NRC awards $305.5M contract to GSE Performance Solutions for GPWR simulator maintenance and enhancements

Contract Overview

Contract Amount: $305,500 ($305.5K)

Contractor: GSE Performance Solutions, LLC

Awarding Agency: Nuclear Regulatory Commission

Start Date: 2023-05-22

End Date: 2027-05-21

Contract Duration: 1,460 days

Daily Burn Rate: $209/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: R&D

Official Description: MAINTENANCE, SUPPORT, AND ENHANCEMENTS FOR THE NRC-OWNED GENERIC PRESSURIZED WATER REACTOR (GPWR) SIMULATORS

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Nuclear Regulatory Commission obligated $305,500 to GSE PERFORMANCE SOLUTIONS, LLC for work described as: MAINTENANCE, SUPPORT, AND ENHANCEMENTS FOR THE NRC-OWNED GENERIC PRESSURIZED WATER REACTOR (GPWR) SIMULATORS Key points: 1. The contract focuses on maintaining and enhancing critical nuclear reactor simulators. 2. GSE Performance Solutions, LLC is the sole awardee. 3. The contract is for a definitive, time-and-materials agreement. 4. The NAICS code 541715 suggests R&D in physical and engineering sciences.

Value Assessment

Rating: fair

The award amount of $305.5 million over four years is substantial for simulator maintenance. Without comparable contract data, assessing value is difficult, but the time-and-materials pricing structure can lead to cost overruns if not managed closely.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs compared to a competitive process. The justification for sole-sourcing is not provided.

Taxpayer Impact: Taxpayer funds are committed without competitive bidding, potentially resulting in a less optimal price for the services rendered.

Public Impact

Ensures continued safe operation and training for nuclear regulators. Supports the development and maintenance of advanced simulation technology. Potential for cost increases due to the time-and-materials contract type.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Time and materials pricing
Potential for cost overruns

Positive Signals

Critical infrastructure support
Ensures regulatory training continuity

Sector Analysis

This contract falls under the Research and Development sector, specifically related to physical and engineering sciences. Spending in this area is crucial for technological advancement and safety in specialized industries like nuclear energy.

Small Business Impact

The contract was awarded to GSE Performance Solutions, LLC, a single entity. There is no indication of small business participation or subcontracting in the provided data.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the government receives fair value and that the contractor meets all performance requirements within the allocated budget.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Nuclear Regulatory Commission Contracting
Nuclear Regulatory Commission Programs

Risk Flags

Sole-source award
Time and materials contract type
Lack of transparency on justification
Potential for cost escalation

Frequently Asked Questions

What is this federal contract paying for?

Nuclear Regulatory Commission awarded $305,500 to GSE PERFORMANCE SOLUTIONS, LLC. MAINTENANCE, SUPPORT, AND ENHANCEMENTS FOR THE NRC-OWNED GENERIC PRESSURIZED WATER REACTOR (GPWR) SIMULATORS

Who is the contractor on this award?

The obligated recipient is GSE PERFORMANCE SOLUTIONS, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $305,500.

What is the period of performance?

Start: 2023-05-22. End: 2027-05-21.

What is the justification for awarding this contract on a sole-source basis, and what steps are being taken to ensure cost control?

The justification for sole-sourcing is not provided in the data. To ensure cost control, the NRC should implement rigorous monitoring of labor hours and material costs, establish clear performance metrics, and conduct regular reviews of the contractor's billing and progress reports. Independent cost analysis may also be beneficial.

How does the cost of this contract compare to similar simulator maintenance contracts, if any, in the public or private sector?

Without access to a broader market analysis or data on comparable contracts, it is difficult to benchmark the cost-effectiveness of this $305.5 million award. A thorough review of the contractor's pricing structure against industry standards and historical data for similar services would be necessary for a comprehensive comparison.

What are the potential risks associated with relying on a single vendor for critical simulator maintenance and enhancements over a four-year period?

The primary risks include vendor lock-in, lack of competitive pressure to innovate or reduce costs, and potential disruptions if the vendor experiences financial difficulties or performance issues. Contingency planning, such as developing alternative support options or ensuring knowledge transfer, could mitigate these risks.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

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: 31310023R0044

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 6940 COLUMBIA GATEWAY DR, COLUMBIA, MD, 21046

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

Financial Breakdown

Contract Ceiling: $490,324

Exercised Options: $414,963

Current Obligation: $305,500

Actual Outlays: $249,065

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline