DOE Awards $317M for HALEU Cascade Demo and Extended Production to American Centrifuge Operating, LLC
Contract Overview
Contract Amount: $317,041,412 ($317.0M)
Contractor: American Centrifuge Operating, LLC
Awarding Agency: Department of Energy
Start Date: 2022-11-30
End Date: 2026-06-30
Contract Duration: 1,308 days
Daily Burn Rate: $242.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST SHARING
Sector: Energy
Official Description: HIGH ASSAY LOW ENRICHED URANIUM (HALEU) CASCADE DEMO COMPLETION AND EXTENDED PRODUCTION
Place of Performance
Location: PIKETON, PIKE County, OHIO, 45661
State: Ohio Government Spending
Plain-Language Summary
Department of Energy obligated $317.0 million to AMERICAN CENTRIFUGE OPERATING, LLC for work described as: HIGH ASSAY LOW ENRICHED URANIUM (HALEU) CASCADE DEMO COMPLETION AND EXTENDED PRODUCTION Key points: 1. Significant investment in advanced nuclear fuel production. 2. Single awardee suggests potential concentration or specialized capability. 3. Long-term contract duration (1308 days) indicates sustained need. 4. Focus on Nuclear Electric Power Generation sector.
Value Assessment
Rating: questionable
The contract value of $317M is substantial for a demonstration and extended production phase. Benchmarking is difficult without specific cost breakdowns and comparison to similar advanced fuel production initiatives, which are rare.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is positive for price discovery. However, the specific nature of HALEU production may limit the number of truly competitive bidders.
Taxpayer Impact: Taxpayer funds are supporting the development of critical domestic nuclear fuel capabilities, potentially reducing reliance on foreign sources and advancing clean energy goals.
Public Impact
Enhances U.S. energy independence by developing domestic HALEU production. Supports the advancement of next-generation nuclear reactors. Potential for job creation in the nuclear energy sector. Contributes to national security by securing fuel supply chains.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited public information on cost-effectiveness.
- Potential for cost overruns in novel technology development.
- Dependence on a single contractor for critical fuel.
Positive Signals
- Addresses a critical gap in domestic HALEU supply.
- Supports a strategic national interest in nuclear energy.
- Long-term commitment signals stable demand.
Sector Analysis
This contract falls within the Nuclear Electric Power Generation sector, specifically focusing on High Assay Low Enriched Uranium (HALEU), a crucial fuel for advanced reactors. Spending benchmarks are difficult due to the nascent nature of HALEU production.
Small Business Impact
The contract was awarded to American Centrifuge Operating, LLC, and there is no indication of small business participation in this specific award. The specialized nature of HALEU production may present challenges for small business involvement.
Oversight & Accountability
The Department of Energy is the awarding and overseeing agency. The contract's long duration and significant value warrant close monitoring of milestones, cost controls, and performance to ensure accountability.
Related Government Programs
- Nuclear Electric Power Generation
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- High cost for a demonstration phase.
- Potential for cost overruns in novel technology.
- Limited transparency on specific cost metrics.
- Dependence on a single entity for critical fuel.
Tags
nuclear-electric-power-generation, department-of-energy, oh, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $317.0 million to AMERICAN CENTRIFUGE OPERATING, LLC. HIGH ASSAY LOW ENRICHED URANIUM (HALEU) CASCADE DEMO COMPLETION AND EXTENDED PRODUCTION
Who is the contractor on this award?
The obligated recipient is AMERICAN CENTRIFUGE OPERATING, LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $317.0 million.
What is the period of performance?
Start: 2022-11-30. End: 2026-06-30.
What is the projected cost per kilogram of HALEU produced under this contract, and how does it compare to existing or projected international costs?
The contract does not explicitly state a per-kilogram cost. The total award is $317M over approximately 1308 days. Benchmarking is challenging as HALEU production is still emerging globally. Further analysis would require detailed cost breakdowns and comparison with any available international cost data for similar advanced fuel production efforts.
What are the specific technical risks associated with the HALEU cascade demonstration and extended production, and what mitigation strategies are in place?
Technical risks likely include challenges in achieving stable, high-volume HALEU production, ensuring material purity, and managing the complex centrifuge technology. Mitigation strategies would typically involve rigorous testing, phased deployment, independent technical reviews, and contingency planning for equipment failures or process deviations.
How effective is this contract in establishing a sustainable and competitive domestic HALEU supply chain for future advanced reactor deployment?
This contract is a significant step towards establishing a domestic HALEU supply chain, addressing a critical bottleneck. Its long-term nature suggests a commitment to sustained production. However, long-term effectiveness hinges on achieving production targets, managing costs, and fostering a broader ecosystem of suppliers and end-users.
Industry Classification
NAICS: Utilities › Electric Power Generation, Transmission and Distribution › Nuclear Electric Power Generation
Product/Service Code: FURNACE/STEAM/DRYING; NUCL REACTOR
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 89243222RNE000026
Offers Received: 2
Pricing Type: COST SHARING (T)
Evaluated Preference: NONE
Contractor Details
Address: 6901 ROCKLEDGE DR STE 800, BETHESDA, MD, 20817
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $1,111,105,514
Exercised Options: $317,420,137
Current Obligation: $317,041,412
Actual Outlays: $240,448,099
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-11-30
Current End Date: 2026-06-30
Potential End Date: 2028-06-30 00:00:00
Last Modified: 2026-01-12
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