Brookhaven National Laboratory operation contract awarded to Brookhaven Science Associates LLC for over $7.89 billion
Contract Overview
Contract Amount: $7,896,665,930 ($7.9B)
Contractor: Brookhaven Science Associates LLC
Awarding Agency: Department of Energy
Start Date: 1999-10-15
End Date: 2015-01-04
Contract Duration: 5,560 days
Daily Burn Rate: $1.4M/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: OPERATION OF BROOKHAVEN NATIONAL LABORATORY
Place of Performance
Location: UPTON, SUFFOLK County, NEW YORK, 11973
State: New York Government Spending
Plain-Language Summary
Department of Energy obligated $7.90 billion to BROOKHAVEN SCIENCE ASSOCIATES LLC for work described as: OPERATION OF BROOKHAVEN NATIONAL LABORATORY Key points: 1. Contract value represents significant long-term investment in scientific research infrastructure. 2. Operation of a national laboratory involves complex management and scientific oversight. 3. The contract's duration suggests a stable, long-term relationship with the contractor. 4. Performance is likely measured against scientific output, operational efficiency, and safety standards. 5. This contract positions the Department of Energy as a key funder of advanced scientific endeavors. 6. The cost-plus award fee structure incentivizes performance beyond basic requirements.
Value Assessment
Rating: good
The total contract value of over $7.89 billion for the operation of Brookhaven National Laboratory is substantial, reflecting the scale and complexity of managing a major research facility. Benchmarking this against similar contracts for national laboratory operations is challenging due to the unique nature of each facility. However, the cost-plus award fee (CPAF) structure suggests a focus on incentivizing performance and achieving specific scientific and operational goals, which can be a value-for-money approach if well-managed. The contract's duration of over 15 years (from award to end date) indicates a long-term commitment, and the total value spread over this period suggests a reasonable annual expenditure for the services provided.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete for the management of Brookhaven National Laboratory. This process is designed to ensure that the most qualified contractor is selected at a competitive price. The fact that it was competed openly suggests that the Department of Energy sought to leverage market forces to secure the best possible outcome for managing this critical scientific asset.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more efficient operations and potentially lower costs compared to sole-source or limited competition awards.
Public Impact
The primary beneficiaries are the scientific community, which gains access to world-class research facilities and capabilities at Brookhaven National Laboratory. The contract supports the delivery of cutting-edge scientific research across various disciplines, including physics, chemistry, biology, and energy science. The geographic impact is centered in Upton, New York, where the laboratory is located, but the scientific discoveries and technological advancements have national and global implications. The contract sustains a significant workforce of scientists, engineers, technicians, and support staff, contributing to the local and national economy.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in a cost-plus contract structure if not rigorously monitored.
- Ensuring continued scientific innovation and relevance over the long contract term.
- Managing the complex safety and security requirements inherent in operating a national laboratory.
Positive Signals
- The use of a Cost Plus Award Fee (CPAF) structure incentivizes high performance and achievement of specific goals.
- Full and open competition suggests a robust selection process aimed at securing the best value.
- The long contract duration provides stability for research planning and execution.
Sector Analysis
The operation of national laboratories falls within the broader scientific research and development sector, specifically focusing on large-scale, multidisciplinary research infrastructure. This sector is characterized by significant government investment, long-term projects, and the pursuit of fundamental scientific breakthroughs. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of each national laboratory, but the scale of this contract is consistent with the substantial resources required to maintain and operate such advanced scientific facilities.
Small Business Impact
This contract does not appear to have a specific small business set-aside. However, the prime contractor, Brookhaven Science Associates LLC, may engage small businesses as subcontractors for various goods and services required for the laboratory's operation. The extent of small business participation would depend on the subcontracting plan developed by the prime contractor and the specific needs of the laboratory's operations.
Oversight & Accountability
Oversight for this contract is primarily the responsibility of the Department of Energy, which manages the national laboratory system. Mechanisms likely include regular performance reviews, audits, and adherence to strict programmatic and financial reporting requirements. The CPAF structure itself implies a performance-based oversight approach. Transparency is generally maintained through public reporting on the laboratory's scientific achievements and operational status, though specific contract details may be subject to standard government contracting confidentiality.
Related Government Programs
- Other National Laboratory Operations Contracts
- Department of Energy Research and Development Programs
- Scientific Facilities Management Contracts
- Advanced Scientific Research Funding
Risk Flags
- Cost Overrun Potential
- Performance Measurement Complexity
- Long-Term Infrastructure Management
- Scientific Relevance Maintenance
Tags
department-of-energy, national-laboratory, r&d, scientific-research, full-and-open-competition, definitive-contract, cost-plus-award-fee, new-york, large-contract, professional-scientific-technical-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $7.90 billion to BROOKHAVEN SCIENCE ASSOCIATES LLC. OPERATION OF BROOKHAVEN NATIONAL LABORATORY
Who is the contractor on this award?
The obligated recipient is BROOKHAVEN SCIENCE ASSOCIATES LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $7.90 billion.
What is the period of performance?
Start: 1999-10-15. End: 2015-01-04.
What is the track record of Brookhaven Science Associates LLC in managing national laboratories?
Brookhaven Science Associates LLC (BSA) was formed specifically to manage Brookhaven National Laboratory (BNL). BSA is a partnership between Stony Brook University and Battelle Memorial Institute. Both parent organizations have extensive experience in research, development, and management of large scientific and technical facilities. Stony Brook University is a major research university, and Battelle is a non-profit applied science and technology development company with a long history of managing national laboratories for the Department of Energy, including Pacific Northwest National Laboratory. This combined expertise suggests a strong foundation for managing BNL effectively, focusing on both scientific advancement and operational excellence.
How does the value of this contract compare to other national laboratory operations?
The total contract value of over $7.89 billion for the operation of Brookhaven National Laboratory over its duration is substantial and aligns with the significant investment required for managing major national research facilities. For context, other large national laboratory contracts, such as those for Los Alamos National Laboratory or Oak Ridge National Laboratory, also represent multi-billion dollar commitments over extended periods. The specific value is influenced by the size, scope of research, and unique capabilities of each laboratory. BNL's focus on areas like nuclear and high-energy physics, materials science, and energy research necessitates specialized infrastructure and expertise, contributing to its overall contract value.
What are the primary risks associated with operating a national laboratory under this contract?
Key risks include ensuring the safety and security of personnel and the public, given the nature of research conducted at BNL (e.g., nuclear science). There's also the risk of scientific obsolescence if the laboratory fails to adapt to new research frontiers or maintain state-of-the-art facilities. Operational risks involve maintaining complex infrastructure, managing a large workforce, and adhering to stringent environmental regulations. Financial risks, particularly with a cost-plus award fee structure, include potential cost overruns if not managed diligently. Finally, maintaining public trust and support for the laboratory's mission and operations is an ongoing risk.
How effective is the Cost Plus Award Fee (CPAF) structure in ensuring program effectiveness for BNL?
The CPAF structure is designed to incentivize the contractor to achieve specific performance objectives beyond basic contract requirements. For Brookhaven National Laboratory, this means BSA is motivated not only to operate the facility efficiently and safely but also to excel in areas like scientific output, technological innovation, and stakeholder engagement. The 'award fee' portion is determined by the government's assessment of the contractor's performance against pre-defined criteria. This structure can be highly effective in driving performance and achieving strategic goals, provided the performance criteria are well-defined, measurable, and aligned with the Department of Energy's objectives for BNL. It encourages proactive management and continuous improvement.
What are the historical spending patterns for Brookhaven National Laboratory operations?
Historical spending on Brookhaven National Laboratory operations has consistently been in the hundreds of millions of dollars annually, reflecting its status as a major research institution. Prior to this contract, management of BNL has been handled by different entities, but the overall funding levels have remained significant due to the critical scientific missions. The $7.89 billion over the contract's lifespan represents a sustained, long-term investment. Annual spending would fluctuate based on specific research initiatives, infrastructure upgrades, and operational needs, but the overall trend indicates a substantial and continuous federal commitment to supporting the laboratory's functions.
What is the significance of the 'All Other Professional, Scientific, and Technical Services' NAICS code?
The North American Industry Classification System (NAICS) code 541990, 'All Other Professional, Scientific, and Technical Services,' is a broad category used when a more specific code does not accurately describe the primary business activity. For the operation of Brookhaven National Laboratory, this code likely encompasses a wide array of services including scientific research, laboratory management, technical consulting, data analysis, and specialized scientific support that doesn't fit neatly into more defined categories like engineering services or research and development in the physical, engineering, and life sciences. It reflects the multidisciplinary and complex nature of managing a national laboratory.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Contractor Details
Address: 40 BROOKHAVEN AVE BLDG 460, UPTON, NY, 11973
Business Categories: Category Business, Limited Liability Corporation, Nonprofit Organization, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $6,346,417,285
Exercised Options: $6,346,417,285
Current Obligation: $7,896,665,930
Actual Outlays: $-9,112
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 1999-10-15
Current End Date: 2015-01-04
Potential End Date: 2015-01-04 00:00:00
Last Modified: 2019-06-27
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