DOE's Fermi Lab Management Contract Awarded to Fermi Forward Discovery Group for $2.04 Billion
Contract Overview
Contract Amount: $2,023,710,816 ($2.0B)
Contractor: Fermi Forward Discovery Group, LLC
Awarding Agency: Department of Energy
Start Date: 2024-09-30
End Date: 2029-12-31
Contract Duration: 1,918 days
Daily Burn Rate: $1.1M/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: MANAGEMENT AND OPERATING CONTRACT FOR THE FERMI NATIONAL ACCELERATOR LABORATORY (FNAL)
Place of Performance
Location: BATAVIA, KANE County, ILLINOIS, 60510
State: Illinois Government Spending
Plain-Language Summary
Department of Energy obligated $2.02 billion to FERMI FORWARD DISCOVERY GROUP, LLC for work described as: MANAGEMENT AND OPERATING CONTRACT FOR THE FERMI NATIONAL ACCELERATOR LABORATORY (FNAL) Key points: 1. The contract supports R&D in physical sciences at Fermilab. 2. Fermi Forward Discovery Group, LLC is the awardee. 3. The contract is a Cost Plus Award Fee type. 4. This is a significant award for the R&D sector.
Value Assessment
Rating: good
The contract value of $2.04 billion over its period is substantial for managing a national laboratory. Benchmarking against similar large-scale scientific facility management contracts is difficult due to unique operational complexities.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. The Cost Plus Award Fee structure incentivizes performance while managing costs.
Taxpayer Impact: Taxpayer funds are allocated for critical scientific research and facility operations, with the aim of achieving scientific breakthroughs.
Public Impact
Supports cutting-edge scientific research in physics and related fields. Ensures the continued operation and advancement of a major national laboratory. Potential for significant scientific discoveries and technological advancements. Impacts the scientific community and the broader public through research outcomes.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Potential for cost overruns inherent in Cost Plus contracts.
- Long duration of the contract may reduce future flexibility.
Positive Signals
- Awarded through full and open competition.
- Clear performance incentives through award fee structure.
- Supports critical national scientific infrastructure.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical sciences. Spending in this area is crucial for national competitiveness and scientific advancement, with significant government investment.
Small Business Impact
The provided data does not indicate any specific set-asides or participation goals for small businesses in this large management and operating contract.
Oversight & Accountability
The Department of Energy's oversight will be critical in managing the Cost Plus Award Fee structure and ensuring the contractor meets performance objectives and manages taxpayer funds effectively.
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
- Cost overrun risk
- Contract duration
- Performance metric clarity
- Small business participation
Tags
research-and-development-in-the-physical, department-of-energy, il, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $2.02 billion to FERMI FORWARD DISCOVERY GROUP, LLC. MANAGEMENT AND OPERATING CONTRACT FOR THE FERMI NATIONAL ACCELERATOR LABORATORY (FNAL)
Who is the contractor on this award?
The obligated recipient is FERMI FORWARD DISCOVERY GROUP, LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $2.02 billion.
What is the period of performance?
Start: 2024-09-30. End: 2029-12-31.
What are the key performance metrics tied to the award fee structure?
The key performance metrics are not detailed in the provided data. Typically, for a contract of this nature, metrics would include scientific output, operational efficiency, safety performance, budget adherence, and timely completion of research milestones. The specific metrics would be outlined in the contract's Statement of Work and performance evaluation plan.
What is the historical performance of the incumbent or potential competitors in managing similar large-scale scientific facilities?
Historical performance data for the incumbent or competitors is not provided. However, the selection through full and open competition suggests that the Department of Energy evaluated multiple proposals based on technical capability, past performance, and cost. A thorough review of past performance would have been a critical factor in the award decision.
How will the effectiveness of the research and development outcomes be measured and reported to the public?
The effectiveness of R&D outcomes is typically measured through peer-reviewed publications, conference presentations, patents, and the realization of technological applications. The Department of Energy and Fermilab regularly report on scientific achievements through their websites, annual reports, and public outreach initiatives, making discoveries accessible to the public.
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: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 89243123RSC000083
Offers Received: 3
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 5801 S ELLIS AVE STE 619, CHICAGO, IL, 60637
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: $2,032,163,375
Exercised Options: $2,032,163,375
Current Obligation: $2,023,710,816
Actual Outlays: $947,698,549
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-09-30
Current End Date: 2029-12-31
Potential End Date: 2029-12-31 00:00:00
Last Modified: 2026-04-02
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