Department of Energy awards $12.1M contract for Gas Turbine Modular Helium Reactor development to General Atomics
Contract Overview
Contract Amount: $12,087,415 ($12.1M)
Contractor: General Atomics
Awarding Agency: Department of Energy
Start Date: 2007-09-28
End Date: 2013-03-31
Contract Duration: 2,011 days
Daily Burn Rate: $6.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: GAS TURBINE MODULAR HELIUM REACTOR (GT-MHR) FOR NA-26
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92121
Plain-Language Summary
Department of Energy obligated $12.1 million to GENERAL ATOMICS for work described as: GAS TURBINE MODULAR HELIUM REACTOR (GT-MHR) FOR NA-26 Key points: 1. Contract value represents a significant investment in advanced nuclear reactor technology. 2. The award to General Atomics suggests a strong existing relationship or specialized expertise. 3. The definitive contract type indicates a commitment to a specific project outcome. 4. The project duration spans over five years, implying a complex and long-term development effort. 5. The engineering services sector is critical for advancing innovative energy solutions. 6. The contract's focus on a modular helium reactor highlights a push towards next-generation nuclear power.
Value Assessment
Rating: fair
Benchmarking the value of this specific contract is challenging due to the highly specialized nature of advanced nuclear reactor development. The $12.1 million award over five years for engineering services related to the GT-MHR project appears to be a substantial investment. Without comparable contracts for similar reactor technologies or specific engineering milestones, a precise value-for-money assessment is difficult. However, the cost-plus-fixed-fee structure suggests that costs were estimated and a fixed fee was added, which can provide some cost control but also carries risks if initial estimates are inaccurate.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. However, the fact that only one bid was received (as indicated by 'no': 1) raises questions about the level of actual competition. This could be due to the highly specialized nature of the work, limited number of qualified contractors, or potentially a lack of interest from other firms. A single bid scenario can sometimes lead to less favorable pricing for the government.
Taxpayer Impact: While the contract was open to all, the low number of bids suggests that taxpayers may not have benefited from the full price discovery that robust competition typically provides.
Public Impact
The primary beneficiaries are the Department of Energy and potentially the future energy sector through advancements in nuclear technology. The services delivered involve engineering and development for a specific type of advanced nuclear reactor. The geographic impact is primarily within California, where General Atomics is located, but the long-term impact could be national or global. Workforce implications include employment for specialized engineers and technical staff within General Atomics and its potential subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition despite full and open solicitation could indicate potential for higher costs.
- The cost-plus-fixed-fee contract type can lead to cost overruns if initial estimates are not precise.
- The specialized nature of the technology may limit the pool of qualified oversight personnel.
Positive Signals
- The award to a known entity like General Atomics suggests a level of confidence in their capabilities.
- The focus on advanced nuclear technology aligns with national energy security and innovation goals.
- The definitive contract structure provides a clear framework for project completion.
Sector Analysis
The energy sector, particularly advanced nuclear technologies, is a rapidly evolving field driven by the need for clean and reliable power sources. The development of modular helium reactors represents a significant area of research and development aimed at improving safety, efficiency, and waste management compared to traditional nuclear designs. This contract fits within the broader landscape of federal investment in next-generation energy solutions, complementing other initiatives in renewable energy and grid modernization. Comparable spending benchmarks are difficult to establish due to the novelty of the technology, but federal R&D spending in nuclear energy historically represents a substantial commitment to innovation.
Small Business Impact
There is no indication that this contract involved small business set-asides, nor is there information suggesting significant subcontracting opportunities for small businesses. The specialized nature of advanced nuclear reactor development often involves large, established prime contractors with in-house capabilities. The impact on the small business ecosystem is likely minimal for this specific award, unless General Atomics actively engages small businesses for niche support services.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Energy's program management and contracting offices. Accountability measures are embedded within the cost-plus-fixed-fee structure, requiring detailed reporting and adherence to project milestones. Transparency is generally maintained through contract databases, though specific technical details of the reactor development may be proprietary. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse.
Related Government Programs
- Advanced Reactor Demonstration Program
- Nuclear Energy Innovation Capabilities Act
- Department of Energy Research and Development Programs
- Advanced Fuel Cycle Initiative
Risk Flags
- Low number of bids received despite full and open competition.
- Potential for cost overruns inherent in Cost Plus Fixed Fee contracts for R&D.
- Long development timeline for advanced nuclear technology carries inherent risks.
Tags
energy, nuclear-reactor, research-and-development, engineering-services, department-of-energy, general-atomics, california, definitive-contract, full-and-open-competition, cost-plus-fixed-fee, advanced-technology
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $12.1 million to GENERAL ATOMICS. GAS TURBINE MODULAR HELIUM REACTOR (GT-MHR) FOR NA-26
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 $12.1 million.
What is the period of performance?
Start: 2007-09-28. End: 2013-03-31.
What is General Atomics' track record with Department of Energy nuclear projects?
General Atomics has a long history of involvement with the Department of Energy (DOE) and its predecessor agencies, particularly in the areas of nuclear research, fusion energy, and advanced reactor concepts. They have been a key player in developing technologies like the TRIGA reactor and have been involved in various advanced reactor designs, including high-temperature gas reactors. Their experience with complex, long-term R&D projects for the DOE suggests a strong understanding of the agency's requirements and the technical challenges associated with nuclear innovation. This specific contract for the GT-MHR builds upon their established expertise in gas turbine and modular reactor technologies.
How does the $12.1 million award compare to other federal investments in advanced nuclear reactor R&D?
The $12.1 million award to General Atomics for the GT-MHR project is a significant, but not exceptionally large, investment within the broader context of federal funding for advanced nuclear reactor research and development. The DOE's Advanced Reactor Demonstration Program (ARDP), for instance, has awarded much larger sums, often in the hundreds of millions of dollars, to multiple companies for the demonstration of advanced reactor designs. However, this $12.1 million contract represents a focused investment in a specific technology's engineering development phase. When compared to historical R&D spending across various energy technologies, it falls within a typical range for specialized, long-term engineering projects.
What are the primary risks associated with developing a Gas Turbine Modular Helium Reactor (GT-MHR)?
The primary risks associated with developing a GT-MHR include significant technical challenges inherent in novel reactor designs, such as ensuring the long-term integrity and performance of high-temperature components, managing helium coolant systems, and developing robust fuel cycles. Economic risks involve the high cost of development and the uncertainty of future market adoption compared to established energy sources. Regulatory risks are also substantial, as new reactor designs require extensive safety reviews and licensing processes from bodies like the Nuclear Regulatory Commission. Furthermore, the long development timelines increase the risk of technological obsolescence or shifts in energy policy priorities.
How effective is the Cost Plus Fixed Fee (CPFF) contract structure for R&D projects like this?
The Cost Plus Fixed Fee (CPFF) contract structure is often used for research and development projects where the scope of work is not precisely defined at the outset, or where innovation is a key objective. It allows the contractor to be reimbursed for allowable costs incurred, plus a predetermined fixed fee representing profit. This structure can incentivize contractors to control costs, as the fee remains constant regardless of the final cost. However, it also carries risks: if the initial cost estimates are significantly inaccurate, the government may end up paying more than anticipated. Effective oversight and clear definition of milestones are crucial to mitigate these risks and ensure value for money in CPFF contracts for R&D.
What are the historical spending patterns for engineering services related to nuclear reactor development by the Department of Energy?
Historical spending patterns by the Department of Energy on engineering services for nuclear reactor development have varied significantly over time, influenced by national energy policies, research priorities, and the lifecycle of nuclear technologies. During the peak of nuclear power plant construction in the mid-to-late 20th century, spending was substantial, focusing on design, safety, and operational engineering. In more recent decades, with a shift towards advanced reactor concepts and research, spending has been more targeted towards R&D, conceptual design, and specialized engineering studies, such as the GT-MHR project. Funding levels fluctuate, often increasing during periods of renewed interest in nuclear energy as a carbon-free power source.
What is the significance of the 'definitive contract' award type in this context?
The 'definitive contract' award type signifies a formal, legally binding agreement that outlines the specific terms, conditions, scope of work, and deliverables for the project. Unlike preliminary agreements or basic ordering agreements, a definitive contract represents a commitment to a particular course of action and is typically used for substantial procurements. In the context of the GT-MHR project, it indicates that the Department of Energy is committed to funding the engineering services through to completion, as defined within the contract's parameters. This provides stability for the contractor, General Atomics, to invest resources and personnel into the development effort.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 3550 GENERAL ATOMICS CT, SAN DIEGO, CA, 92121
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $30,151,559
Exercised Options: $30,151,559
Current Obligation: $12,087,415
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2007-09-28
Current End Date: 2013-03-31
Potential End Date: 2013-03-31 00:00:00
Last Modified: 2019-04-24
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