DOE's $16.8M long-term storage cask project awarded to EPRI, a sole-source R&D effort

Contract Overview

Contract Amount: $16,876,974 ($16.9M)

Contractor: Electric Power Research Institute Inc

Awarding Agency: Department of Energy

Start Date: 2018-10-16

End Date: 2028-10-15

Contract Duration: 3,652 days

Daily Burn Rate: $4.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST SHARING

Sector: R&D

Official Description: MONITORING THE HIGH BURN-UP LONG TERM STORAGE CASK DEMONSTRATION PROJECT

Place of Performance

Location: CHARLOTTE, MECKLENBURG County, NORTH CAROLINA, 28262

State: North Carolina Government Spending

Plain-Language Summary

Department of Energy obligated $16.9 million to ELECTRIC POWER RESEARCH INSTITUTE INC for work described as: MONITORING THE HIGH BURN-UP LONG TERM STORAGE CASK DEMONSTRATION PROJECT Key points: 1. This contract focuses on research and development, indicating a need for specialized expertise. 2. The sole-source award suggests limited market availability or a unique capability held by the contractor. 3. A long duration of 10 years points to a complex, multi-phase project. 4. The contract type is 'cost sharing,' implying shared financial risk between the government and the contractor. 5. The project's objective is to demonstrate long-term storage cask technology, crucial for nuclear waste management. 6. The contractor, Electric Power Research Institute (EPRI), is a known entity in the energy research sector.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its specialized R&D nature and sole-source award. The 'cost sharing' aspect suggests that the government is not bearing the full financial burden, which can be a positive indicator of value. However, without competitive bids, it's difficult to definitively assess if the pricing represents the best possible market rate. The total value of $16.8 million over 10 years averages to $1.68 million annually, which for a complex R&D project of this scope, appears within a reasonable range for specialized research.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning that the Department of Energy did not conduct a competitive bidding process. This typically occurs when a specific contractor possesses unique capabilities, intellectual property, or is the only entity capable of performing the required work. In this case, EPRI's established role in electric power research likely led to this determination. The lack of competition means that price discovery through market forces was not utilized.

Taxpayer Impact: For taxpayers, a sole-source award means there's a reduced opportunity to benefit from cost savings that might arise from a competitive bidding process. Oversight and justification for the sole-source determination are critical to ensure fair pricing and value.

Public Impact

The primary beneficiaries are the Department of Energy and the broader energy sector, which will gain insights into long-term storage cask technology. The services delivered involve research, development, and demonstration of advanced nuclear waste storage solutions. The geographic impact is primarily within North Carolina, where the contractor is located, but the findings have national implications for energy policy and waste management. Workforce implications include specialized R&D roles for scientists and engineers involved in the project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Long contract duration could lead to scope creep or cost overruns if not managed tightly.
Cost-sharing model requires careful monitoring to ensure contractor's cost allocation is appropriate.

Positive Signals

EPRI is a reputable research organization with a track record in the energy sector.
Cost-sharing arrangement aligns incentives and potentially reduces government financial exposure.
Focus on long-term storage is critical for addressing national nuclear waste challenges.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical and engineering sciences related to energy. The market for specialized nuclear waste storage technology is niche, often involving a limited number of highly specialized research institutions and companies. The Department of Energy is a significant player in funding such R&D, with annual spending in this category often in the billions. This contract represents a small but critical investment in advancing safe and effective long-term storage solutions.

Small Business Impact

This contract does not appear to involve small business set-asides, as it was awarded sole-source to a larger research organization. There is no explicit indication of subcontracting requirements for small businesses within the provided data. The focus on specialized R&D may limit opportunities for broad small business participation unless specific technical expertise is required.

Oversight & Accountability

Oversight for this contract will be managed by the Department of Energy. As a cost-sharing agreement, the DOE will likely have robust financial oversight to ensure the contractor's expenditures are appropriate and aligned with the project's objectives. Transparency will depend on the DOE's reporting practices regarding R&D progress and financial accountability. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Energy Research and Development Programs
Nuclear Energy Research Initiatives
Long-Term Nuclear Waste Management Projects
Advanced Cask Technology Development

Risk Flags

Sole-source award requires strong justification.
Long contract duration increases risk of scope creep and cost escalation.
Cost-sharing requires diligent financial oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $16.9 million to ELECTRIC POWER RESEARCH INSTITUTE INC. MONITORING THE HIGH BURN-UP LONG TERM STORAGE CASK DEMONSTRATION PROJECT

Who is the contractor on this award?

The obligated recipient is ELECTRIC POWER RESEARCH INSTITUTE INC.

Which agency awarded this contract?

Awarding agency: Department of Energy (Department of Energy).

What is the total obligated amount?

The obligated amount is $16.9 million.

What is the period of performance?

Start: 2018-10-16. End: 2028-10-15.

What is EPRI's track record with similar Department of Energy contracts?

The Electric Power Research Institute (EPRI) is a non-profit organization that conducts research and development for the electricity sector. While specific details on their past DOE contracts are not provided here, EPRI has a long history of collaborating with government agencies and utilities on energy-related research, including nuclear power and waste management. Their extensive experience in the field suggests a strong capability to undertake complex R&D projects. Further investigation into their contract history with DOE would reveal the scale and success of previous engagements, providing a more detailed picture of their performance and reliability for this specific project.

How does the $16.8 million cost compare to similar R&D projects in nuclear waste storage?

Directly comparing the $16.8 million cost is challenging without access to a database of similar sole-source R&D contracts in nuclear waste storage. However, the annual average of approximately $1.68 million for a 10-year project focused on demonstrating long-term storage cask technology appears reasonable for specialized research. Large-scale R&D projects, especially those involving complex engineering and safety considerations like nuclear waste, can incur significant costs due to the need for specialized expertise, facilities, and rigorous testing. The 'cost sharing' aspect also means the government's direct outlay might be less than the total project value, potentially enhancing its value proposition.

What are the primary risks associated with this long-term storage cask demonstration project?

The primary risks associated with this project include technical challenges in developing and demonstrating the long-term storage cask technology, potential delays in research and development timelines, and cost overruns, despite the cost-sharing arrangement. Given the long duration (10 years), there's also a risk of evolving regulatory requirements or scientific understanding that could impact the project's objectives or outcomes. The sole-source nature of the award introduces a risk related to the lack of competitive pressure on efficiency and innovation. Ensuring robust project management and continuous oversight will be crucial to mitigate these risks.

How effective is the cost-sharing model in ensuring value for taxpayer money in this R&D context?

The cost-sharing model is generally considered an effective mechanism for ensuring value in R&D projects by aligning the interests of the government and the contractor. By requiring EPRI to share in the project's costs, the government incentivizes the contractor to manage expenses efficiently and to prioritize research outcomes that are both scientifically sound and economically viable. This model can also reduce the overall financial burden on taxpayers compared to a fully funded government contract. However, the effectiveness hinges on the clarity of the cost-sharing agreement and rigorous oversight to ensure that the contractor's contributions are substantial and that costs are accurately reported and justified.

What are the historical spending patterns for nuclear waste storage R&D by the Department of Energy?

The Department of Energy has a long history of significant investment in nuclear energy research and development, including substantial spending on nuclear waste management and storage technologies. Historical data indicates that DOE's R&D budgets for nuclear energy have fluctuated over the years, influenced by national energy policies, technological advancements, and public safety concerns. Funding for projects like long-term storage cask demonstrations is critical for addressing the legacy of nuclear power generation. While specific annual figures for this exact sub-category are not provided, DOE's overall commitment to nuclear R&D suggests a consistent, albeit variable, allocation of resources towards ensuring safe and secure nuclear waste disposal solutions.

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 › Energy R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 89243218CNE000001

Offers Received: 1

Pricing Type: COST SHARING (T)

Evaluated Preference: NONE

Contractor Details

Address: 3420 HILLVIEW AVE, PALO ALTO, CA, 94304

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: $21,416,195

Exercised Options: $18,537,805

Current Obligation: $16,876,974

Actual Outlays: $9,534,949

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $7,397,371

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline