DOE's $433M Berkeley Lab Contract Awarded to UC Regents Amidst Limited Competition
Contract Overview
Contract Amount: $433,474,111 ($433.5M)
Contractor: THE Regents of the University of California
Awarding Agency: Department of Energy
Start Date: 2003-04-17
End Date: 2005-05-31
Contract Duration: 775 days
Daily Burn Rate: $559.3K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: OPERATION OF BERKELEY NATIONALLABORATORY
Place of Performance
Location: BERKELEY, ALAMEDA County, CALIFORNIA, 94720
Plain-Language Summary
Department of Energy obligated $433.5 million to THE REGENTS OF THE UNIVERSITY OF CALIFORNIA for work described as: OPERATION OF BERKELEY NATIONALLABORATORY Key points: 1. The contract value of $433.5M for R&D services is substantial. 2. Competition was limited, raising questions about price discovery. 3. The 'Cost Plus Award Fee' structure can incentivize performance but may lead to higher costs. 4. The sector is Research and Development, a critical area for national advancement.
Value Assessment
Rating: fair
The contract is a Cost Plus Award Fee type, which can be less predictable in final cost compared to fixed-price contracts. Benchmarking is difficult without specific performance data and award fee payouts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed, indicating a limited competition approach. This method may not always yield the best price for the government as it reduces the pool of potential bidders and competitive pressure.
Taxpayer Impact: The lack of full and open competition could potentially lead to higher costs for taxpayers if alternative, more cost-effective providers were available.
Public Impact
Significant taxpayer funds are allocated to a single entity for R&D operations. The long-term operational contract impacts the continuity of research at a national laboratory. The award method influences how public funds are managed and scrutinized for efficiency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Cost-plus contract type
- Lack of small business participation
Positive Signals
- Award to established institution (UC Regents)
- Focus on critical R&D sector
Sector Analysis
This contract falls within the Research and Development sector, specifically physical, engineering, and life sciences. Spending in this area is crucial for innovation but requires careful oversight to ensure value for money.
Small Business Impact
The data indicates no specific small business participation in this contract. For large, complex R&D operations, integrating small businesses can be challenging but offers opportunities for specialized innovation and economic impact.
Oversight & Accountability
Oversight is managed by the Department of Energy, which is responsible for ensuring the effective and efficient operation of national laboratories. The 'Award Fee' component suggests performance metrics are in place, subject to oversight.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Limited competition raises concerns about potential overpricing.
- Cost-plus contract types can lead to cost growth if not tightly managed.
- Lack of small business participation may limit broader economic benefits.
- Contract duration and value warrant close monitoring for performance and efficiency.
Tags
research-and-development-in-the-physical, department-of-energy, ca, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $433.5 million to THE REGENTS OF THE UNIVERSITY OF CALIFORNIA. OPERATION OF BERKELEY NATIONALLABORATORY
Who is the contractor on this award?
The obligated recipient is THE REGENTS OF THE UNIVERSITY OF CALIFORNIA.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $433.5 million.
What is the period of performance?
Start: 2003-04-17. End: 2005-05-31.
What specific performance metrics are tied to the award fee, and how are they objectively measured to ensure fair compensation and taxpayer value?
The award fee structure is designed to incentivize performance beyond minimum requirements. Specific metrics would likely relate to research output, project milestones, budget adherence, and operational efficiency. Objective measurement is crucial and typically involves detailed reporting, peer review, and independent assessments by the contracting officer to determine the fee payout, ensuring alignment with government objectives and preventing cost overruns.
Given the limited competition, what steps were taken to ensure the selected contractor, The Regents of the University of California, offered the best value and competitive pricing?
When limited competition is used, agencies must justify the approach. This often involves demonstrating that only one source is capable of meeting the requirement or that a compelling urgency exists. For R&D, specialized expertise might be the justification. Price analysis techniques, such as comparing proposed costs to historical prices or independent cost estimates, would be employed to ensure the negotiated price is fair and reasonable, even without multiple bids.
How does the operational cost of Berkeley National Laboratory under this contract compare to similar national laboratories managed by different entities or under different contract structures?
Direct comparison is complex due to unique research missions, facility ages, and specific operational needs of each national laboratory. However, the Department of Energy likely benchmarks operational costs internally. Factors like indirect cost rates, personnel costs, and overhead allocations would be scrutinized. The 'Cost Plus Award Fee' structure's efficiency can be assessed by comparing total expenditures against achieved research outcomes and programmatic goals over time.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Pricing Type: COST PLUS AWARD FEE (R)
Contractor Details
Parent Company: State of California Controllers Office (UEI: 071549000)
Address: 1111 FRANKLIN STREET, 7TH FL., OAKLAND, CA, 12
Business Categories: Category Business, Educational Institution, Higher Education, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $13,400,764,785
Exercised Options: $13,279,338,261
Current Obligation: $433,474,111
Timeline
Start Date: 2003-04-17
Current End Date: 2005-05-31
Potential End Date: 2005-05-31 00:00:00
Last Modified: 2011-09-23
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