DOE's $97M Reactor Core Contract Awarded to BWXT Nuclear Operations Group, Inc
Contract Overview
Contract Amount: $97,175,001 ($97.2M)
Contractor: Bwxt Nuclear Operations Group, Inc.
Awarding Agency: Department of Energy
Start Date: 1999-11-15
End Date: 2012-10-01
Contract Duration: 4,704 days
Daily Burn Rate: $20.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE
Sector: Other
Official Description: REACTOR CORES
Place of Performance
Location: LYNCHBURG, LYNCHBURG (CITY) County, VIRGINIA, 24505
State: Virginia Government Spending
Plain-Language Summary
Department of Energy obligated $97.2 million to BWXT NUCLEAR OPERATIONS GROUP, INC. for work described as: REACTOR CORES Key points: 1. Significant contract value for specialized nuclear components. 2. BWXT Nuclear Operations Group, Inc. is a key player in this niche sector. 3. Limited competition raises questions about price discovery and potential overspending. 4. The contract spans a long duration, indicating a sustained need for these components.
Value Assessment
Rating: questionable
The contract value of $97,175,001 for reactor cores is substantial. Without comparable contract data or a competitive bidding process, it is difficult to assess if this price is reasonable or if it represents a fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition award. This approach can lead to higher prices due to the lack of market pressure and potentially less innovative solutions.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these essential reactor components.
Public Impact
Ensures continued operation and maintenance of critical nuclear infrastructure. Supports national security and energy production capabilities. Potential for long-term reliance on a single supplier for specialized parts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Long contract duration
- Sole-source award
Positive Signals
- Essential for nuclear operations
- Experienced contractor
Sector Analysis
The Department of Energy's procurement of reactor cores falls within the specialized manufacturing sector, specifically related to nuclear technology. Spending in this area is highly specialized and often involves a limited number of qualified contractors.
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 reactor core manufacturing typically requires extensive expertise and facilities.
Oversight & Accountability
The Department of Energy is responsible for overseeing this contract. The lack of competition suggests that robust oversight is crucial to ensure fair pricing and performance.
Related Government Programs
- Plate Work Manufacturing
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Potential for inflated costs due to lack of competition.
- Risk of contractor lock-in and reduced innovation.
- Long contract duration may not reflect evolving technological needs.
- Limited transparency in pricing and performance metrics.
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 $97.2 million to BWXT NUCLEAR OPERATIONS GROUP, INC.. 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 $97.2 million.
What is the period of performance?
Start: 1999-11-15. End: 2012-10-01.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or the absence of other qualified sources. For specialized components like reactor cores, the government may determine that only one contractor possesses the necessary expertise, facilities, and security clearances to fulfill the requirement effectively and safely.
What are the risks associated with a long-term, sole-source contract for critical components?
Long-term, sole-source contracts for critical components carry risks such as price escalation without competitive pressure, potential for complacency from the contractor, and a lack of incentive for innovation. There's also a risk of vendor lock-in, making it difficult to switch suppliers even if better options emerge later.
How does the government ensure value for money in sole-source procurements of this magnitude?
In sole-source procurements, value for money is typically ensured through rigorous cost analysis, benchmarking against historical data or similar commercial items, and negotiation. The contracting agency must demonstrate that the negotiated price is fair and reasonable, often requiring detailed cost breakdowns and justification from the contractor.
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: $366,951,801
Exercised Options: $366,951,801
Current Obligation: $97,175,001
Timeline
Start Date: 1999-11-15
Current End Date: 2012-10-01
Potential End Date: 2012-10-01 00:00:00
Last Modified: 2014-06-23
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