DOE's $33.7B Y-12/Pantex/Savannah River Contract Awarded to Consolidated Nuclear Security, LLC
Contract Overview
Contract Amount: $33,747,905,108 ($33.7B)
Contractor: Consolidated Nuclear Security, LLC
Awarding Agency: Department of Energy
Start Date: 2013-01-08
End Date: 2027-09-30
Contract Duration: 5,378 days
Daily Burn Rate: $6.3M/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: IGF::CL,CT::IGF MANAGEMENT AND OPERATING CONTRACT FOR Y-12 NATIONAL SECURITY COMPLEX, PANTEX PLANT, WITH AN OPTION FOR SAVANNAH RIVER TRITIUM OPERATIONS
Place of Performance
Location: OAK RIDGE, ANDERSON County, TENNESSEE, 37830
Plain-Language Summary
Department of Energy obligated $33.75 billion to CONSOLIDATED NUCLEAR SECURITY, LLC for work described as: IGF::CL,CT::IGF MANAGEMENT AND OPERATING CONTRACT FOR Y-12 NATIONAL SECURITY COMPLEX, PANTEX PLANT, WITH AN OPTION FOR SAVANNAH RIVER TRITIUM OPERATIONS Key points: 1. This contract covers significant national security operations at multiple sites. 2. The award to Consolidated Nuclear Security, LLC represents a major consolidation of services. 3. Potential risks include the complexity of managing multiple high-security facilities under one contract. 4. The Facilities Support Services sector is critical for government operations and national security.
Value Assessment
Rating: questionable
The contract type is Cost Plus Award Fee, which can incentivize performance but also lead to cost overruns if not managed tightly. The total award value is substantial, making cost control a key concern.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. However, the nature of these specialized services may limit the number of truly competitive bidders.
Taxpayer Impact: The significant value of this contract means that efficient management and cost control directly impact taxpayer dollars allocated to national security.
Public Impact
Ensures continued operation of critical nuclear weapons complex facilities. Supports national security missions related to nuclear deterrence and non-proliferation. Potential for job creation and economic impact in Tennessee and South Carolina. Requires stringent safety, security, and environmental compliance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost overrun potential with Cost Plus Award Fee structure.
- Complexity of managing multiple high-security sites.
- Long-term contract duration increases risk exposure.
Positive Signals
- Awarded through full and open competition.
- Consolidates services for potential efficiencies.
- Experienced contractor with existing knowledge of facilities.
Sector Analysis
This contract falls under Facilities Support Services, a broad category essential for maintaining government infrastructure and operations. Spending in this sector is often driven by national security needs and long-term asset management.
Small Business Impact
The data indicates the prime contractor is Consolidated Nuclear Security, LLC, and it does not explicitly state if small businesses are involved as subcontractors. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The Department of Energy's Inspector General is responsible for overseeing contracts of this magnitude to ensure efficiency, accountability, and compliance with regulations. Regular audits and performance reviews are crucial.
Related Government Programs
- Facilities Support Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- High contract value.
- Cost Plus Award Fee contract type.
- Long contract duration.
- Management of critical national security assets.
- Complexity of multiple site operations.
Tags
facilities-support-services, department-of-energy, tn, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $33.75 billion to CONSOLIDATED NUCLEAR SECURITY, LLC. IGF::CL,CT::IGF MANAGEMENT AND OPERATING CONTRACT FOR Y-12 NATIONAL SECURITY COMPLEX, PANTEX PLANT, WITH AN OPTION FOR SAVANNAH RIVER TRITIUM OPERATIONS
Who is the contractor on this award?
The obligated recipient is CONSOLIDATED NUCLEAR SECURITY, LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $33.75 billion.
What is the period of performance?
Start: 2013-01-08. End: 2027-09-30.
What are the specific performance metrics and award fee criteria tied to the Cost Plus Award Fee structure, and how effectively are they being monitored?
The effectiveness of the Cost Plus Award Fee structure hinges on clearly defined, measurable performance metrics aligned with the critical mission objectives of the Y-12 National Security Complex, Pantex Plant, and Savannah River Tritium Operations. Robust monitoring by the Department of Energy is essential to ensure the contractor achieves these targets and that award fees are justified, thereby controlling costs and maximizing value for taxpayers.
Given the specialized nature of nuclear facility management, what are the primary risks associated with contractor performance and potential disruptions?
Primary risks include failures in safety protocols, security breaches, environmental incidents, or operational inefficiencies that could jeopardize national security. Disruptions could arise from labor disputes, supply chain issues for specialized materials, or unforeseen technical challenges. The long duration and complexity of managing these high-consequence assets amplify these risks, requiring continuous vigilance and robust contingency planning.
How does the consolidation of these three major sites under a single contract impact overall operational effectiveness and cost efficiency?
Consolidating these sites under Consolidated Nuclear Security, LLC aims to achieve economies of scale, streamline management, and potentially reduce overhead costs compared to separate contracts. However, the effectiveness depends on the contractor's ability to integrate diverse operations and maintain high standards across all locations. Cost efficiency gains must be carefully tracked against any potential increase in management complexity or risk.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
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: 3
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 5275 WESTVIEW DR, FREDERICK, MD, 21703
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $53,512,366,492
Exercised Options: $45,385,360,405
Current Obligation: $33,747,905,108
Actual Outlays: $17,254,160,104
Subaward Activity
Number of Subawards: 15010
Total Subaward Amount: $8,280,190,639
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2013-01-08
Current End Date: 2027-09-30
Potential End Date: 2027-09-30 00:00:00
Last Modified: 2026-04-14
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