Department of Energy awards $4.7M contract for nuclear explosive safety to Banda Group International LLC
Contract Overview
Contract Amount: $4,726,062 ($4.7M)
Contractor: Banda Group International LLC
Awarding Agency: Department of Energy
Start Date: 2024-01-16
End Date: 2028-01-15
Contract Duration: 1,460 days
Daily Burn Rate: $3.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: THE NUCLEAR EXPLOSIVE SAFETY CONTRACT IS ESTABLISHED TO MAINTAIN AND ENHANCE THE SAFETY, SECURITY AND RELIABILITY OF THE U.S. NUCLEAR WEAPONS STOCKPILE. TO PROVIDE A MEANS TO ENSURE USE OF U.S. NUCLEAR WEAPONS AND WARHEADS WHEN AUTHORIZED AND TO PREV
Place of Performance
Location: MESA, MARICOPA County, ARIZONA, 85202
State: Arizona Government Spending
Plain-Language Summary
Department of Energy obligated $4.7 million to BANDA GROUP INTERNATIONAL LLC for work described as: THE NUCLEAR EXPLOSIVE SAFETY CONTRACT IS ESTABLISHED TO MAINTAIN AND ENHANCE THE SAFETY, SECURITY AND RELIABILITY OF THE U.S. NUCLEAR WEAPONS STOCKPILE. TO PROVIDE A MEANS TO ENSURE USE OF U.S. NUCLEAR WEAPONS AND WARHEADS WHEN AUTHORIZED AND TO PREV Key points: 1. Contract focuses on maintaining and enhancing the safety, security, and reliability of the U.S. nuclear weapons stockpile. 2. Services ensure authorized use of U.S. nuclear weapons and warheads. 3. The contract is a definitive contract type, indicating a long-term commitment. 4. Awarded as a Time and Materials contract, allowing flexibility in resource allocation. 5. The contract duration is 1460 days, spanning approximately four years. 6. The contractor, Banda Group International LLC, is responsible for critical national security functions.
Value Assessment
Rating: fair
The contract value of $4.7 million over four years for nuclear explosive safety services appears reasonable given the critical nature of the work. However, without specific benchmarks for similar services or detailed cost breakdowns, a precise value-for-money assessment is challenging. The Time and Materials (T&M) contract type can sometimes lead to cost overruns if not closely managed, but it also provides necessary flexibility for evolving safety requirements. Further analysis of the contractor's historical performance and pricing on similar contracts would be beneficial.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. While sole-source awards can be justified for specialized services or when only one vendor possesses the required capabilities, they limit price discovery and potentially reduce competitive pressure. The justification for this sole-source award should be thoroughly reviewed to ensure it aligns with federal procurement regulations and best practices for ensuring fair and reasonable pricing.
Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from the cost savings that can arise from competitive bidding. This necessitates robust oversight to ensure the awarded price is fair and reasonable.
Public Impact
The primary beneficiaries are the Department of Energy and the U.S. national security apparatus, ensuring the safety and reliability of the nuclear deterrent. Services delivered include maintaining and enhancing the safety, security, and reliability of nuclear weapons. The geographic impact is national, focusing on the security of the U.S. nuclear stockpile. Workforce implications involve specialized technical and security personnel required for nuclear weapons maintenance and safety protocols.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing and potential cost savings for taxpayers.
- Time and Materials contract type carries inherent risk of cost escalation if not managed diligently.
- Lack of competition may reduce incentive for contractor to innovate or optimize service delivery.
- Critical nature of services requires stringent oversight to ensure performance and safety standards are met.
Positive Signals
- Contract addresses a critical national security requirement for nuclear weapons safety and reliability.
- Banda Group International LLC is tasked with maintaining essential functions for the U.S. nuclear deterrent.
- Definitive contract structure provides stability for a critical, long-term national security mission.
- Contract duration allows for sustained focus on safety and security protocols.
Sector Analysis
This contract falls within the scientific and technical consulting services sector, specifically related to defense and national security. The market for nuclear weapons safety and security is highly specialized, with a limited number of contractors possessing the necessary clearances, expertise, and infrastructure. Comparable spending benchmarks are difficult to establish due to the unique nature of nuclear weapons management, but overall federal spending on defense-related consulting services is substantial.
Small Business Impact
This contract does not appear to involve small business set-asides, as indicated by the 'sb': false parameter. The specialized nature of nuclear weapons safety and security services typically requires contractors with extensive experience, advanced security clearances, and significant resources, which may limit the participation of small businesses. Subcontracting opportunities for small businesses are not explicitly detailed but would likely be limited to niche support roles if any.
Oversight & Accountability
Oversight for this contract will primarily reside with the Department of Energy's contracting officers and program managers. Given the sensitive nature of the work, additional oversight may be provided by internal DOE Inspector General functions and potentially external national security oversight bodies. Transparency is likely limited due to national security concerns, but accountability will be driven by performance metrics and adherence to strict safety and security protocols.
Related Government Programs
- Nuclear Weapons Stockpile Stewardship
- National Nuclear Security Administration (NNSA) Programs
- Department of Defense Nuclear Weapons Support
- Federal Security Consulting Services
- Scientific and Technical Consulting Services
Risk Flags
- Sole-source award
- Time and Materials contract type
- Critical national security function
- Limited public transparency due to national security
Tags
department-of-energy, nuclear-safety, national-security, definitive-contract, time-and-materials, sole-source, scientific-and-technical-consulting-services, arizona, banda-group-international-llc, weapons-stockpile
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $4.7 million to BANDA GROUP INTERNATIONAL LLC. THE NUCLEAR EXPLOSIVE SAFETY CONTRACT IS ESTABLISHED TO MAINTAIN AND ENHANCE THE SAFETY, SECURITY AND RELIABILITY OF THE U.S. NUCLEAR WEAPONS STOCKPILE. TO PROVIDE A MEANS TO ENSURE USE OF U.S. NUCLEAR WEAPONS AND WARHEADS WHEN AUTHORIZED AND TO PREV
Who is the contractor on this award?
The obligated recipient is BANDA GROUP INTERNATIONAL LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $4.7 million.
What is the period of performance?
Start: 2024-01-16. End: 2028-01-15.
What is Banda Group International LLC's track record with similar government contracts, particularly those involving nuclear materials or national security?
Information regarding Banda Group International LLC's specific track record with government contracts, especially those involving nuclear materials or highly sensitive national security functions, is not readily available in the provided data. A comprehensive review would require accessing federal procurement databases (like SAM.gov or FPDS) to analyze past performance, contract awards, and any reported performance issues or successes. Understanding their experience with similar safety, security, and reliability contracts for critical infrastructure or defense assets would be crucial for assessing their capability to fulfill this nuclear explosive safety contract effectively. Without this detailed historical data, it is difficult to definitively gauge their suitability beyond the initial award.
How does the $4.7 million contract value compare to similar nuclear safety and security contracts awarded by the Department of Energy or other agencies?
Benchmarking the $4.7 million contract value for nuclear explosive safety is challenging due to the highly specialized and sensitive nature of the services. Unlike more common IT or construction contracts, the market for nuclear weapons safety expertise is limited, and pricing is influenced by stringent security requirements, unique technical skills, and regulatory compliance. A direct comparison to similar contracts is difficult without access to detailed contract information for other nuclear safety services. However, given the criticality and complexity, a multi-million dollar award over four years is not unexpected. A thorough value assessment would involve analyzing the specific scope of work, required expertise, and comparing it against any available data on contracts for maintaining the safety, security, and reliability of nuclear materials or weapons systems, if such data were publicly accessible and comparable.
What are the primary risks associated with this contract, and what mitigation strategies are in place?
The primary risks associated with this contract include potential failures in maintaining the safety, security, and reliability of the nuclear weapons stockpile, which could have catastrophic consequences. Given the sole-source nature, there's a risk of the contractor not performing optimally due to lack of competitive pressure, potentially leading to subpar service or inflated costs. The Time and Materials (T&M) contract type also presents a risk of cost overruns if not meticulously managed and monitored. Mitigation strategies should include rigorous performance monitoring by the Department of Energy, clearly defined performance metrics and deliverables, regular audits, and strong contract management oversight. For the T&M aspect, detailed cost tracking and approval processes are essential. For the sole-source aspect, ensuring the contractor maintains the highest standards through performance incentives and strict adherence to safety protocols is paramount.
How effective is the Department of Energy's oversight of sole-source contracts for critical national security functions like nuclear safety?
The effectiveness of the Department of Energy's oversight of sole-source contracts for critical national security functions, such as nuclear safety, is contingent on several factors, including the adequacy of resources allocated to contract management, the expertise of the contracting officers and technical monitors, and the robustness of the agency's internal controls and auditing processes. While sole-source awards are permissible under specific justifications (e.g., unique capabilities, national security urgency), they inherently reduce transparency and competitive pressure, placing a greater onus on the agency to ensure fair pricing and optimal performance. The Department of Energy, through its Inspector General and program offices, typically has established mechanisms for oversight. However, the effectiveness can vary, and continuous assessment of these oversight mechanisms is crucial to ensure taxpayer value and mission success for such high-stakes contracts.
What are the historical spending patterns for nuclear explosive safety contracts within the Department of Energy?
Historical spending patterns for nuclear explosive safety contracts within the Department of Energy are not detailed in the provided data. To analyze this, one would need to examine historical contract awards for similar services over several fiscal years. This would involve identifying contracts with the National Nuclear Security Administration (NNSA) or other relevant DOE components that focus on nuclear weapons safety, security, and reliability. Key metrics to track would include the total annual spending, the number of contracts awarded, the primary contractors involved, and whether these contracts were competed or sole-sourced. Understanding these patterns can reveal trends in funding, contractor reliance, and potential shifts in strategy or technology within the nuclear weapons complex.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 89233123RNA000184
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 2222 S DOBSON RD, MESA, AZ, 85202
Business Categories: Category Business, DoT Certified Disadvantaged Business Enterprise, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $18,694,520
Exercised Options: $6,593,543
Current Obligation: $4,726,062
Actual Outlays: $2,478,412
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2024-01-16
Current End Date: 2028-01-15
Potential End Date: 2034-01-15 00:00:00
Last Modified: 2026-04-06
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