DOE Awards $7.5B Contract to MSTS for Nevada National Security Site Management
Contract Overview
Contract Amount: $7,514,730,412 ($7.5B)
Contractor: Mission Support & Test Services LLC
Awarding Agency: Department of Energy
Start Date: 2017-08-01
End Date: 2027-11-30
Contract Duration: 3,773 days
Daily Burn Rate: $2.0M/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: IGF::CL,CT::IGF CONTRACT AWARD DE-NA0003624 TO THE MISSION SUPPORT AND TEST SERVICES LLC (MSTS) FOR THE MANAGEMENT AND OPERATION OF THE DEPARTMENT OF ENERGY NATIONAL NUCLEAR SECURITY ADMINISTRATION'S NEVADA NATIONAL SECURITY SITE.
Place of Performance
Location: LAS VEGAS, CLARK County, NEVADA, 89193
State: Nevada Government Spending
Plain-Language Summary
Department of Energy obligated $7.51 billion to MISSION SUPPORT & TEST SERVICES LLC for work described as: IGF::CL,CT::IGF CONTRACT AWARD DE-NA0003624 TO THE MISSION SUPPORT AND TEST SERVICES LLC (MSTS) FOR THE MANAGEMENT AND OPERATION OF THE DEPARTMENT OF ENERGY NATIONAL NUCLEAR SECURITY ADMINISTRATION'S NEVADA NATIONAL SECURITY SITE. Key points: 1. The contract is for management and operation of a critical national security facility. 2. MSTS, the incumbent, secured this award through full and open competition. 3. The contract type is Cost Plus Award Fee, indicating performance-based incentives. 4. This significant award highlights the ongoing need for specialized facilities management in the defense sector.
Value Assessment
Rating: good
The contract value of $7.5 billion over 10 years suggests a substantial investment. Benchmarking against similar large-scale facilities management contracts is difficult due to the unique nature of the Nevada National Security Site, but the award value appears commensurate with the scope of services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust process for soliciting bids and ensuring fair pricing. This method typically leads to better price discovery and value for the government.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential national security operations.
Public Impact
Ensures continued operation and security of a vital national nuclear security asset. Supports jobs and economic activity in the Nevada region. Maintains critical infrastructure for national defense and nuclear non-proliferation efforts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in Cost Plus Award Fee contracts.
- Long-term nature of the contract may limit future opportunities for innovation from new providers.
Positive Signals
- Awarded through full and open competition, promoting fairness.
- Includes award fee structure to incentivize performance.
- Ensures continuity of critical national security operations.
Sector Analysis
This contract falls within the Facilities Support Services sector, specifically for managing complex government sites. Spending in this sector is often driven by national security, research, and infrastructure needs, with large, long-term contracts being common for specialized operations.
Small Business Impact
The data indicates that the prime contractor is Mission Support & Test Services LLC, and there is no explicit mention of small business participation in the award details provided. Further analysis would be needed to determine if small businesses are subcontracting for specific services.
Oversight & Accountability
The Department of Energy's Inspector General likely provides oversight for this contract, ensuring compliance with terms and conditions, and monitoring performance and financial expenditures to safeguard taxpayer dollars.
Related Government Programs
- Facilities Support Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Potential for cost creep in CPAF contracts.
- Long-term commitment may reduce future competition.
- Complexity of operations increases inherent risk.
- Dependence on a single contractor for critical infrastructure.
Tags
facilities-support-services, department-of-energy, nv, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $7.51 billion to MISSION SUPPORT & TEST SERVICES LLC. IGF::CL,CT::IGF CONTRACT AWARD DE-NA0003624 TO THE MISSION SUPPORT AND TEST SERVICES LLC (MSTS) FOR THE MANAGEMENT AND OPERATION OF THE DEPARTMENT OF ENERGY NATIONAL NUCLEAR SECURITY ADMINISTRATION'S NEVADA NATIONAL SECURITY SITE.
Who is the contractor on this award?
The obligated recipient is MISSION SUPPORT & TEST SERVICES LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $7.51 billion.
What is the period of performance?
Start: 2017-08-01. End: 2027-11-30.
What is the historical performance of MSTS in managing similar facilities, and how does it inform the award fee structure?
Historical performance data for MSTS in managing similar complex government facilities is crucial for understanding the rationale behind the award fee structure. A strong track record would justify performance incentives, while any past issues might necessitate closer scrutiny of the fee mechanism to ensure it effectively drives desired outcomes and prevents cost overruns.
How does the Cost Plus Award Fee structure balance cost control with incentivizing mission success at this critical site?
The Cost Plus Award Fee (CPAF) structure aims to reimburse allowable costs while providing incentives for meeting or exceeding performance objectives. For this contract, the balance is achieved by defining specific award criteria tied to operational efficiency, safety, security, and mission accomplishment. Oversight is critical to ensure that the 'award' portion truly reflects superior performance and doesn't inadvertently inflate costs.
What are the key performance indicators (KPIs) used to determine award fees, and how are they measured?
Key Performance Indicators (KPIs) for this contract would likely include metrics related to operational uptime, safety incident rates, security compliance, environmental stewardship, and successful execution of test missions. Measurement methods would involve rigorous data collection, independent verification, and regular performance reviews by the contracting officer's representative (COR) to objectively assess MSTS's performance against pre-defined targets.
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: 5
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 23500 W 105TH ST MD 300, OLATHE, KS, 66061
Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $11,256,166,778
Exercised Options: $11,256,166,778
Current Obligation: $7,514,730,412
Actual Outlays: $4,796,306,980
Subaward Activity
Number of Subawards: 30
Total Subaward Amount: $25,496,729
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2017-08-01
Current End Date: 2027-11-30
Potential End Date: 2027-11-30 00:00:00
Last Modified: 2026-03-31
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