DOE's $19.16B Berkeley Lab M&O Contract: Long-Term R&D Management Under Full and Open Competition
Contract Overview
Contract Amount: $19,164,564,361 ($19.2B)
Contractor: THE Regents of the University of California
Awarding Agency: Department of Energy
Start Date: 2005-06-01
End Date: 2030-05-31
Contract Duration: 9,130 days
Daily Burn Rate: $2.1M/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE
Sector: R&D
Official Description: THIS PERFORMANCE-BASED MANAGEMENT CONTRACT (PBMC) IS FOR THE MANAGEMENT AND OPERATION OF THE ERNEST ORLANDO LAWRENCE BERKELEY NATIONAL LABORATORY (LBNL). THE CONTRACTOR SHALL, IN ACCORDANCE WITH THE PROVISIONS OF THIS CONTRACT, ACCOMPLISH THE MISSIONS AND PROGRAMS ASSIGNED BY THE U.S. DEPARTMENT OF ENERGY (DOE) AND MANAGE AND OPERATE THE LABORATORY. THE LABORATORY IS ONE OF THE DOE?S OFFICE OF SCIENCE (SC) MULTI-PROGRAM LABORATORIES. THE LABORATORY IS A FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTER (FFRDC) ESTABLISHED IN ACCORDANCE WITH THE FEDERAL ACQUISITION REGULATION (FAR) PART 35 AND OPERATED UNDER THIS MANAGEMENT AND OPERATING (M&O) CONTRACT, AS DEFINED IN FAR 17.6 AND DEAR 917.6.
Place of Performance
Location: BERKELEY, ALAMEDA County, CALIFORNIA, 94720
Plain-Language Summary
Department of Energy obligated $19.16 billion to THE REGENTS OF THE UNIVERSITY OF CALIFORNIA for work described as: THIS PERFORMANCE-BASED MANAGEMENT CONTRACT (PBMC) IS FOR THE MANAGEMENT AND OPERATION OF THE ERNEST ORLANDO LAWRENCE BERKELEY NATIONAL LABORATORY (LBNL). THE CONTRACTOR SHALL, IN ACCORDANCE WITH THE PROVISIONS OF THIS CONTRACT, ACCOMPLISH THE MISSIONS AND PROGRAMS ASSIGNED BY TH… Key points: 1. The contract focuses on managing and operating the Lawrence Berkeley National Laboratory (LBNL), a key multi-program laboratory for the Department of Energy's Office of Science. 2. It's structured as a Cost Plus Incentive Fee (CPIF) definitive contract, indicating performance-based incentives tied to cost and other factors. 3. The contract duration is substantial (over 25 years), suggesting a long-term commitment to the laboratory's mission. 4. Operating as a Federally Funded Research and Development Center (FFRDC), LBNL plays a critical role in national scientific advancement.
Value Assessment
Rating: questionable
The contract type is Cost Plus Incentive Fee (CPIF), which can lead to cost overruns if not carefully managed. Without specific cost performance data, it's difficult to assess if the pricing is optimal compared to similar M&O contracts for national laboratories.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust process for selecting the contractor. This method generally promotes competitive pricing and ensures the best value is sought.
Taxpayer Impact: The long-term nature and significant value of this contract mean that efficient management and cost control are crucial for maximizing taxpayer value and ensuring funds are used effectively for research.
Public Impact
Ensures continued operation and advancement of critical scientific research at a leading national laboratory. Supports national competitiveness in physical, engineering, and life sciences through FFRDC capabilities. Long-term commitment provides stability for research programs and scientific workforce development. Potential for significant return on investment through scientific breakthroughs and technological innovation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in CPIF contracts.
- Long contract duration may reduce flexibility to adapt to changing research priorities or contractor performance.
- Complexity of managing a large, multi-program laboratory.
Positive Signals
- Awarded through full and open competition, suggesting strong initial value.
- Performance-based incentives encourage contractor efficiency.
- FFRDC designation implies high-level scientific and technical capabilities.
Sector Analysis
This contract falls within the Research and Development sector, specifically for managing a national laboratory. Spending benchmarks for such large-scale, long-term management and operation contracts are typically high due to the scope and critical nature of the facilities and research conducted.
Small Business Impact
The data does not indicate any specific provisions or focus on small business participation within this management and operating contract for a national laboratory. Such contracts typically involve large, established organizations capable of managing complex scientific operations.
Oversight & Accountability
The Department of Energy (DOE) is the contracting agency, responsible for oversight. As a Management and Operating contract for a national laboratory, it is subject to rigorous oversight mechanisms to ensure mission accomplishment and responsible stewardship of federal funds.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Cost overrun risk associated with CPIF structure.
- Potential for contractor performance degradation over a long contract term.
- Risk of misalignment with future scientific priorities due to contract length.
- Complexity of managing a large FFRDC.
- Dependence on a single contractor for critical national laboratory operations.
Tags
research-and-development-in-the-physical, department-of-energy, ca, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $19.16 billion to THE REGENTS OF THE UNIVERSITY OF CALIFORNIA. THIS PERFORMANCE-BASED MANAGEMENT CONTRACT (PBMC) IS FOR THE MANAGEMENT AND OPERATION OF THE ERNEST ORLANDO LAWRENCE BERKELEY NATIONAL LABORATORY (LBNL). THE CONTRACTOR SHALL, IN ACCORDANCE WITH THE PROVISIONS OF THIS CONTRACT, ACCOMPLISH THE MISSIONS AND PROGRAMS ASSIGNED BY THE U.S. DEPARTMENT OF ENERGY (DOE) AND MANAGE AND OPERATE THE LABORATORY. THE LABORATORY IS ONE OF THE DOE?S OFFICE OF SCIENCE (SC) MULTI-PROGRAM LABORATORIES. THE LABORATORY IS A FEDERALLY FUNDED RESEARCH AND DEVELOPME
Who is the contractor on this award?
The obligated recipient is THE REGENTS OF THE UNIVERSITY OF CALIFORNIA.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $19.16 billion.
What is the period of performance?
Start: 2005-06-01. End: 2030-05-31.
What is the historical cost performance of this contract, and how does it compare to the incentive targets?
Historical cost performance data is not provided in this summary. However, as a Cost Plus Incentive Fee (CPIF) contract, the contractor is incentivized to meet or beat cost targets. Analyzing past performance against these targets would reveal the effectiveness of the incentive structure and the contractor's ability to manage costs efficiently over the contract's lifespan.
What are the key performance metrics used to evaluate the contractor's success in managing and operating the laboratory?
Key performance metrics likely include scientific output, successful execution of DOE missions, laboratory safety and security, efficient resource management, and adherence to budget. Specific metrics would be detailed within the contract's Statement of Work and Performance Work Statement, guiding the incentive fee structure and overall evaluation.
How does the long duration of this contract impact the government's ability to ensure continued alignment with evolving scientific priorities?
The long duration (over 25 years) provides stability but necessitates robust mechanisms for periodic review and potential modification to ensure alignment with evolving scientific priorities. The DOE likely has processes for strategic planning and contract reviews to adapt the laboratory's focus and ensure continued relevance and impact.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
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
Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Address: 1111 FRANKLIN ST, OAKLAND, CA, 94607
Business Categories: Category Business, Educational Institution, Government, Higher Education, U.S. National Government, Not Designated a Small Business, Higher Education (Public), U.S. Regional/State Government
Financial Breakdown
Contract Ceiling: $21,256,597,249
Exercised Options: $21,256,597,249
Current Obligation: $19,164,564,361
Actual Outlays: $7,058,541,445
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2005-06-01
Current End Date: 2030-05-31
Potential End Date: 2030-05-31 00:00:00
Last Modified: 2026-03-26
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