DOE Awards $338M for Naval Reactor Cores to BWXT Nuclear Operations Group
Contract Overview
Contract Amount: $338,441,328 ($338.4M)
Contractor: Bwxt Nuclear Operations Group, Inc.
Awarding Agency: Department of Energy
Start Date: 2000-11-15
End Date: 2008-12-31
Contract Duration: 2,968 days
Daily Burn Rate: $114.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: NAVAL REACTOR CORES
Place of Performance
Location: LYNCHBURG, LYNCHBURG (CITY) County, VIRGINIA, 24505
State: Virginia Government Spending
Plain-Language Summary
Department of Energy obligated $338.4 million to BWXT NUCLEAR OPERATIONS GROUP, INC. for work described as: NAVAL REACTOR CORES Key points: 1. Significant contract value of $338.4 million for specialized nuclear components. 2. Sole-source award indicates limited competition for this critical defense technology. 3. Long contract duration (2000-2008) suggests a stable, long-term relationship. 4. Focus on plate work manufacturing points to a specific, high-tech production niche.
Value Assessment
Rating: fair
The contract value of $338.4 million for naval reactor cores is substantial. Benchmarking is difficult due to the specialized nature of nuclear components and the sole-source award.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs compared to a competitive environment.
Taxpayer Impact: Taxpayer funds are committed to a single provider for a critical defense component, with limited opportunity for cost savings through competition.
Public Impact
Ensures continued operation and maintenance of naval nuclear propulsion systems. Supports national security by providing essential components for the U.S. Navy's fleet. Maintains a specialized industrial base for nuclear manufacturing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Long-term commitment
- High-value contract
- Critical national security component
Positive Signals
- Ensures supply chain for vital defense assets
- Supports specialized manufacturing capabilities
Sector Analysis
This contract falls within the Defense sector, specifically related to nuclear manufacturing for naval applications. Spending benchmarks are difficult to establish due to the unique nature of nuclear reactor components.
Small Business Impact
The data does not indicate any involvement of small businesses in this contract. The nature of naval reactor core manufacturing likely requires specialized facilities and expertise typically found in larger corporations.
Oversight & Accountability
The Department of Energy (DOE) is responsible for this contract. Oversight would focus on ensuring the quality, safety, and timely delivery of critical nuclear components for national security purposes.
Related Government Programs
- Plate Work Manufacturing
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Lack of competition may lead to higher costs.
- Long contract duration could mask inefficiencies.
- Reliance on a single supplier poses supply chain risk.
- High-value contract requires stringent oversight.
- Specialized nature of product limits alternative sourcing.
Tags
plate-work-manufacturing, department-of-energy, va, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $338.4 million to BWXT NUCLEAR OPERATIONS GROUP, INC.. NAVAL REACTOR CORES
Who is the contractor on this award?
The obligated recipient is BWXT NUCLEAR OPERATIONS GROUP, INC..
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $338.4 million.
What is the period of performance?
Start: 2000-11-15. End: 2008-12-31.
What is the justification for the sole-source award, and were alternative procurement strategies considered?
Sole-source awards are typically justified when only one responsible source can provide the required supplies or services. For naval reactor cores, this could be due to proprietary technology, unique manufacturing capabilities, or specific security requirements. The Department of Energy would have internal processes to document this justification and explore if any competitive elements could have been incorporated, even if the overall award was sole-source.
How is the fixed-price incentive contract structure being managed to control costs and ensure performance?
A Fixed Price Incentive (FPI) contract aims to share cost savings and overruns between the government and the contractor. The incentive targets are crucial for driving contractor performance and cost efficiency. The DOE would monitor key performance indicators, cost trends, and milestone achievements against the contract's established targets and share formulas to ensure value for money.
What are the long-term implications of this contract on the U.S. naval nuclear propulsion program's sustainment?
This contract is vital for the sustainment of the U.S. naval nuclear propulsion program, ensuring the availability of essential reactor components. Its long duration suggests a commitment to maintaining these capabilities, which is critical for national security. The ongoing supply of these components directly impacts the operational readiness and lifespan of the Navy's nuclear-powered fleet.
Industry Classification
NAICS: Manufacturing › Architectural and Structural Metals Manufacturing › Plate Work Manufacturing
Product/Service Code: FURNACE/STEAM/DRYING; NUCL REACTOR
Competition & Pricing
Extent Competed: NOT COMPETED
Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE (L)
Contractor Details
Parent Company: BWX Technologies, Inc. (UEI: 968037221)
Address: 2016 MOUNT ATHOS RD, LYNCHBURG, VA, 05
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $338,441,328
Exercised Options: $338,441,328
Current Obligation: $338,441,328
Timeline
Start Date: 2000-11-15
Current End Date: 2008-12-31
Potential End Date: 2008-12-31 00:00:00
Last Modified: 2014-06-23
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