DOE Awards $91.4M to General Atomics for Fusion Target R&D, Facing Limited Competition
Contract Overview
Contract Amount: $91,416,341 ($91.4M)
Contractor: General Atomics
Awarding Agency: Department of Energy
Start Date: 2024-10-01
End Date: 2029-09-30
Contract Duration: 1,825 days
Daily Burn Rate: $50.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: RESEARCH & DEVELOPMENT AND FABRICATION OF INERTIAL CONFINEMENT FUSION (ICF) TARGETS FOR THE OFFICE OF RTD&E NA-11, EXPERIMENTAL SCIENCES NA-113
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92121
Plain-Language Summary
Department of Energy obligated $91.4 million to GENERAL ATOMICS for work described as: RESEARCH & DEVELOPMENT AND FABRICATION OF INERTIAL CONFINEMENT FUSION (ICF) TARGETS FOR THE OFFICE OF RTD&E NA-11, EXPERIMENTAL SCIENCES NA-113 Key points: 1. Significant investment in advanced fusion research highlights a critical area of scientific development. 2. The contract's value suggests a substantial commitment to achieving fusion energy milestones. 3. Limited competition raises questions about cost-effectiveness and potential for broader industry engagement. 4. The R&D sector is crucial for future energy solutions, but requires careful oversight.
Value Assessment
Rating: fair
The contract value of $91.4M over five years for specialized R&D is substantial. Benchmarking is difficult due to the highly specialized nature of ICF targets, but the cost-plus-fixed-fee structure warrants scrutiny for potential cost overruns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed, citing limited sources for this highly specialized fabrication. This lack of competition may have impacted price discovery and potentially led to a higher price than if multiple vendors had bid.
Taxpayer Impact: Taxpayer funds are directed towards a critical but potentially high-risk research area. Without competitive pressure, ensuring optimal value for money is paramount.
Public Impact
Advancement of Inertial Confinement Fusion technology, a key area for future clean energy. Potential for breakthroughs in energy production and scientific understanding. Investment in a highly specialized scientific and manufacturing capability within the US.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Long contract duration
Positive Signals
- Supports critical R&D
- Addresses national energy goals
Sector Analysis
This contract falls within the Research and Development in the Physical, Engineering, and Life Sciences sector. Spending in this area is vital for innovation but often involves high uncertainty and specialized expertise, making benchmarks challenging.
Small Business Impact
The contract was awarded to General Atomics, a large corporation. There is no indication of small business participation in this specific award, which is common for highly specialized R&D contracts.
Oversight & Accountability
The Department of Energy's Office of RTD&E is responsible for this contract. Oversight will be crucial to ensure the cost-plus-fixed-fee structure does not lead to excessive spending and that research objectives are met efficiently.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Limited competition may lead to higher costs.
- Cost-plus contracts can be susceptible to cost overruns.
- Long contract duration increases risk exposure.
- Highly specialized nature of work limits oversight options.
- Potential for technological obsolescence or research dead-ends.
Tags
research-and-development-in-the-physical, department-of-energy, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $91.4 million to GENERAL ATOMICS. RESEARCH & DEVELOPMENT AND FABRICATION OF INERTIAL CONFINEMENT FUSION (ICF) TARGETS FOR THE OFFICE OF RTD&E NA-11, EXPERIMENTAL SCIENCES NA-113
Who is the contractor on this award?
The obligated recipient is GENERAL ATOMICS.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $91.4 million.
What is the period of performance?
Start: 2024-10-01. End: 2029-09-30.
What is the justification for the limited competition, and have alternative sourcing strategies been considered?
The justification for limited competition likely stems from the highly specialized nature of ICF target fabrication, requiring unique expertise and facilities. While alternative sourcing might be difficult, a thorough market analysis should confirm the absence of other capable vendors and explore potential for future competition through technology maturation or partnerships.
How will the cost-plus-fixed-fee structure be managed to ensure cost control and prevent overruns?
Effective management of a cost-plus-fixed-fee contract requires robust oversight, detailed cost tracking, and clear performance metrics. The DOE must establish stringent review processes, regularly audit expenditures, and ensure the fixed fee remains appropriate relative to the defined scope and achievable milestones to mitigate cost overrun risks.
What are the key performance indicators (KPIs) for this contract, and how will success in advancing ICF technology be measured?
Success metrics should focus on tangible advancements in ICF target fabrication, such as improved precision, yield, or durability, and progress towards specific experimental goals. KPIs could include meeting fabrication deadlines, achieving target performance specifications, and contributing to validated fusion energy research outcomes.
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: 89233124RNA000210
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Diazyme Laboratories, Inc.
Address: 3550 GENERAL ATOMICS CT, SAN DIEGO, CA, 92121
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: $547,231,391
Exercised Options: $247,456,540
Current Obligation: $91,416,341
Actual Outlays: $47,189,221
Subaward Activity
Number of Subawards: 12
Total Subaward Amount: $2,273,507
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2024-10-01
Current End Date: 2029-09-30
Potential End Date: 2035-03-31 00:00:00
Last Modified: 2026-03-04
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