DOE awards $46.4M to BWXT Government Group for Plate Work Manufacturing, spanning 8 years
Contract Overview
Contract Amount: $46,430,270 ($46.4M)
Contractor: Bwxt Government Group, Inc.
Awarding Agency: Department of Energy
Start Date: 1999-11-15
End Date: 2007-12-07
Contract Duration: 2,944 days
Daily Burn Rate: $15.8K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Place of Performance
Location: LYNCHBURG, LYNCHBURG (CITY) County, VIRGINIA, 24501
State: Virginia Government Spending
Plain-Language Summary
Department of Energy obligated $46.4 million to BWXT GOVERNMENT GROUP, INC. for work described as: Key points: 1. Significant contract value awarded to a single vendor. 2. Lack of competition raises questions about price discovery. 3. Long contract duration may indicate specialized needs or limited market. 4. Manufacturing sector focus with potential for broader industrial impact.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Without a competitive benchmark, assessing the value for money is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, suggesting a sole-source or limited competition scenario. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition for a substantial contract value means taxpayers may not have received the best possible price.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. The long duration of the contract (8 years) ties up significant federal funds. Potential for innovation and cost savings is reduced without market pressure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Long contract duration
Positive Signals
- Established vendor relationship
- Specific manufacturing capability
Sector Analysis
This contract falls within the manufacturing sector, specifically plate work. Spending in this area can be critical for national security or infrastructure projects, but benchmarks vary widely based on specific needs.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were excluded or if the scope of work inherently favored larger entities.
Oversight & Accountability
The 'VA' award type and 'DCA' award method suggest specific procurement pathways were used. Oversight would be crucial to ensure the Cost Plus Fixed Fee structure is managed effectively and that the government receives fair value.
Related Government Programs
- Plate Work Manufacturing
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Potential for overpayment due to lack of competition.
- Cost-plus contract type increases government's financial risk.
- Long contract duration limits flexibility and future cost-saving opportunities.
- Absence of small business participation noted.
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 $46.4 million to BWXT GOVERNMENT GROUP, INC.. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is BWXT GOVERNMENT 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 $46.4 million.
What is the period of performance?
Start: 1999-11-15. End: 2007-12-07.
What specific factors necessitated a limited competition award for this plate work manufacturing contract?
The limited competition award suggests that either unique technical requirements, proprietary technology, or a lack of qualified alternative vendors may have driven the decision. Understanding these specific factors is crucial to determine if the government's needs were truly best met through this procurement method, or if further market research could have identified additional competitive options.
How does the Cost Plus Fixed Fee structure impact the risk of cost overruns for this $46.4M contract?
Cost Plus Fixed Fee contracts shift some cost risk to the government, as the contractor is reimbursed for allowable costs plus a predetermined fixed fee. While the fee is fixed, the total cost can escalate if actual costs exceed projections. Robust oversight and clear definition of allowable costs are essential to mitigate the risk of significant cost overruns.
What is the long-term effectiveness and value proposition of this 8-year contract for the Department of Energy?
The long-term effectiveness hinges on the consistent delivery of quality plate work manufacturing and the contractor's ability to meet evolving DOE requirements over eight years. The value proposition is questionable without competitive pricing; the government must ensure the fixed fee adequately compensates BWXT for performance while the total cost remains justifiable against potential alternative solutions or market rates.
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 AVAILABLE FOR COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Mcdermott International, Inc. (UEI: 047758503)
Address: 2016 MT ATHOS RD, LYNCHBURG, VA, 05
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $190,862,949
Exercised Options: $190,862,949
Current Obligation: $46,430,270
Timeline
Start Date: 1999-11-15
Current End Date: 2007-12-07
Potential End Date: 2007-12-07 00:00:00
Last Modified: 2007-12-10
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