Department of Energy awards $180M for Inertial Confinement Fusion target research and fabrication to General Atomics
Contract Overview
Contract Amount: $179,974,624 ($180.0M)
Contractor: General Atomics
Awarding Agency: Department of Energy
Start Date: 2019-08-01
End Date: 2024-09-30
Contract Duration: 1,887 days
Daily Burn Rate: $95.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: RESEARCH&DEVELOPMENT AND FABRICATION OF INERTIAL CONFINEMENT FUSION (ICF) TARGETS FOR THE OFFICE OF RTD&E NA-11, EXPERIMENTAL SCIENCES NA-113
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92186
Plain-Language Summary
Department of Energy obligated $180.0 million to GENERAL ATOMICS for work described as: RESEARCH&DEVELOPMENT AND FABRICATION OF INERTIAL CONFINEMENT FUSION (ICF) TARGETS FOR THE OFFICE OF RTD&E NA-11, EXPERIMENTAL SCIENCES NA-113 Key points: 1. Contract value represents a significant investment in advanced fusion research. 2. Sole-source award raises questions about potential cost efficiencies and alternative solutions. 3. Long-term contract duration suggests a sustained need for these specialized services. 4. Focus on experimental sciences indicates a commitment to pushing the boundaries of fusion technology. 5. The contractor's established role in this niche area likely influenced the procurement approach. 6. Performance will be critical in achieving key milestones for fusion energy development.
Value Assessment
Rating: fair
The contract value of approximately $180 million over five years for R&D and fabrication of ICF targets is substantial. Benchmarking this against similar, highly specialized research contracts is challenging due to the unique nature of ICF technology. However, the cost-plus-fixed-fee structure warrants scrutiny to ensure efficient resource utilization and prevent cost overruns. Without competitive bids, it's difficult to definitively assess if the pricing represents optimal value for money, but the long duration and specialized nature suggest a high baseline cost.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, General Atomics, was solicited. This approach is typically justified when a unique capability or specialized expertise is required that cannot be met by other sources. The lack of competition means there was no direct price negotiation against other potential providers, which can sometimes lead to higher costs than in a fully competed scenario. The justification for sole-source procurement needs to be robust to ensure taxpayer funds are used appropriately.
Taxpayer Impact: A sole-source award limits the government's ability to leverage competition to drive down prices, potentially resulting in a higher cost to taxpayers compared to a scenario with multiple bidders.
Public Impact
The primary beneficiaries are the Department of Energy's research initiatives in fusion energy. Services delivered include the research, development, and fabrication of specialized targets crucial for ICF experiments. The geographic impact is primarily concentrated within the research facilities conducting these experiments, likely in California where General Atomics is based. Workforce implications include the employment of highly skilled scientists, engineers, and technicians in the advanced manufacturing and research sectors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source procurement limits price discovery and potentially increases costs for taxpayers.
- The cost-plus-fixed-fee structure requires diligent oversight to manage expenditures effectively.
- Long contract duration necessitates ongoing monitoring of performance and adherence to objectives.
Positive Signals
- General Atomics possesses specialized expertise critical for Inertial Confinement Fusion research.
- The contract supports a high-priority national research objective in clean energy.
- The established relationship may ensure continuity and rapid progress in a complex field.
Sector Analysis
The contract falls within the Research and Development sector, specifically focusing on physical sciences and engineering related to fusion energy. The market for ICF target fabrication is highly specialized, with a limited number of entities possessing the requisite expertise and facilities. General Atomics is a significant player in this niche. Comparable spending benchmarks are difficult to establish due to the unique nature of ICF, but overall federal R&D spending in energy technologies is substantial, reflecting a national interest in developing advanced energy solutions.
Small Business Impact
This contract does not appear to involve small business set-asides, as indicated by the 'sb' field being false. Given the highly specialized nature of ICF target fabrication, it is unlikely that small businesses would be primary contractors for such a complex requirement. Subcontracting opportunities for small businesses may exist in supporting roles, but the primary focus is on the prime contractor's unique capabilities. The impact on the broader small business ecosystem is likely minimal for this specific award.
Oversight & Accountability
Oversight will be managed by the Department of Energy, likely through program managers and contracting officers responsible for monitoring progress, costs, and adherence to technical specifications. The contract type (cost-plus-fixed-fee) necessitates rigorous financial oversight to ensure funds are used efficiently. Transparency will depend on the DOE's reporting practices regarding research progress and expenditures. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Energy - Fusion Energy Sciences Program
- National Nuclear Security Administration - Stockpile Stewardship Program
- Advanced Manufacturing Research Grants
- National Science Foundation - Physical Sciences Research
Risk Flags
- Sole-source procurement
- Cost-plus-fixed-fee contract type
- High R&D complexity
- Long contract duration
Tags
research-and-development, department-of-energy, fusion-energy, inertial-confinement-fusion, general-atomics, california, definitive-contract, cost-plus-fixed-fee, sole-source, large-contract, physical-sciences, energy-sector
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $180.0 million to GENERAL ATOMICS. RESEARCH&DEVELOPMENT AND FABRICATION OF INERTIAL CONFINEMENT FUSION (ICF) TARGETS FOR THE OFFICE OF RTD&E NA-11, EXPERIMENTAL SCIENCES NA-113
Who is the contractor on this award?
The obligated recipient is GENERAL ATOMICS.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $180.0 million.
What is the period of performance?
Start: 2019-08-01. End: 2024-09-30.
What is General Atomics' track record with Department of Energy contracts, particularly in R&D and fusion-related projects?
General Atomics has a long-standing and extensive history of contracting with the Department of Energy and its predecessor agencies, particularly in areas related to nuclear energy, defense, and advanced research. They have been a key player in fusion energy research for decades, including significant contributions to inertial confinement fusion (ICF) programs. Their experience encompasses the design, fabrication, and testing of complex components and systems for fusion devices. This includes previous work on ICF targets, diagnostic equipment, and superconducting magnets. The company's deep involvement in these specialized fields suggests a strong technical capability and a proven ability to manage large-scale, complex research and development projects for the DOE, making them a logical choice for continued support in this area.
How does the cost-plus-fixed-fee (CPFF) contract structure compare to other contract types for R&D, and what are the implications for value?
The Cost-Plus-Fixed-Fee (CPFF) contract type is common for research and development efforts where the scope of work is not precisely defined at the outset, and costs are difficult to estimate accurately. Under CPFF, the contractor is reimbursed for allowable costs incurred plus a predetermined fixed fee representing profit. This structure incentivizes the contractor to control costs to maximize their profit margin, as the fee is fixed regardless of the final cost. Compared to fixed-price contracts, CPFF offers more flexibility for evolving R&D projects but carries a higher risk of cost overruns if not managed diligently. For taxpayers, the value depends heavily on effective government oversight to ensure costs remain reasonable and the fixed fee is appropriate for the risk and effort involved. It shifts some cost risk to the government compared to fixed-price contracts.
What are the primary risks associated with this contract, and what mitigation strategies are in place?
The primary risks associated with this contract include technical challenges in achieving fusion ignition and sustained energy output, potential cost overruns due to the complexity of R&D, and schedule delays. Since it's a sole-source award, there's also a risk of suboptimal pricing without competitive pressure. Mitigation strategies likely involve robust technical oversight by the Department of Energy program managers to monitor progress against milestones, rigorous financial controls to track expenditures under the CPFF structure, and regular performance reviews. The contractor's established expertise in ICF is a mitigating factor against technical risks. The long-term nature of fusion research also implies that risks are inherent and managed through iterative development and adaptive planning.
What is the historical spending pattern for ICF target research and fabrication by the Department of Energy?
Historical spending by the Department of Energy (DOE) on Inertial Confinement Fusion (ICF) research and development, including target fabrication, has been substantial and spans several decades. Major facilities like the National Ignition Facility (NIF) and the now-closed OMEGA Laser Facility have required significant and continuous investment in target design, materials, and precision manufacturing. While specific annual figures fluctuate based on program priorities and facility upgrades, the DOE's budget allocations for fusion energy sciences and related defense programs (like stockpile stewardship) consistently include multi-million dollar line items for ICF research. This contract, at approximately $180 million over five years, aligns with the significant, long-term financial commitment characteristic of major ICF initiatives, reflecting the ongoing national effort to advance fusion science and potentially achieve net energy gain.
How does the geographic location of the contractor (California) impact the contract's execution and oversight?
The contractor, General Atomics, is headquartered in California. This geographic concentration means that much of the research, development, and fabrication activities will likely occur within the state. For the Department of Energy (DOE), this proximity can facilitate oversight, allowing for more frequent site visits, direct engagement with project teams, and easier monitoring of facilities and progress. However, it also means that a significant portion of the federal funding is directed to a single geographic region. While not inherently a risk, it underscores the importance of robust remote oversight mechanisms and clear communication protocols to ensure accountability and transparency, especially given the contract's substantial value and the specialized nature of the work being performed.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 89233119RNA000037
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Diazyme Laboratories, Inc.
Address: 3550 GENERAL ATOMICS CT, SAN DIEGO, CA, 92121
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $188,898,939
Exercised Options: $188,898,939
Current Obligation: $179,974,624
Actual Outlays: $149,392,146
Subaward Activity
Number of Subawards: 120
Total Subaward Amount: $20,768,024
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2019-08-01
Current End Date: 2024-09-30
Potential End Date: 2024-12-31 00:00:00
Last Modified: 2025-08-01
More Contracts from General Atomics
- CVN 79 Emals Long Lead Time Material — $1.7B (Department of Defense)
- 200310!000495!1700!A8050 !naval AIR Warfare Center, Aircra!n6833503c0205 !A!N! !N! !20030728!20041028!067638957!067638957!859181984!n!general Atomics !3550 General Atomics Court!san Diego !ca!92121!66000!073!06!san Diego !SAN Diego !california!+000004883000!n!n!000107026822!1710!aircraft Landing Equipment !c9e!all Other Supplies and Equipme!2000!not Discernable or Classified !336413!E! !3! ! ! ! ! !99990909!B! ! !A! !a!y!u!2!002!b! !A!Y!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! — $928.2M (Department of Defense)
- CVN 78 Production Emals — $710.8M (Department of Defense)
- 200411!001061!1700!A8050 !naval AIR Warfare Center, Aircra!n6833504c0167 !A!N! !N! ! !20040402!20090403!067638957!067638957!859181984!n!general Atomics !3550 General Atomics Court!san Diego !ca!92121!37800!029!34!lakehurst AIR Engine!ocean !NEW Jersey!+000016000000!n!n!000145621824!1710!aircraft Landing Equipment !a1c!other Aircraft Equipment !223 !cvn(x) !541710!A!A!3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1g!a!n!z! ! !N!C!N! ! ! !z!b!a!a!000!a!b!n! ! ! !Y! ! !0001! ! — $590.2M (Department of Defense)
- CVN 81 Emals Pre-Production Planning — $511.0M (Department of Defense)
Other Department of Energy Contracts
- Federal Contract — $48.1B (Lockheed Martin Corp)
- ,Ct::igf Contract Award De-Na0003525 to the National Technology&engineering Solutions of Sandia, LLC (ntess) for the Management and Operation of the Department of Energy, National Nuclear Security Administration's Sandia National Laboratories (SNL) — $41.7B (National Technology & Engineering Solutions of Sandia, LLC)
- Management and Operation of the OAK Ridge National Laboratory — $40.8B (Ut-Battelle LLC)
- TAS::89 0240::TAS This Performance-Based Management Contract (pbmc) IS for the Management and Operation of the Lawrence Livermore National Laboratory (llnl). the Contractor Shall, in Accordance With the Provisions of This Contract, Accomplish the Missions and Programs Assigned by the U.S. Department of Energy (DOE) and Manage and Operate the Laboratory. the Laboratory IS ONE of Does Office of Defense Program Multi-Program Laboratories. the Laboratory IS a Federally Funded Research and Development Institution (established in Accordance With the Federal Acquisition Regulation (FAR) Part 35 and Operated Under This Management and Operating (M&O) Contract, AS Defined in FAR 17.6 and Dear 917.6 — $40.8B (Lawrence Livermore National Security, LLC)
- M&O of Lanl BR of U of CA — $35.3B (Regents of the University of California, the)