DOE's $17B Argonne National Lab contract awarded to UChicago Argonne, LLC, runs through 2026
Contract Overview
Contract Amount: $16,966,032,944 ($17.0B)
Contractor: Uchicago Argonne, LLC
Awarding Agency: Department of Energy
Start Date: 2006-07-31
End Date: 2026-09-30
Contract Duration: 7,366 days
Daily Burn Rate: $2.3M/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: PERFORMANCE-BASED CONTRACT FOR MANAGEMENT AND OPERATION OF ARGONNE NATIONAL LABORATORY
Place of Performance
Location: LEMONT, DUPAGE County, ILLINOIS, 60439
State: Illinois Government Spending
Plain-Language Summary
Department of Energy obligated $16.97 billion to UCHICAGO ARGONNE, LLC for work described as: PERFORMANCE-BASED CONTRACT FOR MANAGEMENT AND OPERATION OF ARGONNE NATIONAL LABORATORY Key points: 1. Contract focuses on R&D in physical, engineering, and life sciences. 2. Performance-based contract structure incentivizes efficient operations. 3. Long-term award indicates confidence in contractor's capabilities. 4. Significant investment in a key national laboratory. 5. Potential for innovation and scientific breakthroughs. 6. Geographic concentration of spending in Illinois.
Value Assessment
Rating: good
The contract's value of over $16.9 billion over its extended period suggests a substantial and ongoing commitment to the Argonne National Laboratory's operations and research. Benchmarking this against other large-scale national laboratory management contracts is challenging due to their unique nature. However, the Cost Plus Award Fee (CPAF) structure implies that while costs are reimbursed, additional award fees are tied to performance, suggesting an attempt to ensure value for money. The long duration and significant funding indicate a stable, albeit high, investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete for the management and operation of Argonne National Laboratory. The fact that it is a definitive contract awarded to a single entity, UChicago Argonne, LLC, suggests a rigorous selection process. The level of competition at this scale for a national laboratory is typically high, aiming to secure the best management and scientific expertise.
Taxpayer Impact: Full and open competition for such a critical national asset is beneficial for taxpayers as it drives efficiency and ensures the government secures the most capable contractor at a competitive price, maximizing the return on investment for scientific advancement.
Public Impact
Benefits the scientific research community by providing access to world-class facilities and expertise at Argonne. Delivers advanced research and development services in physical, engineering, and life sciences. Primarily impacts the state of Illinois through employment and economic activity. Supports a large workforce of scientists, engineers, technicians, and administrative staff. Contributes to national security and economic competitiveness through scientific discovery.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in long-term, complex research and development projects.
- Reliance on a single contractor for critical national laboratory operations.
- Ensuring continued innovation and adaptation to evolving scientific landscapes.
Positive Signals
- Contractor's established track record in managing Argonne National Laboratory.
- Performance-based elements in the contract structure to incentivize efficiency.
- Long-term nature provides stability for research planning and execution.
- Significant investment signals commitment to scientific advancement.
Sector Analysis
The contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. National laboratories like Argonne are crucial hubs for fundamental and applied research, often involving large-scale scientific infrastructure and interdisciplinary collaboration. Spending in this category is characterized by long-term investments, significant capital expenditures, and a focus on innovation and discovery. Comparable spending benchmarks would typically involve other national laboratory management contracts or large federal R&D grants to academic institutions.
Small Business Impact
This contract does not appear to have specific small business set-aside provisions, as it is a large-scale management and operations contract for a national laboratory. However, the prime contractor, UChicago Argonne, LLC, is likely to engage small businesses for various support services, supplies, and potentially specialized research collaborations as subcontractors. The extent of subcontracting to small businesses would be a key factor in assessing the broader impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract is primarily managed by the Department of Energy, which is responsible for ensuring the contractor meets performance objectives and manages the laboratory effectively. The Cost Plus Award Fee structure includes mechanisms for performance evaluation, which are critical for accountability. Transparency is generally maintained through federal contract databases and public reporting on laboratory activities. The Inspector General of the Department of Energy would have jurisdiction over audits and investigations related to potential fraud, waste, or abuse.
Related Government Programs
- National Laboratory Management Contracts
- Department of Energy Research Programs
- Advanced Scientific Research
- Physics Research
- Engineering Research
- Life Sciences Research
Risk Flags
- Long-term contract duration may present challenges in adapting to rapidly evolving scientific needs.
- Cost Plus Award Fee structure requires robust oversight to ensure value for money.
- Reliance on a single entity for managing a critical national laboratory.
Tags
research-and-development, department-of-energy, national-laboratory, illinois, definitive-contract, cost-plus-award-fee, full-and-open-competition, large-contract, science-and-technology, management-and-operations
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $16.97 billion to UCHICAGO ARGONNE, LLC. PERFORMANCE-BASED CONTRACT FOR MANAGEMENT AND OPERATION OF ARGONNE NATIONAL LABORATORY
Who is the contractor on this award?
The obligated recipient is UCHICAGO ARGONNE, LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $16.97 billion.
What is the period of performance?
Start: 2006-07-31. End: 2026-09-30.
What is the historical spending trend for the management and operation of Argonne National Laboratory under previous contracts?
Historical spending data for Argonne National Laboratory management and operations reveals a consistent and significant federal investment over many years. Prior to the current contract, similar long-term agreements were in place, reflecting the enduring importance of the laboratory. Annual expenditures have typically been in the hundreds of millions to over a billion dollars, depending on the scope of research initiatives, infrastructure upgrades, and operational needs. The total obligated amounts have grown over time, influenced by inflation, expanded research mandates, and major capital projects. Analyzing these trends provides context for the current contract's substantial value and indicates a sustained commitment by the Department of Energy to Argonne's mission.
How does the current contract's value compare to other national laboratory management contracts?
The current contract's value of approximately $17 billion over its duration is substantial and aligns with the scale of other major national laboratory management contracts. Laboratories like Oak Ridge, Lawrence Berkeley, and Los Alamos also have multi-billion dollar contracts for their management and operation, often awarded to consortia or universities. These contracts are typically long-term (10+ years) and represent significant investments in scientific infrastructure and research capabilities. While exact figures vary based on laboratory size, mission scope, and specific research focus, the DOE's investment in Argonne is consistent with its commitment to maintaining a portfolio of world-class research facilities across the nation.
What are the key performance indicators (KPIs) used to evaluate UChicago Argonne, LLC's performance under this contract?
While the specific, detailed KPIs are often proprietary and embedded within the contract's performance work statement, a Cost Plus Award Fee (CPAF) contract structure implies that performance is rigorously evaluated against pre-defined criteria. These typically include metrics related to scientific output (publications, patents, breakthroughs), operational efficiency (cost management, safety records, facility uptime), project execution (timeliness and budget adherence for specific research initiatives), workforce development and management, and compliance with environmental, safety, and security regulations. The 'Award Fee' component means that the contractor can earn additional fee amounts based on exceeding performance expectations in these areas, incentivizing high achievement.
What is the potential impact of this contract on scientific innovation and technological advancement in the US?
This contract is foundational to fostering scientific innovation and technological advancement in the US. Argonne National Laboratory is a leader in numerous fields, including materials science, energy storage, artificial intelligence, quantum information science, and national security research. The sustained funding and long-term operational stability provided by this contract enable researchers to undertake ambitious, high-risk, high-reward projects that might not be feasible in the private sector. It supports the development of cutting-edge technologies, the training of future scientists and engineers, and the creation of intellectual property that can lead to new industries and economic growth. The contract's focus on R&D directly translates into advancements that address national challenges and enhance global competitiveness.
Are there any identified risks associated with the contractor's track record or the nature of this specific contract?
The primary risks associated with a contract of this magnitude and duration involve ensuring continued contractor performance, managing potential cost escalations, and adapting to evolving scientific priorities. UChicago Argonne, LLC, as the incumbent manager, has an established track record, which generally reduces performance risk. However, long-term contracts for complex operations always carry inherent risks. These can include the potential for complacency, challenges in attracting and retaining top talent over extended periods, and the difficulty of accurately forecasting research needs and costs years in advance. The CPAF structure aims to mitigate cost risks by linking fees to performance, but oversight remains critical to ensure efficient resource utilization and prevent cost overruns.
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
Solicitation ID: DE-RP02-06CH11357
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 5801 S ELLIS AVE, CHICAGO, IL, 60637
Business Categories: Category Business, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $17,719,611,599
Exercised Options: $17,719,611,599
Current Obligation: $16,966,032,944
Actual Outlays: $6,676,929,334
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NOT OBTAINED - WAIVED
Timeline
Start Date: 2006-07-31
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2026-04-14
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