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COMMERCE BUSINESS DAILY ISSUE OF JULY 31,1995 PSA#1399

Los Alamos National Laboratory, P.O. Box 990, Sourcing & Special Projects Office, P274, Los Alamos, New Mexico, 87545

F -- RADIOACTIVE LIQUID WASTE TREATMENT FACILITY Contact Mr. Eppie Trujillo, (505) 667-6696 or David M. Jones, (505) 667-9285. The Los Alamos National Laboratory (LANL) intends to release a Market Survey/Request for Information (RFI). This RFI will provide an information database which will be used to consider potential offerors and facilitate expressions of interest (EOI) in the potential business opportunity summarized below. BACKGROUND - LANL proposes a Radioactive Liquid Waste Treatment Facility (RLWTF) to manage the radioactive liquid waste currently generated at LANL. One of the major objectives of the RLWTF Project is to conceive, develop, design, construct, and operate a treatment system. The system functions include: 1) collection of radioactive liquid waste (RLW) from approximately 85 influent points and over 100 generators (note that approximately 85% of the total waste comes from only 5 generators); 2) processing the RLW; and 3) immobilization of transuranic (TRU) and low level (LL) secondary waste streams. (Note that temporary storage of the immobilized TRU secondary waste streams may be necessary at LANL until a permanent repository is available). The objective of this project is to treat RLW for the next forty years in support of Department of Energy (DOE) and LANL missions. Historically, LANL has designed, implemented, and operated waste treatment systems in-house. In the interest of substantially lowering the cost of treating waste, LANL is investigating a privatization approach. LANL is considering a competitive fixed price contract award to procure waste treatment services for the RLWTF system functions. DESCRIPTION OF BUSINESS OPPORTUNITY - The competitive price solicitation would be based a pay per unit of waste. The contractor would design and build the treatment facility(ies) with private sector funds, obtain regulatory clearances, operate the facility(ies) to produce treated waste end products meeting LANL specification requirements, and possibly decontaminate and decommission the processing equipment and facility(ies). The vendor(s) would bear all of the up-front costs for bringing the facility(ies) into fully operational status (building, equipment, permitting, etc.) and then operate the facility(ies) to treat all of LANL's RLW. LANL proposes not to make any payments until treated waste end products meeting specification requirements are produced. Treated waste would be inspected to assure specification conformance before payment would be made. LANL does not anticipate that the traditional DOE self-regulation approach to safety and environmental oversight will apply to this project. Due to the radiological hazard of processing TRU and LL radioactive liquid waste, and in the context of direct private ownership and control of operations and facilities, it is anticipated that the Nuclear Regulatory Commission (NRC) would be the licensing agency. It is anticipated that the environmental issues/permitting would be controlled by the state of New Mexico and the Environmental Protection Agency (EPA). Work safety would be regulated under the Occupational Safety and Health Act (OSHA). It would be the responsibility of the selected vendor(s) to secure and comply with all licensing, permitting, and compliance activities. LANL does not intend to oversee or inspect facilities during construction or operation for regulatory compliance since this would be the responsibility of the contractor and the appropriate regulatory agency. SPECIFIC INFORMATION SOUGHT BY LANL - LANL is interested in getting feedback from interested vendors on the following: 1. Which function(s) of th RLWTF would a vendor be interested in performing under the proposed agreement and why? 2. Should the RLWTF be constructed on DOE property or should/could the facility(ies) be sited on private property? Views on either or both scenarios would be appreciated. 3. What specific information, terms, conditions, and other assurances would a vendor view as necessary for a fixed price, pay for treated waste end product for one or more functions of the RLWTF? 4. What size facility(ies) should be attempted under the proposed approach (pilot, module of full scale, full scale)? 5. What information on regulatory standards, permits, or regulations would be needed for vendors to participate in a competitive fixed price procurement? 6. Intersted firms should state their willingness and ability to borrow funds to construct, equip, start-up and operate plant and be paid when treated waste end products meeting specification requirements are produed. What assurances or guarantees would be required from LANL to enable a vendor to obtain financing to cover the costs of design, construction, and start-up of a facility(ies)? 7. LANL would like to have vendor views on the terms and conditions for which a contract may be terminated, either by the vendor or LANL. For example, if the vendor is not able to provide treated waste end product tht meets specification requirements or that meets the specification but not the schedule, what impact on compensation would a vendor expect? 8. What are vendor views on indemnification recognizing that DOE is moving in the direction of treating the RLWTF facility(ies) in a manner consistent with commercial facilities? 9. The proposed approach may or may not require the integration of multiple vendors responsible for separate functions of the RLWTF. Should it become necessary to arbitrate differences or alter specifications, LANL would be responsible for making such determinations in consultation with affected vendors in a predetermined time frame. Vendors views are requested on this approch. 10. There is considerable technical/regulatory uncertainty in collecting and treating RLW and over time it may be necessary to alter contract waste input or output specifications. LANL prefers to set forth terms and conditions under which a change could be implemented, service fee schedules could be changed if appropriate, and termination liabilities could be established for both the vendor and LANL. Vendor views are requested on this approach. 11. LANL requests background information on the vendors experience in dealing with similar hazards and/or radioactive wastes. Information is also requsted on th vendors gross annual revenues. 12. Vendors may submit any other information which is considered to be pertinent or relevant to the proposed approach. 13. Vendors should identify all Code of Federal Regulations, state of New Mexico, and any other regulations that may apply to the design, construction, and operation of the proposed facility. LANL recognizes that interested parties will require additional detailed technical information on wastes, regulatory standards, performance specifications for the waste streams (input) and products for each system function, and other relevent information. To receive an information package, which will include, 1) description of the Influent Design Basis, 2) assumptions about regulations, 3) general specifications on waste products, 4) required milestones and other informtion, and 5) safety information document: please submit a written request to Los Alamos National Laboratory, ATTN: Eppie Trujillo, M/S P-274, PO Box 990, Los Alamos NM 87545 or FAX the request to (505) 665-5135 ATTN: Eppie Trujillo. Requests for information packets must be made within 14 calendar days from the date of this publication. LANL has not made a final commitment to procure the stated requirements. This request for an EOI should not be construed as a commitment or authorization to incur any cost in anticipation of a requirement. This determination will be made subsequently bases in part on the response of potential vendors. (208)

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