NRC awards $228.8M sole-source contract to INPO for nuclear operational experience data and IRIS database access

Contract Overview

Contract Amount: $2,287,562 ($2.3M)

Contractor: Institute of Nuclear Power Operations, Inc.

Awarding Agency: Nuclear Regulatory Commission

Start Date: 2022-01-01

End Date: 2026-12-31

Contract Duration: 1,825 days

Daily Burn Rate: $1.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE U.S. NRC, RES REQUIRES A NEW MULTIPLE-YEAR SOLE SOURCE CONTRACT WITH INPO FOR OPERATIONAL EXPERIENCE (OPE) DATA AND INTERNET-BASED ACCESS TO THE PROPRIETARY INPO INDUSTRY REPORTING INFORMATION SYSTEM (IRIS) DATABASE, ASSOCIATED TRAINING, IF NECES

Place of Performance

Location: ATLANTA, COBB County, GEORGIA, 30339

State: Georgia Government Spending

Plain-Language Summary

Nuclear Regulatory Commission obligated $2.3 million to INSTITUTE OF NUCLEAR POWER OPERATIONS, INC. for work described as: THE U.S. NRC, RES REQUIRES A NEW MULTIPLE-YEAR SOLE SOURCE CONTRACT WITH INPO FOR OPERATIONAL EXPERIENCE (OPE) DATA AND INTERNET-BASED ACCESS TO THE PROPRIETARY INPO INDUSTRY REPORTING INFORMATION SYSTEM (IRIS) DATABASE, ASSOCIATED TRAINING, IF NECES Key points: 1. The contract focuses on critical operational experience data and a proprietary database essential for nuclear safety. 2. INPO is the sole provider of this specific data and system, indicating a lack of direct competition. 3. The primary risk lies in the sole-source nature, potentially limiting price negotiation and innovation. 4. This spending falls under Engineering Services, supporting the Nuclear Regulatory Commission's safety oversight mission.

Value Assessment

Rating: questionable

The contract value of $228.8 million over five years for specialized operational data and database access appears high given the sole-source nature. Benchmarking is difficult without comparable contracts, but the lack of competition raises concerns about optimal pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, relying on a sole-source justification. This limits price discovery and negotiation leverage, as INPO is the only entity capable of providing the required proprietary data and IRIS system.

Taxpayer Impact: Taxpayers are funding a critical but non-competed service, with potential for overpayment due to the lack of market alternatives.

Public Impact

Ensures continued access to vital operational data for nuclear safety. Supports the NRC's regulatory oversight and risk assessment capabilities. Maintains the infrastructure for sharing lessons learned across the nuclear industry. Potential for increased costs due to sole-source procurement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source procurement
Lack of competition
High contract value for specialized service

Positive Signals

Essential service for nuclear safety
Long-term operational data continuity

Sector Analysis

This contract falls under Engineering Services (NAICS 541330) and supports the Nuclear Regulatory Commission's mission. Spending in this sector is often driven by regulatory requirements and specialized expertise, with benchmarks varying widely based on the specific services and criticality.

Small Business Impact

The data indicates that small businesses were not involved in this specific procurement. The nature of the service, requiring access to proprietary INPO data and systems, likely precludes small business participation.

Oversight & Accountability

The sole-source nature of this contract warrants close oversight to ensure the pricing remains reasonable and the services delivered meet the NRC's critical safety needs. Accountability rests with the NRC to justify the continued sole-source relationship.

Related Government Programs

Engineering Services
Nuclear Regulatory Commission Contracting
Nuclear Regulatory Commission Programs

Risk Flags

Sole-source procurement limits competition and negotiation leverage.
High contract value for a specialized, non-competed service.
Dependence on a single entity for critical operational data.
Potential for cost overruns due to lack of market alternatives.

Frequently Asked Questions

What is this federal contract paying for?

Nuclear Regulatory Commission awarded $2.3 million to INSTITUTE OF NUCLEAR POWER OPERATIONS, INC.. THE U.S. NRC, RES REQUIRES A NEW MULTIPLE-YEAR SOLE SOURCE CONTRACT WITH INPO FOR OPERATIONAL EXPERIENCE (OPE) DATA AND INTERNET-BASED ACCESS TO THE PROPRIETARY INPO INDUSTRY REPORTING INFORMATION SYSTEM (IRIS) DATABASE, ASSOCIATED TRAINING, IF NECES

Who is the contractor on this award?

The obligated recipient is INSTITUTE OF NUCLEAR POWER OPERATIONS, INC..

Which agency awarded this contract?

Awarding agency: Nuclear Regulatory Commission (Nuclear Regulatory Commission).

What is the total obligated amount?

The obligated amount is $2.3 million.

What is the period of performance?

Start: 2022-01-01. End: 2026-12-31.

What is the justification for INPO being the sole provider of this operational experience data and IRIS system, and has the NRC explored alternative data sources or methods for acquiring similar infor

The justification for INPO's sole-source status likely stems from the proprietary nature of their Operational Experience (OPE) data and the IRIS database, which are developed and maintained by INPO for the nuclear industry. The NRC would need to demonstrate that no other source can provide this specific, integrated dataset and system. Exploring alternatives would involve assessing if other entities collect comparable data, if the data could be aggregated from multiple sources, or if a new system could be developed, which would likely be more costly and time-consuming than continuing with the established sole-source provider.

How does the NRC ensure fair pricing and value for money when awarding a sole-source contract of this magnitude, especially given the lack of competitive bidding?

When awarding sole-source contracts, the NRC typically relies on various methods to ensure fair pricing. This can include conducting independent cost analyses, reviewing INPO's cost structure and profit margins, and comparing the proposed pricing to historical data or industry benchmarks for similar, albeit not identical, services. The agency may also negotiate specific terms and performance metrics to maximize value. However, the inherent lack of competition means the government's leverage in price negotiation is reduced compared to a competitive procurement.

What are the long-term implications for nuclear safety and regulatory effectiveness if INPO's operational experience data or IRIS system were to become unavailable or significantly degraded?

The unavailability or degradation of INPO's operational experience data and IRIS system would pose significant risks to nuclear safety and regulatory effectiveness. This data is crucial for identifying trends, potential failures, and best practices across the industry, enabling proactive safety improvements and informed regulatory decisions. Without it, the NRC's ability to anticipate and mitigate risks would be severely hampered, potentially leading to increased safety incidents or a less efficient regulatory oversight process. The reliance on a single source amplifies this risk.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 31310022Q0002

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 700 GALLERIA PKWY SE STE 100, ATLANTA, GA, 30339

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,287,562

Exercised Options: $2,287,562

Current Obligation: $2,287,562

Actual Outlays: $2,042,611

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline