DoD Awards $218M Contract for Nuclear Components to Bechtel Plant Machinery, Inc

Contract Overview

Contract Amount: $218,415,866 ($218.4M)

Contractor: Bechtel Plant Machinery, Inc.

Awarding Agency: Department of Defense

Start Date: 2001-11-19

End Date: 2015-09-30

Contract Duration: 5,063 days

Daily Burn Rate: $43.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200210!023037!1700!BZ002 !NAVAL SEA SYSTEMS COMMAND !N0002402C2100 !A!N! !N! !20011119!20071231!072972644!094878998!094878980!N!BECHTEL PLANT MACHINERY, INC !600 LIBERTY ST !SCHENECTADY !NY!12305!65508!093!36!SCHENECTADY !SCHENECTADY !NEW YORK !+000218415866!N!N!000218415866!1140!NUCLEAR COMPONENTS !A3 !SHIPS !2SDN!SUBMARINE NUCLEAR-SSN !541330!E! !3! ! ! ! ! !99990909!B! ! !A! !D!U!U!1!001!N!1A!A!Y!Z! ! !N!C!N! ! ! !B!B!A!A!000!A!C!N! ! ! ! ! ! !0001!

Place of Performance

Location: SCHENECTADY, SCHENECTADY County, NEW YORK, 12305, UNITED STATES OF AMERICA

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $218.4 million to BECHTEL PLANT MACHINERY, INC. for work described as: 200210!023037!1700!BZ002 !NAVAL SEA SYSTEMS COMMAND !N0002402C2100 !A!N! !N! !20011119!20071231!072972644!094878998!094878980!N!BECHTEL PLANT MACHINERY, INC !600 LIBERTY ST !SCHENECTADY !NY!12305!65508!093!36!SCHENECTADY !SCHEN… Key points: 1. Contract awarded for nuclear components, indicating a specialized and critical need. 2. The awardee, Bechtel Plant Machinery, Inc., has a history with defense contracts. 3. Potential risks include reliance on a single supplier and the complexity of nuclear components. 4. The sector is Defense, specifically shipbuilding and submarine components.

Value Assessment

Rating: fair

The contract value of $218.4 million for nuclear components over its period of performance appears reasonable given the specialized nature of the work. Benchmarking is difficult without more specific cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, suggesting a sole-source award. This limits price discovery and may lead to higher costs than a competitive process would yield.

Taxpayer Impact: The lack of competition could result in taxpayers paying a premium for these critical nuclear components.

Public Impact

Ensures continued operation and maintenance of critical submarine nuclear systems. Supports national security by providing essential components for naval defense. Potential for job creation within the awarded company and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price negotiation.
Complexity of nuclear components requires specialized expertise and oversight.
Long contract duration may introduce cost escalation risks.

Positive Signals

Awardee has experience in defense contracting.
Contract supports critical national security assets.
Potential for long-term sustainment of vital systems.

Sector Analysis

This contract falls within the Defense sector, specifically supporting naval shipbuilding and submarine operations. Spending in this area is often characterized by high costs due to specialized technology and stringent safety requirements.

Small Business Impact

There is no indication in the provided data that small businesses were involved in this specific contract award. Further analysis would be needed to determine if subcontracting opportunities were made available.

Oversight & Accountability

The contract was awarded by the Naval Sea Systems Command, part of the Department of Defense. Oversight would typically involve program management, quality assurance, and financial audits to ensure compliance and performance.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award
Critical nuclear components
Long contract duration
Potential for cost overruns
Limited competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $218.4 million to BECHTEL PLANT MACHINERY, INC.. 200210!023037!1700!BZ002 !NAVAL SEA SYSTEMS COMMAND !N0002402C2100 !A!N! !N! !20011119!20071231!072972644!094878998!094878980!N!BECHTEL PLANT MACHINERY, INC !600 LIBERTY ST !SCHENECTADY !NY!12305!65508!093!36!SCHENECTADY !SCHENECTADY !NEW YORK !+000218415866!N!N!000218415866!1140!NUCLEAR COMPONENTS !A3 !SHIPS !2SDN!SUBMARINE NUCLEAR-SSN !541330!E! !3! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is BECHTEL PLANT MACHINERY, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $218.4 million.

What is the period of performance?

Start: 2001-11-19. End: 2015-09-30.

What is the specific breakdown of costs for the nuclear components, and how does it compare to industry benchmarks for similar specialized manufacturing?

The provided data does not include a detailed cost breakdown for the nuclear components. A comprehensive analysis would require access to the contract's financial exhibits and comparison with industry cost data for highly specialized, safety-critical manufacturing. Without this, assessing the value for money is challenging.

What are the specific risks associated with a sole-source award for nuclear components, particularly concerning long-term availability and potential obsolescence?

A sole-source award for nuclear components carries risks of limited innovation, potential price gouging, and reduced supplier accountability. Long-term availability could be jeopardized if the sole provider faces financial difficulties or decides to exit the market. Obsolescence is also a concern if the provider does not maintain updated manufacturing capabilities or if alternative technologies emerge.

How effectively does the Naval Sea Systems Command ensure the quality and reliability of these critical nuclear components under a sole-source contract?

The Naval Sea Systems Command likely employs rigorous quality assurance protocols, inspections, and testing procedures to ensure the quality and reliability of nuclear components, even under a sole-source contract. This includes adherence to strict military specifications and potentially independent verification processes to mitigate risks associated with the lack of competitive pressure.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: NUCLEAR ORDNANCE

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Bechtel Group, Inc. (UEI: 094878980)

Address: 3500 TECHNOLOGY DR, MONROEVILLE, PA, 15146

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: YES

Timeline