfficer ofsuch changes.The
Contractor shallnot make retroactive changesto recordspertainingto work
performedthat will change previously-reportedcosts,exceptforcorrectionof
errorsandroutine accountingadjustments andnot make retroactive changesfor
funding fluctuationsorrevisionsin EAC.
3.4 Enterprise Success
The Contractor shall participatewithNNSA andotherNNSA M&OContractors as
part ofan "enterprise organization"to evaluate,plan, developandimplement
strategic initiative activities thatoptimize missionandbusinessoperationsacross
theNSE.The goal oftheseinitiatives is to increase theefficiencyand cost
effectiveness from a business andmission perspective,to include:
(cid:120) Reducedoperational costs enterprise-wide,
(cid:120) More consistent workpractices andoperational processes,
(cid:120) Better pricing,better products, more timely delivery,
(cid:120) Reducedadministrative costs andleadtimes for both theContractor andthe
DOE/NNSA,
(cid:120) Greater standardization andinterchangeabilityacross theNSE;and
(cid:120) Increasedawardsto small businessentities.
NNSA expectsthese andother initiativesto resultin ashiftto anenterprisefocus,
basedon theContractor whopossesses themost expertise andexperience level
within theNSE.
The Contractor shallcooperate withNNSAandNSEContractorsin identifying
potential cross-NSE benefitsto be derivedfromimplementing commonpractices
and goalsacrosstheNSE in theareasof mission workloadandenterprise functional
support.
The ContractorandNNSAshall establishperformance incentives withperformance
measuresandtargetsfor strategic effortsthatresult in enterprise performance
improvementoverallfor theGovernment.
SectionJ,Appendix A,Page 6
ContractNo.DE-NA0001942
4.0ADMINISTRATIVEANDTECHNICALREQUIREMENTS
4.1 Integrated Safety Management (ISM), Integrated Safeguards and Security
Management (ISSM), Environmental ManagementSystem (EMS), and Quality
Assurance Systems (QAS)
The Contractor shall ensurethat ISM, ISSM,EMS, andQAS are integratedinto its
operations andthat its Contractor AssuranceSystem (CAS) reflectsContractor integrated
performancerelatedto thesesystems.
4.2 Work Authorization (WA) System
Specific workrequirements under this Contract will beestablishedannuallyandupdated
as neededbytheContractingOfficer in accordancewiththeapplicableDOEOrderand
theContract’sSection IClause entitled“DEAR 970.5211-1, Work Authorization.”
4.3 Information Technology (IT)
The NNSA seeksto optimizetheefficiencyofthe NSE throughtheNNSANetwork
Vision(2NV) that seeks toconsolidate ITinfrastructure/services and eliminate redundant
systems,to increase efficiencythroughmobilityand cloudcomputing,andto improve
businessprocesses to betterintegrateacross sites. Toaccomplishthesegoals,the
Contractor must evaluatefeasibilityofremovingredundant systems bycompletinga
careful examinationofexistingsystems and architecture across thesites todevelopa
single,integrated“to-be”vision thatutilizes thebest available technologies and
managementpractices from both Governmentand commercialsources toimprove and
achieve performanceexcellence, includingfiscal efficiency.With respect to production,
these efforts shallinclude,but are not limitedto, theimplementationofmulti-site,
integratedmanufacturingbasedinformationsystems that support weapons production,
specialnuclearmaterial (SNM)accountability,production schedulingand flow,
surveillance,weaponretirement,processknowledgearchiving,andpreservation of
productionandcertificationrecords. Desktopandback-officecomputingcapabilities
should becompatible withthoseusedbyNNSA entities. Back-officefunctions shall
include,but not belimitedto, payroll,finance,project management,humanresources,
etc.
The Contractor shalldeliver,within180days oftheBase Term,adraft “to-be”
architecture andinformation technologytransition planthatintegrates production and
businesssystems atPantex andY-12,andfurtherconsidersintegrationofSRTO as
directedbytheGovernment in amanner that is consistent withtheoverall enterpriseand
yields thebest valueto theGovernment. This planshallpresent acost andschedule
baseline against whichperformancecanbemeasured. Specifically,theplan must address
networkconsolidation to generate cost efficiencies,mobilityto replace manual processes
andfacilitateamobilework environment,datacenter consolidationto generateenergy
savings,and cloudcomputingto improve business agility. Inaddition,theplanmust
consider (wherefeasible)replacement oflegacyapplicationswithCommercial Off the
Shelf (COTS) systems,elimination ofredundant IT systems, and collectionofdata in
accordance withDOE orindustrystandardsto improve NSE interoperability.
SectionJ,Appendix A,Page 7