ML24151A381

Letter from R.Yalen Chief, Environmental Protection Unit, Department of Justice to J.Lux, Cimarron Environmental Response Trust Regarding Request for One-Time Waiver of Section 3.2.5 of Trust Agreement Addressed in Letter, Dated April 1, 2

ML24151A381
Person / Time
Site:	07000925
Issue date:	05/29/2024
From:	Yalen R US Dept of Justice (DOJ)
To:	Lux J Cimarron Environmental Response Trust, Office of Nuclear Material Safety and Safeguards
References
Download: ML24151A381 (1)

Text

[Type text] U.S. Department of Justice

United States Attorney Southern District of New York

86 Chambers Street New York, New York 10007

May 29, 2024

By Email ( jlux@envpm.com)

Jeff Lux Project Manager Environmental Properties Management, LLC Cimarron Environmental Reponse Trust 9400 Ward Parkway Kansas City, MO 64114

Re: Cimarron Environmental Response Trust One-Time Waiver of Section 3.2.5 of Trust Agreement

Dear Jeff :

I am writing, on behalf of the United States, the U.S. Nuclear Regulatory Commission, and the Oklahoma Department of Environmental Quality to respond to the April 1, 2024 request of Environmental Properties Management, LLC (EPM), trustee of the Cimarron Environmental Response Trust (Trust), for a waiver of the competitive bidding requirement of Section 3.2.5 of the Trust Agreement to allow the Trust to retain Veolia Nuclear SolutionsFederal Services

( VNSFS) to perform fabrication, testing, installation and startup services for the groundwater treatment and waste processing system at the Cimarron site. We agree to waive the competitive bidding requirement in this instance, solely with respect to the provision of such services by VNSFS to provide these services.

Section 3.2.5 provides, in relevant part, Except forarchitectural services and engineering services, the Trustee shall use competitive bidding to select the most suitable contractor for any work on matters to which the Cimarron Trust Federal Environmental Cost Account or the Cimarron Standby Trust Fund applies, and that is not carried out by the Trustee.This requirement is intended, in general, to ensure that the Trust receives qualified, cost-effective services from contractors.

In this instance, EPM advises us that the VNSFS has previously provided testing and design services related to the development of the groundwater treatment and waste processing facilities.

Now that fabrication, testing, installation, and startup of the facilities is required, EPM proposes to award VNSFS, without competitive bidding, a contract for those services. EPM explains:

Due to VNSFSs extensive experience on the Cimarron project, including design of the facility that will house the groundwater treatment and waste proce ssing systems, EPM proposes to direct award, without competitive bidding, a contract for equipment Page2

provisioning services to VNSFS. EPM will require VNSFS to competitively bid the subcontracts they will award for equipment component procurement and system fabrication and assembly and present the competitive bidding results to EPM [to]

demonstrate best value to the Trust. This equipment provisioning contract approach benefits the Trust by reducing the potential for additional treatment and waste processing facility design modifications to be required following award of the equipment provisioning scope. Such modifications would increase costs and potentially cause schedule delays.

Because VNSFS is the certifying engineer of record for the groundwater treatment and waste processing facility, they are uniquely qualified to provide an equipment design and procurement approach that minimizes potential conflicts with the facility design. In addition, because of VNSFSs experience on the project, now spanning several years, they are well versed in project requirements and uniquely qualified to provide technical support duringremediation system startup.

EPM concludes:

Based on these factors, EPM has concluded that the equipment procurement approach that provides best value to the Trust is to direct award equipment provisioning to VNSFS while requiring VNSFS to competitively bid their subcontracts for equipment procurement and system fabrication and assembly of the equipment units.

Under the specific circumstances presented here, we agree that it is appropriate to award VNSFS the contract without competitive bidding.The circumstances include VNSFSs unique experience with the design of the system; the potential costs associated with bringing on a new contractor that was not involved in system design; and the requirement that VNSFSs subcontractors be competitively bid.

Although by this letter we are waiving the competitive bidding requirement, the selection and use of VNSFS as contractor remains subject to all other applicable provisions of the Trust Agreement, including the separate requirement of Section 3.2.5 that the Trust obtain Lead Agency approval of contractors and their work plans and the requirement of Section 3.2.3 that the Trust only expend funds on Environmental Actions that have been approved by the Lead Agency, after consultationwith the Non -Lead Agency if consultationis requested, in a budget. In the courseof theseadditional approvals,the Lead Agency is free to conside r VNSFSs qualifications and rates, amongother factors itmay deem relevant.

This waiver of the competitive bidding requirement of Section 3.2.5 is limited to the performance by VNSFS of fabrication, testing, installation, and startup of groundwater treatment and wasteprocessing systems.

Page 3

If you have any questions, pleaselet me know.

Yours truly,

DAMIAN WILL IAMS United States Attorney

By:

ROBERT WILL IAM YALEN Chief, Environmental Protection Unit (212) 637-2722

cc: Alan Tenenbaum, National Bankruptcy Coordinator, ENRD U.S. Department of Justice

JaneMarshall, Director, Div. of Decommissionin g, Uranium Recovery, & WasteProg rams, James Smith, Senior Project Manager,

Angela Coggins, Senior Attorney, U.S. Nuclear Regulatory Commission

Lee Dooley, Environmental Attorney, Christopher Robinson, Environmental Attorney, J. Paul Davis, Environmental Program s Specialist, Rachel Miller, Environmental Programs Specialist, Oklahoma Department of Environmental Quality