Naval Sea Systems Command Awards $144M Contract for Nuclear Reactors to Bechtel Plant Machinery

Contract Overview

Contract Amount: $144,345,267 ($144.3M)

Contractor: Bechtel Plant Machinery, Inc.

Awarding Agency: Department of Defense

Start Date: 1996-11-04

End Date: 2013-09-13

Contract Duration: 6,157 days

Daily Burn Rate: $23.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 199704!1700!0177!BZ004!NAVAL SEA SYSTEMS COMMAND !N0002496C4051 !A!*!P00003 !19961104!20051231!074993825!074993825!001343953!N!79500!CBS CORPORATION !500 PENN CENTER BLVD !PITTSBURGH !PA!15235!85192!003!42!WILKINS TOWNSHIP !ALLEGHENY !PENN !0001!+000090143624!N!N!000000000000!4470!NUCLEAR REACTORS !A3 !SHIPS !2000!NOT DISCERNABLE OR CLASSIFIED !3443!3!*!*!B!B!A!*!D !N!U!1!001!N!1A!A!Y!Z!* !* !N!C!*!A!A!A!A!A!*!* !*!N!A!C!N!*!*!*!*!*!

Place of Performance

Location: MONROEVILLE, ALLEGHENY County, PENNSYLVANIA, 15146

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $144.3 million to BECHTEL PLANT MACHINERY, INC. for work described as: 199704!1700!0177!BZ004!NAVAL SEA SYSTEMS COMMAND !N0002496C4051 !A!*!P00003 !19961104!20051231!074993825!074993825!001343953!N!79500!CBS CORPORATION !500 PENN CENTER BLVD !PITTSBURGH !PA!15235!85192!003!42!WILKINS TOWNSHIP !ALLEGH… Key points: 1. The contract, valued at $144.3 million, is for nuclear reactors for ships. 2. Bechtel Plant Machinery, Inc. was the contractor for this significant defense procurement. 3. The contract was awarded by the Department of Defense, highlighting its strategic importance. 4. This spending falls within the Defense sector, a major area of federal expenditure.

Value Assessment

Rating: fair

The contract value of $144.3 million for nuclear reactors appears substantial. Benchmarking against similar complex defense systems is difficult without more specific technical details, but the duration and scope suggest a significant investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was 'NOT COMPETED,' indicating a limited competition approach. This method can sometimes lead to higher prices if robust market research and negotiation are not thoroughly conducted.

Taxpayer Impact: Taxpayer funds are being used for a critical defense capability. The lack of full competition raises questions about whether the best possible price was secured.

Public Impact

Ensures operational readiness of naval vessels requiring nuclear propulsion. Supports advanced technological capabilities within the U.S. Navy. Contributes to the defense industrial base and associated jobs. Represents a long-term investment in national security infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of full and open competition
Potential for cost overruns in complex defense contracts
Long contract duration may not reflect current market efficiencies

Positive Signals

Supports critical national defense infrastructure
Awarded to a known entity in the defense sector
Long-term commitment ensures supply chain stability

Sector Analysis

This contract falls under the Defense sector, specifically related to naval shipbuilding and nuclear propulsion systems. Federal spending in this area is typically high due to the complexity and strategic importance of military hardware.

Small Business Impact

There is no explicit indication in the provided data whether small businesses were involved as subcontractors. Further investigation would be needed to determine the extent of small business participation.

Oversight & Accountability

The Department of Defense, through agencies like the Defense Contract Management Agency, is responsible for overseeing such contracts. Accountability would involve performance monitoring, quality assurance, and financial oversight throughout the contract's lifecycle.

Related Government Programs

Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Lack of competition
Cost-plus contract type can incentivize higher costs
Long contract duration (over 9 years effective)
Potential for scope creep in complex defense projects
Reliance on a single contractor for critical components

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $144.3 million to BECHTEL PLANT MACHINERY, INC.. 199704!1700!0177!BZ004!NAVAL SEA SYSTEMS COMMAND !N0002496C4051 !A!*!P00003 !19961104!20051231!074993825!074993825!001343953!N!79500!CBS CORPORATION !500 PENN CENTER BLVD !PITTSBURGH !PA!15235!85192!003!42!WILKINS TOWNSHIP !ALLEGHENY !PENN !0001!+000090143624!N!N!000000000000!4470!NUCLEAR REACTORS !A3 !SHIPS !2000!NOT DISCERNABLE OR CLASSIFIED !3443!3!*!*!B!B!A!*!D !N!U!1!0

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $144.3 million.

What is the period of performance?

Start: 1996-11-04. End: 2013-09-13.

What was the justification for not competing this contract fully, and what steps were taken to ensure fair pricing?

The data indicates the contract was 'NOT COMPETED.' A thorough review would be necessary to understand the specific justification, such as sole-source necessity due to unique capabilities or national security concerns. Without this information, it's difficult to assess if fair pricing was achieved through alternative means like extensive negotiation or market analysis.

How does the per-unit cost of these nuclear reactors compare to industry benchmarks or previous procurements?

The provided data does not include per-unit cost breakdowns or specific technical specifications that would allow for a direct comparison to industry benchmarks or historical data. Determining cost-effectiveness would require access to detailed cost-plus fixed fee (CPFF) elements and potentially classified information regarding reactor technology.

What are the long-term implications for the Navy's fleet readiness and modernization given this significant investment?

This contract signifies a substantial investment in maintaining and potentially expanding the Navy's nuclear-powered fleet. It suggests a commitment to nuclear propulsion as a key strategic capability, ensuring long-term operational readiness and supporting the modernization of naval assets requiring this technology.

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.

Address: 3500 TECHNOLOGY DR, MONROEVILLE, PA, 15146

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline