ML20205C166

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Performance Evaluation of Free State Reporting,Inc.Nrc Terminated Contract on 841026 Due to Contractor Failing to Meet Contract Quality Requirements by Not Delivering Transcripts on Time
ML20205C166
Person / Time
Issue date: 10/26/1984
From: Hagan T, Halman E
NRC OFFICE OF ADMINISTRATION (ADM)
To:
Shared Package
ML20205C107 List:
References
CON-NRC-17-84-327, FOIA-84-853 NUDOCS 8509200171
Download: ML20205C166 (4)


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U.S. NUCLEAR REGULATORY C0ttil5510N DETERMINATION AND FINDINGS AUTHORITY TO NEGOTIATE AN INDIVIDUAL CONTRACT Upon the basis of the following findings and detemination, the proposed contract described below may be negotiated without fomal advertising pursuant to the authority cf the Default clause, Article 11 of the General Provisions of Contract No. NRC-17-84-327.

Findings

1. Contract No. NRC-17-84-327 for NRC Headquarters requirements for stenographic reporting services in the Washington, D.C. metropolitan area was awarded to Free State Reporting, Inc., the low responsive, responsible bidder under IFB No. SECY-84-327.

Performance under the  :

fixed price requirements contract was for one year, May 16, 1984 through May 15, 1985, with an option to extend the tem of the contract one additional year. On October 26, 1984, the decision was made by NRC to teminate the contract because of the contractor's failure to t perfom its contractual obligations. specifically, for failure to make timely delivery of transcripts meeting the quality requirements of ,

the contract. The default temination notice was issued on and was effective October 26, 1984; all work orders previously issued for proceedings scheduled after October 26, 1984 were cancelled. Since NRC could not be assured of contractor's perfomance in the face of a temination for default, any deferral of the effective date for the temination was not considered to be in the best interests of the government.

2. In order to continue these essential services without interruption, the U.S. Nuclear Regulatory Corsnission (NRC) proposes to negotiate a contract with Ace-Federal Reporters, Inc., on a non-competitive basis for the remaining tem of the defaulted contract, through May 15, 1985. The estimated requirements for tha defaulted portion of the contract are unchanged, therefore, the statutory requirements for femal advertising for the reprocurement action are inapplicable (FAR 49.402-6 (b)). The interval between the decision to teminate for default and the effective date for temination of contract perfonnance, one day, makes use of fomal advertising or use of any competitive negotiated procedures to reprocure the required services clearly impracticable.

8509200171 850906 PDR FOIA BIRD 64-853 PDR For A- 84 -g Fl6 (

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3. In keeping with NRC's mission, the protection of the public health and safety in the utilization of comercial nuclear power, many i public hearings and adjudicatory proceedings are held as a part of i the decision making process. The subject matter to be recorded at the adjudicatory hearings and oral arguments before the Atomic

. Safety and Licensing Boards and Appeal Boards and meetings of the

! Advisory Comittee on Reactor Safeguards and other advisory committees is very complex and of a highly technical nature primarily in the field of nuclear reactors and nuclear energy. Equally demanding are meetings of the Comission recorded in compliance with the government in the Sunshine Act. The number of proceedings to be

reported may range as high as six per day most of which require

! delivery of transcripts by 8:15 a.m. the next day. The normal

! notice time to the contractor of a scheduled proceeding is 48 hours5.555556e-4 days <br />0.0133 hours <br />7.936508e-5 weeks <br />1.8264e-5 months <br />, '

however, the contractor may be required to have a reporter at the  ;

proceeding site on two hours notice. Any delays, errors, or other j

j fom of unsatisfactory perfomance jeopardize the operations of the l Comission. Any lapse or interruption of these services would j prevent or seriously impair NRC's ability to maintain official  !

records required by statute and place a severe burden on parties  !

appearing before the Agency or other users of nuclear related

services by postponement or delay of scheduled proceedings. In l sumary, not only is it essential that there be no interruption of these vital services, it is critical that all transcripts be i 4 complete and accurate and delivered in accordance with prescribed  !
delivery schedules.

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! 4. The nomal lead time for a competitive procurement using fomal I j advertising procedures is three to four months. Because of the i

! difficulties historically encountered at NRC in procuring stenographic  ;

j reporting services, i.e., protests and requests for documents under

the Freedom of Infomation Act, and the time required to detemine l the technical competency and responsibility of the prospective
contractor, a minimum of six months is considered necessary to i conduct a fully competitive procurement for these services. The t i

default of the imediate contract, as well as a prior contract for ,

these same services reaffims the need for sufficient time to fully '

evaluate every element of contractor responsibility. The period i remaining under the defaulted contract is less than seven months. r i To provide continuity of these essential services during the interim '

! period following the default and prior to award of a contract using fully competitive procurement procedures, award of a contract to '

Ace-Federal Reporters. Inc. is considered to be in the best interests of the government for the reasons stated in paragraph 5 below.

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5. The most recently completed procurement of stenographic reporting g services was conducted under IFB No. ASB-84-352. The solicitation covered NRC's requirements for stenographic reporting requirements l outside the Washington, D.C. area for a one year period beginning August 16, 1984 with an option to extend the tem of the contract one additional year. All bidders were required to submit a bid bond in the amount of 20 percent of the bid price and the r,uccessful

- bidder was required to submit a performance bond in the amount of

$100,000. Ace-Federal Reporters, Inc. was the only resronsive bidder under the solicitation. Following deteminatiN of responsibility and reasonableness of price, Contract No. NRC-10-84-352 in the amount of

$850,189.75 was awarded to Ace-Federal Reporters. *nc. on August 6,1984.

Review of pre-award survey documentation s% that Ace-Federal Reporters, j

f Inc. has personnel with the requisite operience to meet all NRC i requirements, from both a qualitative and quantitative perspective, and meet all other elements for detemination of responsibility. Ace-Federal is the only known contractor with the imediately available resources and recency of experience necessary to provide the required services with minimum technical risk. Since sufficient tima is not available

to negotiste a definitive contract, particularly as to price, a letter
contract will be negotiated to obtain a binding comitment and provide the necessary authority for the contractor to perfom. The opportunity for analysis of pricing data under a letter contract and subsequent negotiation will pemit repurchase at a price as reasonable as practicable considering the contract quality and delivery requirements.
6. Because of the temination for default proceedings and the compelling urgency to acquire continuing stenographic reporting services without interruption, a notice of intent to contract for these services on a non-competitive basis will not be forwarded for publication in the Comerce Business Daily.

Detemination Based on the foregoing findings, I hereby detemine that the proposed contract is for services defaulted under Contract No. NRC-17-84-327 for which use of fomal advertising is inapplicable. Further, competition by formal advertising or competitive negotiated procedures under the existing circumstances and conditions is not feasible or practicable.

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OCT 2 61984 gg/fgf hyv Date Timo' thy' F. Hag ri,AdministrativeCntractsBr)

Division of Con racts

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i As required by Part 15.210(c) of the Federal Acquisition Regulation and  !

PCN 84-01, dated January 11, 1984, I have reviewed and approve the above described non-competitive procurement and detemination of nonapplicability

, of Public Law 98-72. Further, based upon the above findings, I hereby detemine that a letter contract is the only contractual vehicle suitable for use in obtaining continuation of these urgent services and that no other contract type is suitable. '

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4 Date Edward L. Halman, Director Division of Contracts

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