y3.A;?8':3//00VS »R REGj, ^ .^.^:.f I U.S. Nuclear Regulatory Commission Doing Business ^% With the U.S. Nuclear Regulatory Commission i^POSlTORY" Office of Small and Disadvantaged Business Utilization Contents Page INTRODUCTION ii OFFICE OF SMALL AND DISADVANTAGED BUSINESS UTILIZATION 2 DIVISION OF CONTRACTS 3 HOW TO GET STARTED 3 HOW TO FIND OUT ABOUT NRC'S NEEDS 3 Key NRC Personnel 3 The Commerce Business Daily 6 Procurement Automated Source System (PASS) 6 Posted Solicitations 6 AWARDS, AIDS, AND ASSISTANCE PROGRAMS FOR SMALL AND DISADVANTAGED BUSINESSES ... 6 Small Business Set-Aside Program 6 Labor Surplus Area Set-Aside Program 7 Purchases under $ 1 0,000 7 Women-Owned Businesses 7 Small Disadvantaged Business 8(a) Program 8 Subcontracting Opportunities 8 Subcontracting With DOE Laboratories 8 Ames Laboratory 9 Argonne National Laboratory 9 Brookhaven National Laboratory 9 Hanford Engineering Development Laboratory 9 Idaho National Engineering Laboratory 9 Lawrence Berkeley Laboratory 10 Lawrence Livermore National Laboratory 10 Los Alamos National Scientific Laboratory 10 Oak Ridge National Laboratory 11 Pacific Northwest Laboratory 11 Sandia National Laboratories 11 Savannah River Laboratory 11 HOW WE DO BUSINESS— THE PROCUREMENT AND FINANCIAL ASSISTANCE PROCESS 12 Federal Financial Assistance 12 The Procurement Process 13 Solicitation 13 Contents Page Noncompetitive Procurement Contracts 13 Unsolicited Proposals 13 Sole Source Procurement Contracts 14 Competitive Procurement 14 Formal Advertising 14 Negotiated Procurement 15 Evaluation Criteria 15 Funding Procurement Contracts 16 Fixed Price 16 Cost Reimbursement 16 NRC PROGRAM OFFICES 16 Office of Nuclear Reactor Regulation 16 Office of Nuclear Material Safety and Safeguards 17 Office of Nuclear Regulatory Research 17 Office of Inspection and Enforcement 18 GLOSSARY 18 Because of recent organizational changes within the agency, all references to the U.S. Nuclear Regulatory Commission's Office of Small and Disadvantaged Business Utilization (OSDBU) should read Office of Small and Disadvantaged Business Utilization and Civil Rights (OSDBU/CR) II Doing Business with the U.S. Nuclear Regulatory Commission Introduction ^^'^ guide has been prepared to provide clear, readily understandable information about how to do business with the Nuclear Regulatory Commission (NRC). Although the guide should prove helpful to all firms seeking business opportunities with NRC, it focuses primarily on the special needs of and opportunities for small and disadvantaged business firms. As a Federal agency, NRC participates in the full range of programs made available by Congress for small and disadvantaged business utilization. These programs apply to small and women- owned businesses, businesses located in labor surplus areas, and businesses owned and con- trolled by economically and socially disadvan- taged persons. At the present time, small and disadvantaged firms are providing NRC with a broad range of essential support, including technical assistance in the use of statistical methods, management information system analyses, socioeconomic research, computer EXHIBIT 1 W: OFFICE OF NUCLEAR MATERIAL SAFETY AND SAFEGUARDS OFFICE OF NUCLEAR REGULATORY RESEARCH July 1, 1982 1 maintenance services, and ADP systems devel- opment and operation. This guide also presents an overview of NRC's procurement and financial assistance programs. Finally, the guide describes NRC's organization, showing the primary responsibilities of the major program offices. Exhibit 1 is an organi- zational chart of the Nuclear Regulatory Com- mission and Exhibit 2 shows agency expendi- tures for a typical fiscal year. To help you determine whether the goods and services your firm provides are pertinent to NRC's needs, a few statements should be made concerning the mission of this agency. The Nuclear Regulatory Commission licenses and regulates the uses of nuclear energy for the purpose of protecting the public's health and safety andthe environment. Its mission is accom- plished by issuing licenses to build and operate nuclear power reactors and by authorizing the f- U.S. Nuclear Regulatory Commission Organization Chart ^^^^^l^^^^^^^^lS^>«M^:-:«.^^^^^^^^^^^^i^^^^ OFFICE OF THE SECRETARY OFFICE OF INSPECTION AND ENFORCEMENT REGIONAL OFFICES REGION I REGION II REGION III REGION IV REGION V PHILADELPHIA ATLANTA CHICAGO DALLAS SAN FRANCISCO ownership and use of nuclear materials. Be- cause it is a Federal regulatory agency, NRC makes rules and sets standards for its licensees. NRC also sponsors research to support its regulatory mission; consequently the scope of its work is technical-review oriented rather than product or hardware oriented. EXHIBIT 2 NRC Expenditures for a Typical Fiscal Year Program Technical Support Program Direction & Administration Material Safety &- Safeguards 8.4%^ 8.4% Research 46.1% Inspection & Enforcement JK' 13.8% /^\ k> Reactor ^ Regulation ^ 18.5% .:^^^^^^^^^ Office of Small The OSDBU is responsible for assisting small, and Disadvantaged Business Utilization (OSDBU) minority-owned and women-owned firms wish- ing to do business with NRC. Small firms located in areas of chronic unemployment are also encouraged to make their firm's capabilities known to NRC's OSDBU. Personnel in OSDBU are prepared to discuss with you the various preference programs NRC has available. They can also refer you to NRC technical personnel who may have a need for your firm's product or service. To obtain information from OSDBU, either call (301 ) 492-4665 or write to: Ofifice of Small and Disadvantaged Business Utilization U.S. Nuclear Regulatory Commission Washington, DC 20555 The NRC Division of Contracts directs and coordinates contracting and purchasing activi- ties for all NRC program offices, with the excep- tion of agreements with Department of Energy laboratories. In this capacity, the Division of Contracts routinely screens all procurement requests to determine whether such requests can be accomplished through OSDBU preference programs. The Division of Contracts also main- tains the NRC bidders' mailing list of firms with various occupational specialties. Firms on the list with the appropriate specialties receive, on a rotational basis, copies of the solicitation on tasks necessary to conduct the agency's business. Division of Contracts Firms wishing to appear on the NRC bidders' list should submit Form 1 29, "Bidder's Mailing List Application," copies of which are available from either OSDBU or the Division of Contracts, U. S. Nuclear Regulatory Commission, Washington, DC 20555 (see Exhibit 3). Interested firms should alsosubmit either a brochure describing their activities or a corporate capability state- ment. The corporate capability statement should describe the kind of products and services the firm provides. These statements sometimes include background information about key per- sonnel, a listing of past contracts with govern- mental and nongovernmental organizations, and brief descriptions of past and current projects. How to Get Started You may obtain information on NRC's current or future procurements from any of the following sources: The OSDBU can arrange for you to meet with NRC personnel whose needs may be pertinent to your firm's capabilities. The questions you have for NRC personnel in these meetings should be kept general since program officials are prohibited from making commitments or from giving advance information about specific anticipated purchases to potential suppliers. Procurement offices generally publicize planned purchases by placing announcements in the Commerce Business Daily (CBD). The CBD informs potential contractors about planned How to Find Out About NRC's Needs Key NRC Personnel The Commerce Business Daily EXHIBIT 3 BIDDER'S MAILING LIST APPLICATION INITIAL APPLICATION REVISION FORM APPROVED 0MB NO. 29-R0069 FitI in all spaces. Insert NA" in blocks not applicabi*. Type or print all entries. See reversa for instructions. TO lEnter name and addreii of Federal agenci/ to which form 1< nbmitted. Include ZIP Code) 1. APPLICANT'S NAME AND ADDRESS [Include county and ZIP Coilel 2. ADDRESS Wctude county and ZIP Code) TO WHICH SOLICITATIONS ARE TO BE MAILED (// different from item 1) TYPE OF ORGANIZATION (Check one) INDIVIDUAL ..1_ PARTNERSHIP NONPROFIT ORGANIZATION CORPORATION, INCORPORATED UNDER THE LAWS OF THE STATE OF 4. HOW LONG IN PRESENT BUSINESS NAMES OF OFFICERS, OWNERS. OR PARTNERS PRESIDENT TREASURER VICE PRESIDENT SECRETARY OWNERS OR PARTNERS 6. AFFILIATES OF APPLICANT [Names. location* and nature of affUiation. See definition on reverte) 7. PERSONS AUTHORIZED TO SIGN BIDS, OFFERS, AND CONTRACTS IN YOUR NAME (Indicate if agent) NAME OFFICIAL CAPACITY TEL. NO. (Inot. area mda) 8. IDENTIFY EQUIPMENT, SUPPLIES, MATERIALS, AND/OR SERVICES ON WHICH YOU DESIRE TO BID (See attached Federal agency't mfflemmtal listing and inetructione, if any) TYPE OF OWNERSHIP (See tieflnitions on reverse) MINORITY BUSINESS ENTERPRISE OTHER THAN MINORITY BUSINESS ENTERPRISE TYPE OF BUSINESS (See definitions on reverse) MANUFACTURER OR PRODUCER REGULAR DEALER (Type 1) rn REGULAR DEALER (Type t) SERVICE ESTABLISHMENT CONSTRUCTION CONCERN RESEARCH AND DEVELOPMENT FIRM n SURPLUS DEALER (Check this hoi if you are alto a dealer in turptut goode) 11. SIZE OF BUSINESS (See definitions on reverse) SMALL BUSINESS CONCERN* •// you are a small business concern, fltl in (o) and (b) : OTHER THAN SMALL BUSINESS CONCERN (a) AVERAGE NUMBER OF EMPLOYEES (Includ- ing atHHates) FOR FOUR PRECEDING CALEN- DAR QUARTERS (b) AVERAGE ANNUAL SALES OR RECEIPTS FOR PRECEDING THREE FISCAL YEARS 12. MANUFACTURING FLOOR SPACE (Square feet) WAREHOUSE 13. NET WORTH DATE AMOUNT 14. SECURITY CLEARANCE (// applicable, check highest clearance authorized) FOR TOP SECRET SECRET CONFIDENTIAL NAMES OF AGENCIES WHICH GRANTED SECURITY CLEARANCES (Include dates) KEY PERSONNEL PLANT ONLY THIS SfAti FOR use tY THE GOVCRNMCMT CERTIFICATION I certify that information supplied herein (Including all pages attached) Is correct and thet neither the applicant nor any person {Or concern) In aiiy connection with the applicant as a principal or officer, so far e« is known, Is now debarred or otherwise declared ineligible by any agency of the F«d«r»l Government from bidding for furnishing materials, supplies, or services to the Government or any agency thereof. SIGNATURE NAME AND TITLE OF PERSON AUTHORIZED TO SIGN (Type Or print) 129-105 STANDARD FORM 129 (REV. 2-77) Prescribed by GSA, FPR (41 CFR) 1-16.802 EXHIBITS INFORMATION AND INSTRUCTIONS Persons or concerns wishing to be added to a particular agency's bidder's mailing list for supplies or services shall file this properly completed and certified Bidder's Mailing List Application, together with such other lists as may be attached to this application form, with each procurement office of the Federal agency with which they desire to do business. If a Federal agency has attached a Supplemental Commodity List with instructions, complete the application as instructed. Otherwise, identify in item 8 the equipment, supplies and/or services on which you desire to bid. The application shall be submitted and signed by the principal as distinguished from an agent, however constituted. After placement on the bidder's mailing list of an agency, a supplier's failure to respond (submission of bid, or notice in writing, that you are unable to bid on that particular transaction but wish to remain on the active bidder's mailing list for that particular item) to Invitations for Bids will be understood by the agency to indicate lack of interest and concurrence in the removal of the supplier's name from the purchasing activity's bidder's mailing list for the items concerned. DEFINITION RELATING TO TYPE OF OWNERSHIP (See Item 9) Minority business enterprise. A minority business enterprise is defined as a "business, at least 50 percent of which is owned by minority group members or, in case of publicly owned busi- nesses, at least 51 percent of the stock of which is owned by minority group members." For the purpose of this definition, minority group members are Negroes. Spanish-speaking Ameri- can persons, American-Orientals, American Indians, American- Eskimos, and American-Aleuts. TYPE OF BUSINESS DEFINITIONS (See item 10) a. Manufacturer or producer — means a person (or concern) owning, operating, or maintaining a store, warehouse, or other establishment that produces, on the premises, the materials, supplies, articles, or equipment of the general character of those listed in item 8. or in the Federal Agency's Supplemental Com- modity List, if attached. b. Regular dealer (Type 1) — means a person (or concern) who owns, operates, or maintains a store, warehouse, or other estab- lishment in which the materials, supplies, articles, or equipment of the general character listed in item 8 or in the Federal Agency's Supplemental Commodity List, if attached, are bought. kept in stock, and sold to the public in the usual course of business. c. Regular dealer (Type 2) — in the case of supplies of particular kinds (at present, petroleum, lumber and timber products, machine tools, raw cotton, green coffee, hay, grain, feed, or straw, agricultural liming materials, tea, raw or unmanufactured cotton linters). Regular dealer — means a person (or concern) satisfying the requirements of the regulations (Code of Federal Regulations, Title 41. 50-201. 101(b)) as amended from time to time, prescribed by the Secretary of Labor under the Walsh- Healey Public Contracts Act (Title 41 U.S. Code 35-45). For coal dealers see Code of Federal Regulations, Title 41, 50-201. 604(a). d. Service establishment — means a concern (or person) which owns, operates, or maintains any type of business which is prin- cipally engaged in the furnishing of nonpersonal services, such as (but not limited to) repairing, cleaning, redecorating, or rental of personal property, including the furnishing of necessary re- pair parts or other supplies as part of the services performed. c. Construction concern — means a concern (or person) engaged in construction, alteration or repair (including dredging, exca- vating, and painting) of buildings, structures, and other real property. DEFINITIONS RELATING TO SIZE OF BUSINESS (See Item 11) a. Small business concern — A small business concern for the purpose of Government procurement is a concern, including its affiliates, which is independently owned and operated, is not dominant in the field of operation in which it is bidding on Gov- ernment contracts and can further qualify under the criteria con- cerning number of employees, average annual receipts, or other criteria, as prescribed by the Small Business Administration. (See Code of Federal Regulations, Title 13, Part 121, as amended, which contains detailed industry definitions and re- lated procedures.) b. Affiliates — Business concerns are affiliates of each other when either directly or indirectly (i) one concern controls or has the power to control the other, or (ii) a third party controls or has the power to control both. In determining whether concerns are independently owned and operated and whether or not affilia- tion exists, consideration is given to all appropriate factors in- cluding common ownership, common management, and con- tractural relationship. (See items 6 and 11.) c. Number of employees — In connection with the determination of small business status, "number of employees" means the average employment of any concern, including the employees of its domestic and foreign affiliates, based on the number of per- sons employed on a full-time, part-time, temporary, or other basis during each of the pay periods of the preceding 1 2 months. If a concern has not been in existence for 12 months, "number of employees ■ means the average employment of such concern and its affiliates during the period that such concern has been in existence based on the number of persons employed during each of the pay periods of the period that such concern has been in business. (See item 11.) • COMMERCE BUSINESS DAILY — The Commerce Business Daily, published by the Department of Commerce, contains infor- mation concerning proposed procurements, sales, and contract awards. For further information concerning this publication, contact your local Commerce Field Office. STANDARD FOBM 129 BACK (REV. 2-77) Procurement Automated Source System (PASS) Posted Solicitations procurement activities of the Federal govern- ment. Published Monday through Friday, the CBD lists, by product and service, contracting opportunities, subcontracting leads, contract awards, and other business opportunities related to procurement in the Federal government. The Commerce Business Daily is available on a subscription basis from the Superintendent of Documents, Government Printing Office, Wash- ington, DC 20402. Ordering information and rates may be obtained by calling (202) 783-3238. You can also register with the Small Business Administration's(SBA) Procurement Automated Source System (PASS). The purpose of PASS is to match Federal procurement requirements with the capabilities of small businesses or small disadvantaged businesses listed in the system. The system has significantly improved contracting and subcontracting opportunities for these firms. Registration with PASS is free and entirely voluntary. Applications are available from either the SBA or the NRC OSDBU. The mailing address and telephone number of the SBA office nearest you are also available from the NRC's OSDBU. Copies of all solicitations are posted for inspec- tion and copying at the NRC Public Document Room (PDR) at 1 71 7 H Street, NW., Washington, DC, and in the Division of Contracts Bid and Proposal Room, 2223 Air Rights Building, 4550 Montgomery Avenue, Bethesda, Maryland. Awards, Aids, and Assistance Programs for Small and Disadvantaged The Small Business Act of July 18, 1958 (P.L. 85-536) declares that the economic well being and security of the nation depend on the expansion of free competition which, in turn, requires that . special aid, protection, and assistance be given Busmesses to small businesses. Accordingly, NRC makes available the following range of assistance programs specifically aimed at small and dis- advantaged businesses. ■ Small Business Set-Aside Program One method provided by law to assist small businesses involves special "set-aside" pro- curements. In a set-aside procurement, either a single contract or an entire class of con- tracts (involving, say, all contracts for shuttle service) may be made available for compe- tition solely among small business firms. That is, only small businesses can compete for this type of set-aside contract. Announcementsfor set-aside procurements are advertised in the Commerce Business Daily. For complete information about the kinds of products and services NRC solicits on a set-aside basis, contactthe NRC OSDBU or Division of Contracts. Labor Surplus Area Set-Aside Program The purpose of the labor surplus area set- aside program is to direct selected Federal procurements to sections of the country with substantial unemployment or underemploy- ment. Contractors who participate in this program must either be located in an eligible labor surplus area or agree to perform a substantial portion of their work in an eligible area. The Department of Labor updates infor- mation regarding labor surplus areas annu- ally and makes this Information available to personnel in NRC's Division of Contracts. To make a labor surplus area award, NRC must first determine whether the bids or proposals submitted by eligible firms can be awarded at a reasonable price. Based on NRC's determination, one of two types of set-aside awards will be made: 1. solely for small businesses located in a labor surplus area, or 2. for any business firm, regardless of size, in a labor surplus area. Solicitations for labor surplus area awards appear in the Commerce Business Daily. Purchases Under $10,000 NRC purchases of products and services that cost under $10,000 must be reserved for small business firms, assuming that two or more firms submit prices that are competitive with the current market. Women-Owned Businesses NRC encourages contracts with women- owned businesses. NRC's affirmative action program includes incentives to promote busi- ness opportunities for women-owned busi- nesses, and collects and disseminates infor- mation in support of these firms. 8 ■ Small Disadvantaged Business 8(a) Program The purpose of this program is to assist small businesses owned and controlled by socially and economically disadvantaged persons to compete effectively for contracts with Federal agencies. The program works through the Small BusinessAdministration(SBA), which enters into contracts with Federal agencies for products and services and then sub- contracts noncompetitively for those products and services with firms certified as 8(a) by the Small Business Administration. Only firms receiving SBA certification are eligible to receive Federal contracts under this pro- gram. Eligible firms include but are not limited to those owned by Black Americans, Hispanic Americans, Native Americans, and Asian-Pacific Americans. NRC's 8(a) program is administered by the OSDBU. ■ Subcontracting Opportunities Contracts with the government that exceed $500,000 (or $1 million for public construc- tion projects), with few exceptions, must include detailed subcontracting plans for small and small disadvantaged businesses. Information regarding potential subcontract- ing opportunities can be found in the Com- merce Business Daily. This requirement applies unless the prime contractor is a small or disadvantaged business, the contract work will be performed outside the United States, the contract is for personal services, or unless no subcontracting opportunities are anticipated. Subcontracting with DOE Department of Energy (DOE) national labora- Laboratories tories perform a substantial portion of research and technical assistance work for NRC. Con- sequently, these labs provide a primary source of subcontracting opportunities for small and disadvantagedfirms. To obtain information about these opportunities, contact the Small and Dis- advantaged Business Specialist at the national laboratory whose needs most nearly suit your firm's product or service. You can contact NRC's Office of Small and Disadvantaged Business Utilization to obtain the name of the specialist at each national laboratory. Listed below are the names and addresses of DOE laboratories and a brief description of the principal research each conducts. Ames Laboratory, Ames, Iowa 5001 1 Ames Laboratory, operated for DOE by Iowa State University, conducts research princi- pally in material sciences centering on the preparation, purification, chemical charac- terization,and structural identification of new materials, followed by evaluation and inter- pretation of their chemical, physical, and mechanical properties. Other programs in- clude chemical analyses, pollutant identifi- cation, solar demonstration, and nuclear isotope and heavy ion studies. Argonne National Laboratory, Argonne, Illinois 60439 Argonne National Laboratory, Idaho Falls, Idaho 83401 Argonne National Laboratory, operated for DOE by the University of Chicago and the Argonne Universities Association, is princi- pally involved in reactor development, with other programs in basic energy sciences, energy and technology, high-energy physics, and biomedical and environmental research. Brookhaven National Laboratory, Upton, New York 1 1 973 Brookhaven National Laboratory, operated for DOE by Associated Universities, Inc., is involved in high-energy physics and research in basic energy sciences. About 60% of Brookhaven's effort is devoted to advanced energy systems, with lesser activity in envi- ronmental research, conservation, and the National Synchrotron Light Source Accele- rator (ISABELLE) currently under construc- tion at Brookhaven. Hanford Engineering Development Labora- tory, Richland, Washington 99352 Hanford Engineering Development Labora- tory, operated for DOE by the Westinghouse Hanford Company, concentrates on breeder reactor technology, with smaller efforts in fuel cycle research and development, mag- netic fusion development and technology, and nuclear research and applications. Idaho National Engineering Laboratory, Idaho Falls, Idaho 93401 Idaho National Engineering Laboratory, ope- rated for DOE by EG&G Idaho, Inc., and 10 Exxon Nuclear Idaho Co., Inc. does research on reactor safety, materials and fuels pro- cessing, waste management, liquid metal- cooled fast breeder reactor and geothermal energy research and development, naval propulsion reactors testing, and radiological and environmental research. Lawrence Berkeley Laboratory, Berkeley, Cali- fornia 94720 Lawrence Berkeley Laboratory, operated for DOE by the University of California, is prin- cipally involved in fundamental research in high-energy and nuclear physics and in the basic energy sciences. Other research is conducted on the fundamental biological processes in plants and animals, and in energy conservation. The laboratory operates several accelerators and directsthe National Resource for Computation in Chemistry. Lawrence Livermore National Laboratory, Livermore, California 94550 The Lawrence Livermore National Laboratory is operated for DOE by the University of California. Nuclear weaponsdesign accounts for approximately half the laboratory's effort and continues to be its primary responsibility. The program addresses current weapons requirements of the Department of Defense, exploration of new nuclear explosive con- cepts, a broad range of research and devel- opment, and the conduct of nuclear tests essential for exploration and design of nuclear explosives. Other Livermore Labora- tory programs include laser fusion technology development, laser isotope separation meth- ods, and biomedical and environmental studies. Los Alamos National Scientific Laboratory, Los Alamos, New Mexico 87545 The Los Alamos National Scientific Labora- tory is operated for DOE by the University of California. In the field of weapons, which constitutes about half the activities at Los Alamos, the laboratory is responsible for the development of nuclear warheads. Nonwea- pons work is concentrated on advanced nuclear reactor designs, the physics of con- trolled thermonuclear reactions, nuclear science research, and environment and safety. The laboratory also operates an 80C MeV proton accelerator. Oak Ridge National Laboratory, Oak Ridge, Tennessee 37830 The Oak Ridge National Laboratory is oper- ated for DOE by the Union Carbide Corpora- tion, Nuclear Division. The activities are largely directed toward four areas roughly equal in size: fission energy development, biomedical and environmental research, basic energy sciences, and magnetic fusion. In addition, there are growing programs in fossil energy and conservation. Oak Ridge houses the fast breeder reactor program and is responsible for heavy ion research and superconducting magnet test facilities. Pacific Northwest Laboratory, Richland, Washington 99352 Pacific Northwest Laboratory, operated for DOE by Battelle Memorial Institute, works principally in nuclearfuel cycle research and development. Other programs include envi- ronmental research and development, solar energy, and research in basic energy sciences. Sandia National Laboratory, Albuquerque, New Mexico 87185 Sandia National Laboratory, Livermore, Cali- fornia 94550 The Sandia National Laboratories are oper- ated for DOE by the Western Electric Com- pany. Sandia'scentral mission isthedevelop- ment of the nonnuclear portions of nuclear weapons. Sandia is also responsible for major programs in fossil, solar, and laser fusion. In addition, NRC sponsors major projects at Sandia in advanced reactor research and nuclear fuel cycle safety. Savannah River Laboratory, Aiken, South Carolina 29801 Savannah River Laboratory, operated for DOE by E. I. du Pont de Nemours and Company, provides developmental and tech- nical assistance in all phases of the nuclear fuel cycle: uranium resource evaluation, fuel fabrication, isotope production, reactor phy- sics and engineering, fuel reprocessing, waste management, environmental monitor- ing, and heavy water production. 12 How We Do Business- the Procurement and Financial Assistance Process Federal Financial Assistance An understanding of the procurement and financial assistance processes will help you to market your firm to NRC and could help you to avoid costly delays, mistakes, and other sources of frustration. Procurement procedures in the Federal government differ from procurement practices in private industry because they involve the spending of taxpayers' dollars. The Federal procurement process involves other considerations as well. Not only are Federal agencies obligated to obtain the best results at the most reasonable cost to taxpayers, but they must also carry out national security and social and economic goals established by Congress. As a result of these requirements. Federal agencies have created a formal procurement process that may seem cumbersome to business people. Before proceeding to an overview of the Federal procurement process, it will be helpful to clarify the difference between procurement contracts and financial assistance awards. The govern- ment uses procuiement contracts to acquire goods and services that are necessary for the government to carry on its day-to-day business. The government uses Federal financial assis- tance awards to provide financial support or stimulation for projects that will benefit the public. The NRC Federal financial assistance program provides financial assistance in the form of grants and cooperative agreements. These agreements support basic and applied research to advance the scientific knowledge applicable to nuclear power plant design, operation, siting, systems, performance, environmental concerns, and waste disposal. NRC seeks financial assis- tance applications from educational and non- profit institutions, state and local governments, and professional societies. Organizations receiving Federal financial assis- tance awards receive several advantages in pursuing their projects. Grants and cooperative agreements allow wide latitude for research because scientific project topics are initiated by grantees rather than by the government. Once underway, many grant projects proceed with little government involvement, as compared with cooperative agreements. You can obtain more information about the Federal financial assistance program by calling 13 the NRC Grant Officer at (301)492-4297. NRC also publishes application information for its assistance program in the Federal Register \usX prior to the beginning of each fiscal year. The procurement process begins when an NRC program office identifies a need and writes a statement of work describing that need in detail. The statement of work is then submitted to the NRC Division of Contracts where it is screened for possible inclusion in award programs for small and disadvantaged or women-owned businesses. Asolicitation notice isthe means by which NRC describes its objectives and requirementstothe business community. It contains the information essential to the business organization that is preparing its response, or proposal, to the solicitation. For the firm preparing the response, a careful and complete reading of the solicitation is essential to ensure a full understanding of the requirement described. Address questions con- cerning the solicitation to those persons named in the solicitation. Follow all instructions to the letter and make no assumptions without first verifying them. Above all, note carefully the time and place for submission of the response and allow sufficient time to ensure delivery before the time specified. To do otherwise may result in your response being eliminated from consideration, regardless of its merits. ■ Unsolicited Proposals An unsolicited proposal is a written offer to perform work submitted by an organization or individual solely on its own initiative and not in response to a request from NRC. NRC encourages the submission of unsolicited proposals for unique innovative approaches and ideas that may merit public support. Such proposals should not, however, include advertising material, commercial product offerings, capability statements, or other information not relevant to the innovative idea or approach being proposed. Those submitting unsolicited proposals should be aware that such proposals cannot be favorably considered when the project described dupli- cates either work already underway or planned. Also bear in mind that NRC has no obligation to make an award, even if the The Procurement Process Solicitation Noncompetitive Procurement Contracts 14 technical evaluation is favorable, because other priorities or funding limitations may arise. Unsolicited proposals should be sent to the following address: Operations Support Branch Division of Contracts U. S. Nuclear Regulatory Commission Washington, DC 20555 The Division of Contracts will notify you in writing that they have received your proposal. Your proposal will be protected as proprietary information as it undergoes NRC review. ■ Sole Source Procurement Contracts Any solicitation that results in the award of a contract that does not involve competition is considered a sole source procurement. Both procurement and financial assistance regu- lations and the laws upon which they are based place significant emphasis on the need for competition in Federal procurement contracting. Accordingly, competition for NRC awards is considered the norm, while sole source awards are the exception. Similarly, competition is encouraged in financial assis- tance awards unless restricted by law. Competitive Procurement The government uses two types of competitive processes for selecting contractors: formal advertising and negotiated procurement. ■ Formal Advertising Formal advertising has two goals: to gain for the government the benefits of full and free competition, and to give all qualified firms the same opportunity to bid competitively. There are four procedural steps in formal advertising. First, the agency prepares the invitation for bids (IFB); second, the IFB is announced \nXhe Commerce Business Daily; third, bids received in response to the IFB are opened, recorded, and tabulated; and fourth, a contract is awarded to the lowest bidder who is determined to be responsible and responsive to the terms of the solication. An Invitation for Bids (IFB) is used for soli- citing bids when detailed specifications con- cerning the product or service are known and can be precisely described. Hardware and general supplies are usually solicited through an IFB. Regulations governing IFB solicita- tions require that all specifications, terms, and conditions of the IFB must be accepted without qualification. All bids are publicly opened and recorded at the time and place specified in the solicitation. Awards are most often made based on price competition among bidders. Contracts awarded are usually for a fixed price. I Negotiated Procurement Formal advertising applies to procurements which involve firm, detailed specifications so that bids are evaluated and an award made based on price. Such detailed specifications are not always possible, however, particu- larly for NRC research and technical assist- ance activities. For activities like these, NRC conducts negotiated procurements. Thistype of procurement process accommodates the agency's need for flexibility in evaluating potential contractors and allows for crucial ifactors other than price to be carefully evalu- ated. These factors may include technical aspects of the proposal, delivery dates, per- formance and reporting requirements, and technical expertise. This process also allows for proposals to be improved during negotia- tions. Congress permits procurement by negotiation as an exception to the formal advertising method. To solicit a proposal for this type of procure- ment, NRC issues a Request for Proposal (RFP). An RFP often incorporates performance specifications rather than detailed design specifications. Evaluation criteria are the standards by which Evaluation Criteria NRC measures the proposals it receives. These criteria are included in the solicitation to provide offerors with information essential to their response. Therefore, the solicitation should be studied carefully before you make a decision about responding to it. Make sure that you or your firm has a reasona- ble chance of receiving an award by responding only to those solicitations that list criteria you can meet. Responding to solicitations with require- ments which you cannot fully meet is a waste of time and money. Funding Procurement Procurement contracts are commonly funded in Contracts one of two ways: fixed price or cost reimbursement. ■ Fixed Price In fixed price arrangements, a definite price for the product or service is agreed to before the contract is awarded. This price remains fixed for the life of the contract and is not ordinarily subject to any adjustment. The contract is then fully funded at the fixed amount. This type of funding arrangement provides the contractor with a keen incentive to control costs and perform efficiently. This type of contract imposes a minimum admin- istrative burden on both NRC and the contractor because detailed accounts of direct and indirect costs are not required. Fixed price contracts are generally used where reasonably clear designs or performance specifications are available and where fair and reasonable prices can be estimated and established. ■ Cost Reimbursement There are several variations of cost type con- tracts. The cost reimbursement type of con- tract provides for payment to the contractor of all allowable costs incurred during per- formance of the contract. This type of con- tract may also provide for payment of a fixed fee (or profit) to the contractor over and above the allowable costs incurred by the contractor over the course of the contract. This funding arrangement entails greater administrative effort than the fixed price con- tract because audits of the contractor's accounting records are required. Cost type contracts are ordinarily used for projects where work specifications cannot be defined exactly, as in research and devel- opment activities, and where performance uncertainties are so great that a fixed price contract would be inappropriate. NRC Program Offices NRC's principal regulatory functions are carried out by four major program offices: ■ Office of Nuclear Reactor Regulation (N R R) NRR's primary mission is to assure adequate protection of public health and safety and the 17 » environment in the design, siting, construc- tion, and operation of nuclear reactors. NRR is responsible for performing the safety, envi- ronmental and antitrust reviews of applica- tions received primarily from utilities for construction and operation of nuclear power and non-power plants. Changestooperating licenses for power and licensing effort are divided principally among the office's five divisions which (1 ) carry out project manage- ment functions, (2) perform detailed safety engineering and environmental reviews, (3) perform detailed performance-oriented eval- uations for nuclear plant systems, (4) perform operational, administrative, and people- oriented reviews for human factors safety, and (5) assure that basic safety and environ- mental policies, goals, and requirements are achieved by the regulatory and licensing process. Office of Nuclear Material Safety and Safeguards (NMSS) NMSS licenses and regulates all nuclear fuel cycle facilities and materials licensed under the Atomic Energy Act of 1 954, asamended. These licenses are associated with the pro- cessing, transporting, and handling of nuclear materials, inculding the review and assess- ment of their safeguards against potential threats, thefts, and sabotage. NMSS works closely with other NRC organizations in coordinating the waste management and safeguards program, and in recommending research, standards, and policy options necessary for the successful operation of these programs. Office of Nuclear Regulatory Research (RES) RES plans and Implements programs of nu- clear regulatory research and standards to support NRC's regulatory activities in nuclear reactor safety, safeguards, the nuclear fuel cycle, and environmental protection. These programs provide a comprehensive basis for NRC policies and programs for licensing review, inspection and enforcement, and other regulatory actions. The office directs the development of regulations, criteria, guides, standards, and codes for all stages of reactor and production and utilization facili- ties, for the protection of the health and 18 safety of the public and workers during possession, use, transfer, and disposal of nuclear materials, and for the safeguarding of nuclear materials and facilities. Office of Inspection and Enforcement (IE) IE inspects nuclear facilities and materials licensed by NRC to determine compliance with license provisions and to identify con- ditions that may adversely affect the protec- tion of nuclear materials and facilities, the environment, or the health and safety of the public. Glossary Acquisition - The acquiring by contract, with appropriated funds, of property or services by the Federal Government and for its direct benefit or use through purchase, lease, or barter, whether the property or services are already in existence or must be created, developed, demon- strated, and evaluated. Acquisition includes such related functions as determinations of the particular agency need, solicitation, selection of sources, award of contracts, contractfinancing, contract performance, and contract administra- tion. Assistance - A relationship the principal pur- pose of which isthetransfer of money, property, services, or anything of value to a recipient in order to accomplish a public purpose of support or stimulation authorized by Federal statute ratherthan of acquisition by purchase, lease, or barter of property or services for the direct benefit or use of the Federal Government. Award - Any instrument, signed by a contract- ing officer, providing NRC funds or other re- sources to an offeror, that permits expenditure of such NRCfundsor useof such NRC resources. Contract - A legal instrument which defines the relationship between the Government and a contractor whenever the principal purpose of the instrument is acquisition by purchase, lease, or barter of property or services for the direct use of the Government. Contracting Officer - An official designated to enter into or administer contracts and assist- ance agreements and make related determina- tions and findings. Cooperative Agreement - An assistance instru- ment used when substantial involvement is 19 anticipated between the Federal Government and the State or local government or other recip- ient during performance of the contemplated activity. Cost-Reimbursement Type Contracts - A type of contract providing for payment to the contrac- tor of allowable costs incurred in the contract performance, to the extent prescribed in the contract. Deliverable - A report or product that must be delivered to satisfy contractual requirements. Fixed-Price Type Contracts - Contracts that provide for a firm price or, under appropriate circumstances, for an adjustable price for the supplies or services being procured. Government Property - Equipment and facili- ties furnished by the Government for use by a contractor or recipient, or acquired by a contrac- tor or recipient at Government expense for use during the performance of a contract or assist- ance agreement. Grant - An assistance instrument used when little Federal Government involvement is antic- ipated in the performance by the recipient. Grant Officer - A contracting officer who con- tractually obligates the Government by award- ing grants. Small Disadvantaged Business - A small busi- ness concern which is at least 51 percent owned by one or more socially and economically disadvantaged individuals; or, in the case of any publicly owned business, at least 51 percent of the stock of which is owned by one or more socially and economically disadvantaged indi- viduals and whose management and daily busi- ness operations are controlled by one or more such individuals. Solicitation Instrument - A formal document which elicits proposals for acquisition or finan- cial assistance awards. Solicitation instruments used by NRC are IFB and RFP. Subcontract - An agreement or arrangement between a contractor/recipient and any person in which the parties do not stand in the relation- ship of an employer and an employee. Technical Direction - The direction or guidance of the scientific, engineering, and other techni- cal aspects of a project, as distinguished from the administrative and business management aspects. NUREG/BR-0045 UrJIVERSITV OF FIORIDA ■ 1 1 3 1262 08864 8513 1