DOE's $3.29B Thomas Jefferson National Accelerator Facility contract with Jefferson Science Associates, LLC, runs through 2026
Contract Overview
Contract Amount: $3,290,115,890 ($3.3B)
Contractor: Jefferson Science Associates, LLC
Awarding Agency: Department of Energy
Start Date: 2006-04-17
End Date: 2026-05-31
Contract Duration: 7,349 days
Daily Burn Rate: $447.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: TAS::89 0222::TAS MANAGEMENT AND OPERATION OF THE THOMAS JEFFERSON NATIONAL ACCELERATOR FACILITY.
Place of Performance
Location: NEWPORT NEWS, NEWPORT NEWS CITY County, VIRGINIA, 23606
State: Virginia Government Spending
Plain-Language Summary
Department of Energy obligated $3.29 billion to JEFFERSON SCIENCE ASSOCIATES, LLC for work described as: TAS::89 0222::TAS MANAGEMENT AND OPERATION OF THE THOMAS JEFFERSON NATIONAL ACCELERATOR FACILITY. Key points: 1. Contract awarded via full and open competition. 2. Cost Plus Award Fee contract type. 3. Significant R&D spending in the physical sciences sector. 4. No small business participation noted.
Value Assessment
Rating: good
The Cost Plus Award Fee structure incentivizes performance while managing costs. Benchmarking against similar large-scale R&D facilities is recommended for optimal value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition is a strong indicator of competitive pricing. The award fee mechanism allows for performance-based adjustments, potentially enhancing price discovery.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for advanced scientific research.
Public Impact
Supports cutting-edge scientific research with potential for technological breakthroughs. Contributes to the nation's scientific competitiveness and workforce development. Facility operations have broad implications for physics and materials science advancements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- Potential for cost overruns with Cost Plus Award Fee contracts.
Positive Signals
- Strong competition method.
- Clear performance incentives.
- Long-term strategic investment in R&D.
Sector Analysis
This contract falls within the Research and Development sector, specifically for physical sciences. Spending benchmarks for similar large-scale national laboratory operations are typically in the hundreds of millions to billions annually.
Small Business Impact
The contract data indicates no small business participation. Future solicitations could explore opportunities for small businesses to contribute to specific research or support functions.
Oversight & Accountability
The Department of Energy's oversight is crucial for managing the performance and costs associated with this complex R&D facility. Regular performance reviews and audits are essential.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Potential for cost growth under CPAF.
- Lack of small business involvement.
- Long-term reliance on a single contractor.
- Complexity of R&D performance metrics.
Tags
research-and-development-in-the-physical, department-of-energy, va, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $3.29 billion to JEFFERSON SCIENCE ASSOCIATES, LLC. TAS::89 0222::TAS MANAGEMENT AND OPERATION OF THE THOMAS JEFFERSON NATIONAL ACCELERATOR FACILITY.
Who is the contractor on this award?
The obligated recipient is JEFFERSON SCIENCE ASSOCIATES, LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $3.29 billion.
What is the period of performance?
Start: 2006-04-17. End: 2026-05-31.
How does the awarded fee structure compare to industry standards for similar large-scale R&D facilities, and what mechanisms are in place to ensure the award fee remains justified by performance?
The Cost Plus Award Fee (CPAF) structure is common for complex R&D projects where outcomes are uncertain. To ensure justification, the Department of Energy likely employs rigorous performance metrics tied to scientific milestones and operational efficiency. Regular reviews by contracting officers assess contractor performance against these metrics to determine the award fee, preventing arbitrary increases and aligning contractor incentives with government objectives.
What are the primary risks associated with the Cost Plus Award Fee contract type for this facility, and how are they being mitigated?
The primary risk with CPAF is the potential for cost escalation if performance targets are not clearly defined or if oversight is insufficient. Mitigation strategies include robust performance work statements, detailed evaluation criteria for award fees, and continuous monitoring by the contracting officer. The Department of Energy must actively manage the contractor's performance against these metrics to control costs and ensure value.
What is the projected long-term scientific and economic impact of the Thomas Jefferson National Accelerator Facility, and how does this contract contribute to achieving those impacts?
The facility is expected to drive significant advancements in nuclear physics and materials science, leading to potential technological innovations and economic benefits through new industries and a skilled workforce. This contract ensures the continued operation and management of the facility, enabling researchers to pursue groundbreaking discoveries and maintain U.S. leadership in fundamental science.
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 AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 12050 JEFFERSON AVE, NEWPORT NEWS, VA, 23606
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $3,960,169,473
Exercised Options: $3,557,707,431
Current Obligation: $3,290,115,890
Actual Outlays: $1,188,406,095
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Timeline
Start Date: 2006-04-17
Current End Date: 2026-05-31
Potential End Date: 2026-05-31 00:00:00
Last Modified: 2026-03-30
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