DOE's $18B Lawrence Livermore Lab contract awarded to UC Regents without competition
Contract Overview
Contract Amount: $18,009,867,071 ($18.0B)
Contractor: THE Regents of the University of California
Awarding Agency: Department of Energy
Start Date: 1999-10-27
End Date: 2007-09-30
Contract Duration: 2,895 days
Daily Burn Rate: $6.2M/day
Competition Type: NOT COMPETED
Pricing Type: COST NO FEE
Sector: Other
Official Description: OPERATION OF LAWRENCE LIVERMORE LABORATORY
Place of Performance
Location: LIVERMORE, ALAMEDA County, CALIFORNIA, 94550
Plain-Language Summary
Department of Energy obligated $18.01 billion to THE REGENTS OF THE UNIVERSITY OF CALIFORNIA for work described as: OPERATION OF LAWRENCE LIVERMORE LABORATORY Key points: 1. Significant contract value of $18 billion over its term. 2. Sole-source award to The Regents of the University of California. 3. No small business participation noted. 4. Contract covers operation of a national laboratory.
Value Assessment
Rating: questionable
The contract's cost-plus-no-fee structure for operating a national laboratory makes direct pricing comparisons difficult. The absence of competition significantly limits the ability to assess value for money against alternative providers.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed. This approach bypasses standard price discovery mechanisms and may lead to higher costs than a competitive process would yield.
Taxpayer Impact: The lack of competition for such a large, critical contract raises concerns about potential overspending and reduced efficiency, impacting taxpayer funds.
Public Impact
Operates a critical national laboratory, impacting scientific research and national security. Significant federal investment in a single entity for a prolonged period. Potential for innovation and breakthroughs in scientific fields.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- No small business participation
- Long contract duration
Positive Signals
- Operates a critical national asset
- Potential for scientific advancement
Sector Analysis
This contract falls under the 'Colleges, Universities, and Professional Schools' sector, specifically for the operation of a national laboratory. Benchmarks for such specialized, high-security operations are difficult to establish due to their unique nature.
Small Business Impact
The contract explicitly states no small business participation. This indicates a missed opportunity to leverage the capabilities of small businesses and promote economic diversity in federal contracting.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure accountability and prevent potential cost overruns or inefficiencies. Transparency in performance metrics and financial reporting is crucial.
Related Government Programs
- Colleges, Universities, and Professional Schools
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Lack of competition may lead to inflated costs.
- No small business participation.
- Potential for complacency in performance due to sole-source status.
- Significant taxpayer investment without competitive benchmarking.
Tags
colleges-universities-and-professional-s, department-of-energy, ca, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $18.01 billion to THE REGENTS OF THE UNIVERSITY OF CALIFORNIA. OPERATION OF LAWRENCE LIVERMORE LABORATORY
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 $18.01 billion.
What is the period of performance?
Start: 1999-10-27. End: 2007-09-30.
What is the justification for the sole-source award of this critical national laboratory operation contract?
The justification for a sole-source award typically centers on unique capabilities, specialized knowledge, or national security imperatives that only a specific entity can fulfill. For Lawrence Livermore National Laboratory, this often relates to its historical role, existing infrastructure, and highly specialized workforce essential for nuclear weapons stewardship and other national security missions.
How is the performance of the University of California in operating the laboratory being measured and evaluated?
Performance is likely evaluated through rigorous metrics defined in the contract, focusing on operational efficiency, safety compliance, scientific output, and adherence to national security objectives. The Department of Energy's oversight bodies would be responsible for regular assessments, milestone reviews, and ensuring the contractor meets all contractual obligations and mission requirements.
What are the long-term financial implications for taxpayers given the contract's value and sole-source nature?
The long-term financial implications are substantial, with $18 billion committed over nearly eight years. The sole-source award means taxpayers may not benefit from cost savings typically achieved through competition. Continuous oversight is essential to ensure costs remain reasonable and justified by the critical services provided.
Industry Classification
NAICS: Educational Services › Colleges, Universities, and Professional Schools › Colleges, Universities, and Professional Schools
Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS
Competition & Pricing
Extent Competed: NOT COMPETED
Pricing Type: COST NO FEE (S)
Contractor Details
Address: 1111 FRANKLIN STREET, 7TH FL., OAKLAND, CA, 94607
Business Categories: Category Business, Educational Institution, Higher Education, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $37,009,961,424
Exercised Options: $37,009,961,424
Current Obligation: $18,009,867,071
Actual Outlays: $616,331,694
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Timeline
Start Date: 1999-10-27
Current End Date: 2007-09-30
Potential End Date: 2007-09-30 00:00:00
Last Modified: 2026-03-02
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