Department of Energy awards $19.9M contract for Russian plutonium disposition technical support
Contract Overview
Contract Amount: $19,927,296 ($19.9M)
Contractor: General Atomics
Awarding Agency: Department of Energy
Start Date: 1999-12-07
End Date: 2014-03-05
Contract Duration: 5,202 days
Daily Burn Rate: $3.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: TECHNICAL SUPPORT FOR THE PRELIMINARY AND FINAL DESIGN OF A GT-MHR FOR PLUTONIUM DISPOSITION IN THE RUSSIAN FEDERATION
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92186, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Energy obligated $19.9 million to GENERAL ATOMICS for work described as: TECHNICAL SUPPORT FOR THE PRELIMINARY AND FINAL DESIGN OF A GT-MHR FOR PLUTONIUM DISPOSITION IN THE RUSSIAN FEDERATION Key points: 1. Contract awarded for specialized engineering services related to a complex international project. 2. The contract duration of over 5,000 days indicates a long-term commitment to the project. 3. Full and open competition was utilized, suggesting a broad search for qualified contractors. 4. The cost-plus-fixed-fee pricing structure allows for cost reimbursement plus a fixed fee, potentially balancing contractor incentive and government risk. 5. The contractor, General Atomics, has a history of work in complex engineering and defense sectors. 6. This contract represents a significant investment in a critical non-proliferation initiative.
Value Assessment
Rating: fair
Benchmarking the value of this specific contract is challenging due to its unique nature, focusing on international technical support for plutonium disposition. The cost-plus-fixed-fee structure means the final cost can vary based on actual expenses incurred, making direct price comparisons difficult without detailed cost breakdowns. However, the fixed fee component provides some predictability. Given the specialized expertise required, the awarded amount appears to be within a reasonable range for such a niche and critical service, though a more granular analysis of labor rates and overhead would be needed for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that the Department of Energy sought proposals from all responsible sources. This approach generally promotes a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The fact that it was competed broadly suggests that the agency aimed to leverage market forces to secure the most advantageous outcome for the government. The number of bidders is not specified, but the method itself is a positive indicator for price discovery.
Taxpayer Impact: Full and open competition typically benefits taxpayers by fostering a more competitive bidding process, which can lead to lower overall costs and better value for the services rendered.
Public Impact
The primary beneficiaries are the U.S. government and international partners involved in nuclear non-proliferation efforts. The contract delivers critical technical expertise for the design and implementation of plutonium disposition technologies. The geographic impact is primarily focused on supporting international cooperation, specifically with the Russian Federation. Workforce implications include the employment of highly skilled engineers and technical specialists in specialized fields.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Complexity of international collaboration introduces geopolitical and logistical risks.
- Reliance on a single contract for a critical phase of a sensitive program.
- Potential for cost overruns inherent in cost-plus contracts, despite the fixed fee.
Positive Signals
- Contractor has experience in complex engineering projects.
- Utilized full and open competition to ensure broad market access.
- Long contract duration suggests sustained commitment and potential for deep expertise development.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting complex, high-stakes government initiatives. The market for such specialized technical support is relatively small, dominated by firms with deep expertise in nuclear engineering, international relations, and project management. Comparable spending benchmarks are difficult to establish due to the unique nature of the project, but large-scale government engineering contracts often run into tens or hundreds of millions of dollars, depending on scope and duration.
Small Business Impact
This contract does not appear to have a specific small business set-aside. Given the highly specialized and technical nature of the work, it is likely that the primary contractors capable of performing these services are large businesses. There is no explicit information provided regarding subcontracting plans to small businesses, which could be an area for further inquiry to ensure small business participation.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Energy's contracting and program management offices. Accountability measures are embedded within the cost-plus-fixed-fee structure, requiring detailed reporting and justification of costs. Transparency is facilitated through the contract award process and ongoing performance monitoring. Inspector General jurisdiction would apply to any potential fraud, waste, or abuse related to the contract.
Related Government Programs
- Nuclear Non-Proliferation Programs
- International Atomic Energy Agency (IAEA) Support
- Department of Energy Research and Development Contracts
- Advanced Reactor Design Projects
Risk Flags
- Geopolitical Risk
- Technical Complexity
- Long-Term Project Management
- International Cooperation Challenges
Tags
engineering-services, department-of-energy, russia, plutonium-disposition, non-proliferation, full-and-open-competition, cost-plus-fixed-fee, california, nuclear-technology, international-cooperation
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $19.9 million to GENERAL ATOMICS. TECHNICAL SUPPORT FOR THE PRELIMINARY AND FINAL DESIGN OF A GT-MHR FOR PLUTONIUM DISPOSITION IN THE RUSSIAN FEDERATION
Who is the contractor on this award?
The obligated recipient is GENERAL ATOMICS.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $19.9 million.
What is the period of performance?
Start: 1999-12-07. End: 2014-03-05.
What is General Atomics' track record with similar international technical support contracts, particularly those involving sensitive materials or geopolitical complexities?
General Atomics has a significant track record in complex engineering, defense, and energy sectors. While specific details on 'plutonium disposition' contracts with Russia are not publicly itemized, the company has extensive experience in nuclear technologies, including reactor design and development (like the Gas-Turbine Modular Helium Reactor mentioned in the contract description). They have also been involved in various U.S. Department of Defense and Department of Energy projects requiring high levels of technical expertise and adherence to strict safety and security protocols. Their experience in managing large-scale, technically demanding projects suggests a capability to handle the intricacies of international collaboration and sensitive material management, although the direct comparison to this specific Russian Federation project requires further detailed investigation into their past international engagements and security clearances.
How does the awarded amount of approximately $19.9 million compare to the estimated value of similar international technical assistance contracts for nuclear material management?
Direct comparisons for international technical assistance contracts specifically for plutonium disposition are scarce due to the unique geopolitical and technical nature of such projects. However, broader contracts for nuclear engineering services, safety assessments, or technology development for international partners can range significantly. For instance, contracts supporting the International Atomic Energy Agency (IAEA) or bilateral agreements for nuclear safety and security have historically involved multi-million dollar figures over several years. The $19.9 million awarded to General Atomics over a period of approximately 14 years (from award to estimated completion) suggests an average annual value of roughly $1.4 million. This figure appears reasonable for highly specialized engineering support on a critical, long-term international non-proliferation initiative, considering the expertise required and the sensitive nature of the work.
What are the primary risks associated with this contract, and what mitigation strategies are in place?
The primary risks associated with this contract include geopolitical instability affecting the Russian Federation's participation or cooperation, potential delays in design and implementation due to technical challenges or bureaucratic hurdles, and the inherent risks of cost-plus-fixed-fee contracts leading to potential cost overruns beyond the initial estimates, despite the fixed fee. Mitigation strategies likely involve robust project management by the Department of Energy, clear communication channels with Russian counterparts, contingency planning for technical setbacks, and stringent financial oversight to monitor expenditures against the budget. The long duration also presents a risk of evolving technological landscapes or changing international agreements, requiring flexibility in the project's approach.
How effective has the Department of Energy been in managing similar long-term, high-value international technical support contracts?
The Department of Energy (DOE) has a long history of managing complex, high-value, and often international technical support contracts, particularly in areas of nuclear energy, non-proliferation, and environmental remediation. Agencies within DOE, such as the National Nuclear Security Administration (NNSA), regularly oversee programs involving international cooperation and the management of sensitive materials. While specific performance metrics for all past contracts are not publicly available, DOE's continued involvement in global nuclear security initiatives suggests a general level of effectiveness in managing such complex endeavors. Successes often involve achieving program milestones, maintaining safety and security standards, and fostering international partnerships, though challenges related to cost, schedule, and geopolitical factors are not uncommon in such large-scale efforts.
What are the historical spending patterns for plutonium disposition efforts, and how does this contract fit within that context?
Historical spending on plutonium disposition efforts, particularly those involving international cooperation with Russia, has been substantial and spans decades. These efforts are often part of broader arms control agreements and non-proliferation initiatives. The U.S. has committed significant resources, often in the hundreds of millions or even billions of dollars over time, to various disposition technologies and associated support services. This specific contract, valued at approximately $19.9 million, represents a component of the technical design and support phase for a particular disposition technology (GT-MHR). It fits within the larger context by providing the specialized engineering expertise needed to advance a specific pathway for disposition, complementing other investments in research, development, and implementation of different disposition methods.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: RESEARCH AND DEVELOPMENT › Energy R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Address: 3550 GENERAL ATOMICS COURT, SAN DIEGO, CA, 92121
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $19,927,302
Exercised Options: $19,927,302
Current Obligation: $19,927,296
Timeline
Start Date: 1999-12-07
Current End Date: 2014-03-05
Potential End Date: 2014-03-05 00:00:00
Last Modified: 2015-07-09
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