U.S. Department Of Energy, Document Control Specialist, Washington, DC 20585

A -- REQUEST FOR EXPRESSIONS OF INTEREST POTENTIAL PRIVATIZATION OF MOLYBDENUM-99 PRODUCTION AND SALES DUE 112798 POC Point of Contact -- John Pantaleo, Business Manager, Isotope Programs, 301-903-2525 The Department of Energy hereby requests Expressions of Interest (EOI) from firms with the capability and interest in undertaking some or all of the various activities related to the production, marketing, sales, and distribution of molybdenum-99 (Mo-99). Mo-99 is the radioisotopic generator of technetium-99m, an extremely important medical isotope. There is currently no U.S. domestic production source of Mo-99. Recognizing the need to ensure a stable, long-term source of technetium-99m, the Department undertook to fill this void in 1996. The Department is presently in the final stages of completing modifications to the Annular Core Research Reactor (ACRR) and Hot Cell Facilities (HCF) at Sandia National Laboratories, necessary to produce approximately 70 percent of U.S. domestic needs for Mo-99 generator material. The ACRR has recently resumed operations following completion of the necessary modifications, while the HCF is anticipated to resume operations early in 1999. In addition, the Department anticipates approval in the third quarter of fiscal year 1999 from the Food and Drug Administration for production of Mo-99 using the ACRR and HCF. Tours of the facilities can be arranged upon request. The objectives of the Mo-99 privatization initiative are to: . provide a stable, long-term source of Mo-99 as soon as practicable to ensure the U.S. has adequate supplies of technetium-99m . have the private sector assume roles it can perform more efficiently than the government . ensure and broaden the availability of Mo-99 and related medical isotopes . decrease the Government's involvement in Mo-99 production, marketing, sales, and distribution. This is not a request for proposals; nor will any proposals be considered at this time. This request is for information from the private sector regarding potential privatization concepts, ideas, and interests in assuming some or all of the Mo-99-related activities listed below. A primary goal of the Department is the privatization of commercially viable isotope production activities as evidenced by our recent isotope-related privatization activities across the Department's complex. Each isotope activity has unique characteristics that require each be evaluated for its appropriateness and attractiveness for privatization. This request is the first step in our evaluation of Mo-99 privatization. Among the questions to be considered in Mo-99 privatization are: 1.Should the Department attempt to privatize some or all Mo-99 activities that include target fabrication and shipping; target irradiation services, target processing to produce Mo-99, Mo-99 product packaging and shipping, waste management, and Mo-99 sales and marketing? 2.What Department facilities are appropriate for use by a private sector firm or firms in conducting Mo-99 activities? 3.Given that the reactor is operational and processing hardware will be installed in the hot cells by December 15, 1998, at what point during the checkout and startup of the processing lines is the private firm willing to assume control (e.g., before introduction of radioactive material into the hot cells, after sufficient material has been produced to seek FDA approval, after FDA approval, after full-scale production is established?). 4.What investment will the private firm(s) contribute to cover such items as startup cost, materials in inventory, reactor fuel, and staffing. 5.Who will regulate the privatized Mo-99 activities (DOE or NRC)? 6.What type(s) of procurement process should be used for the privatization(s)? 7.Which of the following activities is the private sector interested in taking over from the Department and how can the Department be assured that its objectives will be met through privatization? a. All Mo-99 production- and sales-related activities and facilities. b. Target fabrication and shipping services (including related waste management). c. Target irradiation services (including operating the ACRR and related waste management.) d. Processing irradiated targets (including operating the HCF and related waste management). e. Mo-99 sales and marketing. f. Mo-99 product packaging and shipping. It should be noted that if a private firm operated or used the ACRR, although the possibility is remote, the Department would retain the right to have the reactor available to support defense missions in times of national emergency. A key question is whether the fabrication and shipping of targets (that are then irradiated and processed to produce Mo-99) should be privatized as a separate procurement from that of target irradiation, processing, and Mo-99 marketing, sales, and packaging. All information the private sector can provide regarding: (1) their interest in the above-described Mo-99 activities, (2) their capabilities to undertake some or all of these activities, and (3) how the Department can be assured that privatization of these activities will benefit the public and the taxpayers is welcome and appreciated. Thoughtful private sector input will enable the Department to fully evaluate if some or all of these activities are appropriate for privatization. Each submittal should consist of four copies, one original and three photocopies. The original copy of the EOI shall contain all documents that bear original signatures. DOE is under no obligation to pay for any costs associated with the preparation or submission of EOI in response to this notice. DOE reserves the right to respond or not respond to any portion, all, or none of the EOI's submitted in response to this notice. Input to this Request for EOI's should be provided in writing by November 27, 1998, to: John Pantaleo Business Manager Isotope Programs U.S. Department of Energy 19901 Germantown Road Germantown, MD 20874 Parties interested in a more detailed description of the operations and constraints should also contact John Pantaleo in writing or at 301-903-2525. Posted 10/09/98 (W-SN261168). (0282)

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