DOE Spends $39.3M on Plutonium-238 Purchase from Techsnabexport, Lacking Competition
Contract Overview
Contract Amount: $39,317,661 ($39.3M)
Contractor: Techsnabexport
Awarding Agency: Department of Energy
Start Date: 2003-01-17
End Date: 2011-06-24
Contract Duration: 3,080 days
Daily Burn Rate: $12.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: PURCHASE OF PLUTONIUM-238
Plain-Language Summary
Department of Energy obligated $39.3 million to TECHSNABEXPORT for work described as: PURCHASE OF PLUTONIUM-238 Key points: 1. Significant expenditure on a critical nuclear material. 2. Sole-source procurement raises concerns about price discovery and value. 3. Long contract duration suggests a substantial, ongoing need. 4. Lack of competition limits potential cost savings for taxpayers.
Value Assessment
Rating: questionable
The contract value of $39.3 million for Plutonium-238 is difficult to benchmark due to the specialized nature of the material and the lack of competitive bids. Without comparable contracts, assessing fair pricing is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition procurement. This significantly hinders price discovery and may lead to inflated costs for the government.
Taxpayer Impact: Taxpayers may be overpaying due to the absence of competitive pressure to secure the best possible price for this critical material.
Public Impact
Ensures supply of a vital component for deep space missions and radioisotope power systems. Potential for geopolitical implications given the supplier's origin. Highlights reliance on foreign sources for strategic materials.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source procurement
- High contract value
- Lack of competition
- Foreign supplier
Positive Signals
- Secures critical material
- Supports important scientific missions
Sector Analysis
This purchase falls under the 'All Other Basic Inorganic Chemical Manufacturing' sector. Spending benchmarks for specialized nuclear materials like Plutonium-238 are not readily available due to their unique nature and limited market.
Small Business Impact
This contract does not appear to involve small businesses, as the supplier is a foreign entity and the procurement method did not facilitate small business participation.
Oversight & Accountability
The Department of Energy's oversight of this sole-source contract is crucial to ensure the material is acquired at a reasonable price and meets all specifications, despite the lack of competition.
Related Government Programs
- All Other Basic Inorganic Chemical Manufacturing
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Sole-source procurement
- Lack of competition
- High contract value
- Potential for price inflation
- Geopolitical risk
- Supply chain vulnerability
Tags
all-other-basic-inorganic-chemical-manuf, department-of-energy, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $39.3 million to TECHSNABEXPORT. PURCHASE OF PLUTONIUM-238
Who is the contractor on this award?
The obligated recipient is TECHSNABEXPORT.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $39.3 million.
What is the period of performance?
Start: 2003-01-17. End: 2011-06-24.
What is the justification for the sole-source procurement of Plutonium-238, and what steps were taken to ensure a fair and reasonable price?
The justification for sole-source procurement typically involves unique capabilities or urgent needs that cannot be met through competition. For Plutonium-238, this could relate to specific production capabilities or essential national security/scientific requirements. The Department of Energy would have likely conducted a price analysis based on available market data, historical pricing, or cost estimations to determine reasonableness, though this is less robust than competitive benchmarking.
What are the long-term risks associated with relying on a single foreign supplier for a strategic material like Plutonium-238?
Long-term risks include supply chain disruptions due to geopolitical instability, changes in the supplier's national policies, or potential price escalations. Dependence on a single source also limits the government's leverage in negotiations and could hinder the development of domestic production capabilities, creating a strategic vulnerability.
How does the acquisition of Plutonium-238 contribute to the effectiveness of U.S. space exploration and scientific research programs?
Plutonium-238 is essential for powering Radioisotope Thermoelectric Generators (RTGs), which provide electricity for deep-space probes and rovers that travel far from the sun. Its long half-life and high energy density make it ideal for missions where solar power is insufficient, directly enabling critical scientific discoveries and exploration objectives.
Industry Classification
NAICS: Manufacturing › Basic Chemical Manufacturing › All Other Basic Inorganic Chemical Manufacturing
Product/Service Code: MISCELLANEOUS
Competition & Pricing
Extent Competed: NOT COMPETED
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $82,083,985
Exercised Options: $82,083,985
Current Obligation: $39,317,661
Timeline
Start Date: 2003-01-17
Current End Date: 2011-06-24
Potential End Date: 2011-06-24 00:00:00
Last Modified: 2011-07-06
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