The United States Department of Energy, National Nuclear Security Administration (NNSA), Office of Business Services intends to negotiate a sole source contract with the Regents of the University of California (UC), Oakland CA, under the authority of 41 U.S.C. 253 (c) (1) and pursuant to FAR 6.302-1. This action is a 5 year service contract for the administration of the Los Alamos National Laboratory (LANL) and Lawrence Livermore National Laboratory (LLNL) "retained segment" pension fund including submittal of required reports. The Office of Business Services anticipates that this effort will be available only from the UC and no other supplies or services will satisfy agency requirements. It is anticipated that the contract will be awarded to UC because it is the sole responsible source available to manage and administer the University of California Retirement Plan (UCRP) for certain former employees of the UC at Los Alamos National Laboratory (LANL) and Lawrence Livermore National Laboratory (LLNL) and their eligible beneficiaries. The work described in the attachments cannot be performed by any entity other than UC unless the government expended considerable legal and actuarial expenses to remove the interests of the former UC employees at LANL and LLNL from the UCRP and subsequently established a private sector pension plan that provides the same benefits as the UCRP. The applicable North American Industry Classification System (NAICS) code for this acquisition is 525110. The UC managed and operated LANL for the Department of Energy pursuant to Contract W-7405-ENG-36 from January 1, 1943, until May 31, 2006. UC also managed and operated LLNL for the Department of Energy pursuant to Contract W-7405-ENG-48 from September 2, 1952, until September 30, 2007. NNSA awarded Los Alamos National Security, LLC (LANS), a limited liability corporation, the contract to manage and operate LANL and LANS assumed operations of LANL on June 1, 2006. NNSA awarded Lawrence Livermore National Security, LLC (LLNS), also a limited liability corporation, the contract to manage and operate LLNL and LLNS assumed operations of LLNL on October 1, 2007. During the time that UC operated LANL and LLNL (Laboratories) the employees at the Laboratories were UC employees and participated in the UCRP. The UCRP is a governmental defined benefit plan under the Internal Revenue Code section 414(d) that was established for employees of a state entity, the University of California. After LANS and LLNS (Contractors) were awarded the respective contracts, but before the Contractors assumed full responsibility for operation of the laboratories, the Contractors presented UC employees with the choice to 1) remain in the UCRP as terminated vested participants or 2) participate in a newly established private sector defined benefit pension plan that was designed to offer the same accrued benefits, to the extent practicable given the rules that apply to private sector plans, that were offered under the UCRP. Employees who elected to remain in the UCRP as terminated vested participants in the UCRP as well as retirees from the Laboratories under the UCRP, eligible beneficiaries and other former laboratory employees who have a terminated vested interest in the UCRP comprise the finite universe of UCRP participants whose assets and liabilities are calculated separately from the rest of the participants in the UCRP pursuant to contracts between UC and NNSA. Though the management and operating duties at LANL now are performed by a private company, pursuant to Contract W-7405-ENG-36, UC must perform accounting and financial reporting for the LANL Retained Segment which is defined in the current contract as "the portion of UCRP represented by the assets and liabilities accrued through May 31, 2006, and associated with the benefits of Retained Members and Beneficiaries." Similarly, at LLNL, pursuant to Contract W-7405-ENG-48, UC must perform accounting and financial reporting for the LLNL Retained Segment which is defined as "the portion of UCRP represented by the assets, including the Contribution Reserve Amount, and liabilities accrued through September 30, 2007, and associated with the benefits of Retained Members and Beneficiaries." Retained Members for both the LANL and LLNL segments are 1) retirees of the UCRP 2) terminated vested participants of the UCRP and 3) disability income recipients under UCRP or deceased participants with respect to any survivor entitled to benefits. Both contracts require UC to perform the following activities: provide an accounting of the assets in the Retained Segment, submit reports to NNSA that reflect the annual actuarial valuation for the UCRP and for the Retained Segment, submit to NNSA a copy of the Financial Accounting Standards Board Statement 87 report prepared by the UCRP each year and calculate anticipated NNSA contributions for the Retained Segment. In addition, the contracts require UC to administer the UCRP and its trust fund as fiduciaries of the UCRP. Under the contracts, NNSA is obligated to fund the Retained Segments pursuant to the terms set forth in the respective contracts. The duties set forth in the attached contract sections will be consolidated into one contract with the goal of ultimately closing Contracts W-7405-ENG-36 and W-7405-ENG-48. Portions of the current contracts pertaining to the Retained Segments with UC are attached to the synopsis for informational purposes. This is a notice of intent to award a sole source procurement action and is not a request for competitive proposals. Interested parties must provide evidence of their capability to fulfill this requirement by Apr 4, 2011, 4:00 P.M. Mountain Time, to Ms Lori L Nebeker, Contract Specialist, National Nuclear Security Administration, Office of Business Services, P.O. Box 5400, Albuquerque, NM 87185; or by e-mail at
[email protected] . Responses to this notice, if any, must show clear and convincing evidence that competition would be advantageous to the government. This notice of intent is not a request for competitive proposals. A determination not to compete this proposed contract action is solely within the discretion of the Government. Information received will normally be considered solely for the purposes of determining whether to conduct a competitive procurement. NNSA will not reimburse for any costs connected with providing the capability information.