DOE awards $90.2M for Nuclear Reactor Steam Generators to BWXT Nuclear Operations Group
Contract Overview
Contract Amount: $90,241,271 ($90.2M)
Contractor: Bwxt Nuclear Operations Group, Inc.
Awarding Agency: Department of Energy
Start Date: 2004-10-20
End Date: 2013-06-11
Contract Duration: 3,156 days
Daily Burn Rate: $28.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE
Sector: Other
Official Description: NUCLEAR REACTOR STEAM GENERATORS
Place of Performance
Location: LYNCHBURG, LYNCHBURG (CITY) County, VIRGINIA, 24505
State: Virginia Government Spending
Plain-Language Summary
Department of Energy obligated $90.2 million to BWXT NUCLEAR OPERATIONS GROUP, INC. for work described as: NUCLEAR REACTOR STEAM GENERATORS Key points: 1. BWXT Nuclear Operations Group, Inc. secured a significant contract for nuclear reactor steam generators. 2. The contract was not competed, raising questions about potential price discovery. 3. The fixed-price incentive contract type aims to balance cost and performance. 4. This spending falls within the Plate Work Manufacturing sector.
Value Assessment
Rating: questionable
The contract value of $90.2M for nuclear reactor steam generators is difficult to benchmark without specific details on the scope and complexity of the generators. The lack of competition makes a direct pricing assessment challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for this substantial contract raises concerns about the potential for overpayment and inefficient use of taxpayer funds.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. The long duration of the contract (2004-2013) suggests a critical, long-term need for these components. The specialized nature of nuclear reactor components highlights the importance of reliable suppliers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment
- Long contract duration
Positive Signals
- Specialized technology
- Fixed-price incentive contract
Sector Analysis
This contract falls under the Plate Work Manufacturing sector, specifically for nuclear reactor components. Spending in this niche area is highly specialized and often involves limited suppliers due to stringent safety and technical requirements.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The specialized nature of nuclear components often favors large, established firms.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and adherence to contract terms. Transparency in the justification for not competing the contract is crucial.
Related Government Programs
- Plate Work Manufacturing
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for inflated costs
- Limited transparency in pricing
- Long contract duration without competition
Tags
plate-work-manufacturing, department-of-energy, va, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $90.2 million to BWXT NUCLEAR OPERATIONS GROUP, INC.. NUCLEAR REACTOR STEAM GENERATORS
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 $90.2 million.
What is the period of performance?
Start: 2004-10-20. End: 2013-06-11.
What was the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that cannot be met through competition. To ensure fair pricing, the agency likely conducted a price analysis based on historical data, cost estimates, or comparisons to similar, albeit potentially non-identical, procurements. However, without a competitive process, the rigor of price discovery is inherently limited.
What are the long-term risks associated with relying on a single supplier for critical nuclear reactor components?
Relying on a single supplier for critical nuclear reactor components poses significant risks, including potential supply chain disruptions, price escalation due to lack of competition, and reduced innovation. If the sole supplier faces production issues, financial instability, or decides to exit the market, it could severely impact the operation and maintenance of nuclear facilities, leading to costly delays or shutdowns.
How effectively did the fixed-price incentive contract structure manage costs and ensure performance for these specialized components?
The effectiveness of a fixed-price incentive contract hinges on the accuracy of the initial target cost and the negotiated incentive sharing formula. For specialized components like nuclear reactor steam generators, setting realistic targets can be challenging. While the incentive structure aims to reward cost savings and performance, the lack of competition might have weakened the contractor's motivation to aggressively control costs or improve performance beyond minimum requirements.
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
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: DE-AC11-04PN38005
Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
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: $90,241,271
Exercised Options: $90,241,271
Current Obligation: $90,241,271
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2004-10-20
Current End Date: 2013-06-11
Potential End Date: 2013-06-11 00:00:00
Last Modified: 2014-06-23
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