NRC awards $1.4M contract for spent nuclear fuel research to Southwest Research Institute

Contract Overview

Contract Amount: $1,396,050 ($1.4M)

Contractor: Southwest Research Institute

Awarding Agency: Nuclear Regulatory Commission

Start Date: 2024-09-16

End Date: 2028-03-29

Contract Duration: 1,290 days

Daily Burn Rate: $1.1K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: DEVELOPMENT OF ANNOTATED DOCUMENTS FOR SRPS AND SELECT RGS FOR NRC REVIEW OF [1] STORAGE AND [2] TRANSPORTATION OF SPENT NUCLEAR FUEL AND RADIOACTIVE MATERIALS APPLICATIONS

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78238

State: Texas Government Spending

Plain-Language Summary

Nuclear Regulatory Commission obligated $1.4 million to SOUTHWEST RESEARCH INSTITUTE for work described as: DEVELOPMENT OF ANNOTATED DOCUMENTS FOR SRPS AND SELECT RGS FOR NRC REVIEW OF [1] STORAGE AND [2] TRANSPORTATION OF SPENT NUCLEAR FUEL AND RADIOACTIVE MATERIALS APPLICATIONS Key points: 1. Contract focuses on critical research for safe storage and transportation of nuclear materials. 2. Sole-source award raises questions about potential cost efficiencies and market exploration. 3. Long-term contract (over 3 years) suggests a need for sustained research and development. 4. Research and Development sector, specifically physical and engineering sciences, is a key area for regulatory oversight. 5. Contract value is relatively modest for a multi-year R&D effort in a specialized field.

Value Assessment

Rating: fair

The contract value of $1.4 million over approximately 3.5 years for specialized R&D appears reasonable on its face, but without a competitive bidding process, it's difficult to benchmark against market rates or assess true value for money. The cost-plus-fixed-fee structure necessitates close monitoring to ensure costs remain controlled and the fixed fee is justified by the scope of work. Comparisons to similar R&D contracts in the nuclear safety sector would be beneficial to ascertain if pricing is aligned with industry standards.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Southwest Research Institute, was considered. This approach bypasses the standard competitive bidding process, which typically involves soliciting proposals from multiple interested parties. While sole-source awards can be justified in specific circumstances, such as when a unique capability is required or for follow-on work to an existing contract, they limit price discovery and may not always result in the most cost-effective outcome for the government.

Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from the cost savings that can arise from robust competition among multiple bidders. This can potentially lead to higher overall spending for the same or similar services.

Public Impact

The Nuclear Regulatory Commission (NRC) benefits from specialized research to inform its regulatory decisions. Services delivered include the development of annotated documents crucial for reviewing applications related to storage and transportation of spent nuclear fuel and radioactive materials. The geographic impact is primarily national, as NRC regulations apply across the United States. Workforce implications include the engagement of specialized researchers and technical experts at Southwest Research Institute.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This area is vital for advancing scientific understanding and technological capabilities, particularly in highly regulated fields like nuclear energy. The market for specialized nuclear research is relatively niche, often dominated by a few key institutions with the requisite expertise and security clearances. The NRC's spending in this area is driven by its mandate to ensure public safety and environmental protection through rigorous scientific review and regulation.

Small Business Impact

This contract does not appear to involve small business set-asides, nor is there an indication of significant subcontracting opportunities for small businesses based on the provided data. The specialized nature of the research may limit the direct involvement of small businesses unless they possess highly specific expertise relevant to nuclear materials research. Further analysis would be needed to determine if any subcontracting plans are in place that would benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract will be managed by the Nuclear Regulatory Commission (NRC). As a cost-plus-fixed-fee contract, the NRC will need to closely monitor expenditures to ensure they align with the agreed-upon costs and that the fixed fee remains justified. Transparency will be maintained through contract reporting mechanisms. The NRC's internal audit and Inspector General's office would have jurisdiction to investigate any potential irregularities or inefficiencies.

Related Government Programs

Risk Flags

Tags

research-and-development, nuclear-regulatory-commission, southwest-research-institute, spent-nuclear-fuel, radioactive-materials, transportation-safety, sole-source, cost-plus-fixed-fee, texas, federal-contract

Frequently Asked Questions

What is this federal contract paying for?

Nuclear Regulatory Commission awarded $1.4 million to SOUTHWEST RESEARCH INSTITUTE. DEVELOPMENT OF ANNOTATED DOCUMENTS FOR SRPS AND SELECT RGS FOR NRC REVIEW OF [1] STORAGE AND [2] TRANSPORTATION OF SPENT NUCLEAR FUEL AND RADIOACTIVE MATERIALS APPLICATIONS

Who is the contractor on this award?

The obligated recipient is SOUTHWEST RESEARCH INSTITUTE.

Which agency awarded this contract?

Awarding agency: Nuclear Regulatory Commission (Nuclear Regulatory Commission).

What is the total obligated amount?

The obligated amount is $1.4 million.

What is the period of performance?

Start: 2024-09-16. End: 2028-03-29.

What is Southwest Research Institute's track record with the NRC and similar agencies?

Southwest Research Institute (SwRI) has a well-established history of conducting research and development for various government agencies, including the Nuclear Regulatory Commission (NRC). Their expertise spans multiple scientific and engineering disciplines relevant to nuclear safety, materials science, and environmental protection. SwRI has been involved in numerous projects for the NRC, often focusing on technical assessments, safety analyses, and the development of standards and guidelines. Their extensive experience suggests a strong capability to execute complex research tasks. While specific contract values and performance details for past NRC work are not provided here, SwRI's general reputation and consistent engagement with the agency indicate a reliable contractor for specialized R&D in this domain.

How does the value of this contract compare to similar R&D efforts for nuclear material safety?

The contract value of $1.4 million for approximately 3.5 years of R&D is relatively modest when compared to larger, multi-year federal research initiatives. However, the specific scope of 'development of annotated documents for SRPS and select RGS for NRC review of storage and transportation of spent nuclear fuel and radioactive materials applications' suggests a focused effort rather than broad foundational research. Without access to a database of comparable sole-source or competed R&D contracts within the NRC or other agencies dealing with nuclear materials, a precise benchmark is difficult. Generally, R&D in highly specialized fields like nuclear safety can be expensive due to the need for expert personnel, specialized facilities, and rigorous testing. The cost-plus-fixed-fee structure also means the final cost is influenced by actual expenses incurred, making direct value comparisons challenging without detailed cost breakdowns.

What are the primary risks associated with this sole-source contract?

The primary risk associated with this sole-source contract is the potential for suboptimal pricing and reduced innovation due to the absence of competition. Without competing bids, the NRC may not be achieving the most cost-effective outcome, as there is less pressure on Southwest Research Institute to offer the lowest possible price. Furthermore, a sole-source award can limit the exploration of alternative methodologies or technologies that other qualified contractors might have proposed. There's also a risk that the fixed fee, while providing some cost certainty, might not be adequately calibrated if the scope of work is not precisely defined or if unforeseen challenges arise. Effective contract management and oversight by the NRC are crucial to mitigate these risks.

How effective is the cost-plus-fixed-fee (CPFF) contract type for this type of R&D?

The Cost-Plus-Fixed-Fee (CPFF) contract type is often used for research and development efforts where the scope of work is not fully defined at the outset, or where significant uncertainties exist. For this contract, developing annotated documents for regulatory review implies a degree of exploration and analysis, making CPFF a potentially suitable choice. The 'cost' portion covers allowable direct and indirect costs incurred by the contractor, while the 'fixed fee' represents the contractor's profit, which is negotiated upfront and remains constant regardless of the final cost. This structure incentivizes the contractor to control costs to maximize their fee, but it also requires robust government oversight to ensure costs are reasonable and allocable. The effectiveness hinges on the clarity of the SOW and the rigor of the NRC's cost monitoring.

What are the historical spending patterns for R&D related to nuclear fuel storage and transportation by the NRC?

Historical spending patterns for R&D related to nuclear fuel storage and transportation by the NRC typically reflect the agency's ongoing mission to ensure safety and security in the nuclear industry. The NRC allocates funds to research that informs its regulatory framework, addresses emerging technical challenges, and supports licensing decisions. Spending in this area can fluctuate based on the lifecycle of nuclear facilities, advancements in technology, and evolving regulatory requirements. While specific aggregate historical spending figures for this precise sub-category are not readily available in this dataset, it is understood that the NRC consistently invests in research to maintain the highest safety standards for the storage and transportation of spent nuclear fuel and radioactive materials. This includes studies on material degradation, containment integrity, transportation accident scenarios, and environmental impact assessments.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTGeneral Science and Technology R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 31310024R0112

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 6220 CULEBRA RD, SAN ANTONIO, TX, 78238

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,118,347

Exercised Options: $2,118,347

Current Obligation: $1,396,050

Actual Outlays: $906,757

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 31310023D0004

IDV Type: IDC

Timeline

Start Date: 2024-09-16

Current End Date: 2028-03-29

Potential End Date: 2028-03-29 00:00:00

Last Modified: 2026-04-10

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