The purpose of this modification is to incorporate the requirements for
Life Cycle Asset Management by making changes to Section C, Statement of
Work, and by adding Clause H.59 to the contract. The contract is modified
as follows:
1. SECTION C, STATEMENT OF WORK, paragraph C.2, MANAGEMENT AND
INTEGRATION WORKSCOPE, subparagraph B. MANAGEMENT SYSTEMS, (2)(a); delete
the second sentence: "The system shall implement DOE Order 430.1,
Life-Cycle Asset Management (LCAM), which covers all aspects of
the planning, acquisition, and disposal of DOE assets".
2. SECTION C, STATEMENT OF WORK, paragraph C.4, INFRASTRUCTURE,
subparagraph B. INFRASTRUCTURE OPERATIONS AND MAINTENANCE, (1); change
first sentence:
3. SECTION H, SPECIAL CONTRACT REQUIREMENTS, replace Clause H.59 "RESERVED"
with new Clause H.59, entitled LIFE CYCLE ASSET MANAGEMENT GRADED
APPROACH, with the following language:
This contract clause is applicable to all PHMC Major Subcontractors and
DynCorp.
| A. |
The contractor shall plan, acquire and dispose of DOE assets in a
cost-effective manner to meet the DOE mission. The contractor shall
use industry standards, and a graded approach, in applying these
requirements. FDH major site projects may define policies and
procedures for implementing this clause within their project or
program area. Major site projects are defined as the River Protection
Project (formerly the Tank Waste Remediation System), Facility
Stabilization, Waste Management, Spent Nuclear Fuels, Infrastructure,
HAMMER, and Advanced Reactor Transition. Future major projects may be
subject to life cycle asset management, as directed by the RL
Contracting Officer or RL Contracting Officer Representative. |
| B. |
The contractor shall use a process based on a graded approach for
physical asset acquisition that is an integrated, systematic approach
that shall ensure, but shall not be limited to, the following:
| (1) |
Use of a process tool, such as value engineering, to improve
efficiency and cost-effectiveness when analyzing physical asset
acquisition. |
| (2) |
Specification of the appropriate state, regional, or national
building codes to which physical assets shall be designed and
constructed. |
| (3) |
Consideration of maintainability, operability, disposition,
life-cycle costs, and configuration integrity in designs and
acquisitions. |
| (4) |
A project management system based on effective management
practices that is sufficiently flexible to allow for the size and
complexity of the project. For line item projects, the following
requirements are considered minimal:
| (a) |
Prior to receiving RL approval to commence conceptual
design, include the following in project planning
| (i) |
minimum technical functional
requirements |
| (ii) |
proposed cost and schedule
ranges, |
| (iii) |
preliminary environmental
strategy |
| (iv) |
identification of project
technical and organizational interfaces, and |
| (v) |
integration with other
projects and activities |
|
| (b) |
Prior to receiving RL approval to commence execution,
include the following in project planning:
| (i) |
project objectives |
| (ii) |
scope, schedule, and cost
baselines, including contingencies, |
| (iii) |
life-cycle cost analysis |
| (iv) |
preliminary safety assessment, |
| (v) |
project controls, including
baseline change control, change control thresholds, and
statusing, |
| (vi) |
verification of performance
criteria through test and evaluation, and |
| (vii) |
design alternatives |
|
| (c) |
Prior to operation, a plan for turnover of a facility shall
be prepared; verification of performance criteria through test
and evaluation shall be accomplished; and operational
readiness shall be verified. |
|
|
| C. |
The requirements in this paragraph C., in part, supplement the
contractor’s obligations to manage maintenance programs in
accordance with the applicable chapters of DOE Order 4330.4B. The
Contractor shall use a process based on a graded approach for the
operation and maintenance of physical assets that shall ensure, as a
minimum, the following:
| (1) |
The identification, inventory, and periodic assessment such as
Condition Assessment Surveys or an equivalent assessment program,
of the condition of physical assets in the maintenance program. |
| (2) |
The establishment of requirements, budgets, and a work
management system to maintain physical assets in a condition
suitable for their intended use. |
| (3) |
The preventive, predictive, and corrective maintenance to ensure
physical asset availability for planning use and/or proper
disposition. |
| (4) |
A configuration management process to ensure the integrity of
physical assets and system. |
| (5) |
The efficient and effective management and use of energy and
utilities. |
| (6) |
A method for the prioritization of infrastructure requirements. |
| (7) |
The management of backlogs associated with maintenance, repair,
and capital improvements. |
| (8) |
A method to ensure that prior to the completion of mission
activities (e.g., production, research, etc.) actions are
implemented to place the facility, systems and materials in safe
and stable conditions and to ensure hazards are identified and
known pending transfer or disposition. For facilities that have
already completed mission activities and are awaiting transfer or
disposition, ensure that actions are taken to eliminate or
mitigate hazards and provide adequate protection to workers, the
public and the environment. In both cases, actions shall be based
on an assessment of the remaining hazards at the time when mission
activities are completed or prior to transfer or disposition for
facilities that have already completed mission activities. The
actions shall include but not be limited to:
| (a) |
Identifying and characterizing all hazardous and radioactive
material and wastes remaining in system/facilities and
providing for their stabilization (if necessary), adequate
storage until they are removed from the facility, and (unless
otherwise agreed to prior to facility transfer) removal. |
| (b) |
Assessment and adjustment (if necessary) of the facility
authorization basis to ensure it continues to reflect
conditions in the facility pending disposition. |
| (c) |
Conducting surveillance and maintenance activities required
to maintain the facility and remaining hazardous/radioactive
materials and waste in a safe and stable condition pending
facility disposition. |
| (d) |
Identifying and allocating
resources needed to maintain safe and stable conditions pending
disposition. |
|
|
| D. |
The Contractor shall use a process based on a graded approach for
the disposition of physical assets that shall ensure, as a minimum,
the following:
| (1) |
Application, as appropriate, of guidelines
contained or referenced in DOE–STD–1120–98,
INTEGRATION OF ENVIRONMENT, SAFETY AND HEALTH INTO FACILITY
DISPOSITION ACTIVITIES. |
| (2) |
For execution of contaminated facility disposition, as a minimum
the following apply:
| (a) |
A method to ensure that deactivation, surveillance and
maintenance, and decommissioning activities are appropriately
planned, conducted, and documented in a manner consistent with
the guiding principles and core functions of the Department’s
integrated safety management and facility disposition
policies. The disposition process shall provide for:
| (i) |
The collection of baseline data to support a physical,
chemical, and radiological characterization, updated as
necessary to reflect changes in facility conditions during
the disposition process. |
| (ii) |
Surveillance and maintenance activities that correspond
with facility conditions, including changes resulting from
disposition activities. |
| (iii) |
(A method for identifying, assessing, and evaluating
alternatives for deactivating and/or decommissioning and
for selecting and documenting a preferred alternative. |
| (iv) |
An end-point process in deactivation and decommissioning
planning that identifies specific facility end-points and
activities needed to achieve those end-points. |
| (v) |
A method for detailed engineering planning and for plan
documentation to execute the preferred deactivation and/or
decommissioning alternative. |
|
| (b) |
The use of Non-Time-Critical Removal Action as the approach
for decommissioning, by using the tailored process negotiated
with the Environmental Protection Agency, with continued
Defense Nuclear Facilities Safety Board oversight to the
extent authorized by law. Non-Time-Critical Removal Action is
a type of response action recognized by the Environmental
Protection Agency as appropriate for addressing hazardous
substance threats where a planning horizon of six months or
more is appropriate. Removal responses, including
non-time-critical removals are the subject of 40 CFR 300.410
and 300.415. Under a signed agreement with EPA, the Department
uses a non-time-critical removal approach tailored for DOE's
decommissioning of contaminated facilities. That approach
comprises threat assessment; identification, analysis, and
documentation of decommissioning alternatives; opportunities
for public participation in the decommissioning decision; and
planning and performance of decommissioning activities. Under
the DOE/EPA agreement, regulator involvement in
decommissioning is determined locally. |
| (c) |
The development of a final report, or equivalent document,
for each deactivation and/or decommissioning project. Where
deactivation and decommissions are conducted as a single,
uninterrupted activity, only one final report, or equivalent,
is required. |
|
|
| E. |
In the acquisition, operation, maintenance, leasing and disposition
of physical assets, the Contractor shall ensure that all applicable
Federal, state, and local laws, regulations, and negotiated agreements
are followed, and that applicable safeguards and security as well as
integrated safety management requirements and policies are followed. |
4. Section J,Appendix C, DOE Directives:
5. All other terms and conditions remain unchanged.
