DOE's $3.38B R&D Contract with Bechtel Bettis Inc. Awarded in 1999, Ending 2009
Contract Overview
Contract Amount: $3,375,798,415 ($3.4B)
Contractor: Bechtel Bettis Incorporated
Awarding Agency: Department of Energy
Start Date: 1999-10-15
End Date: 2009-01-31
Contract Duration: 3,396 days
Daily Burn Rate: $994.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Place of Performance
Location: WEST MIFFLIN, ALLEGHENY County, PENNSYLVANIA, 15122
Plain-Language Summary
Department of Energy obligated $3.38 billion to BECHTEL BETTIS INCORPORATED for work described as: Key points: 1. Significant long-term investment in R&D, indicating a critical need. 2. Sole prime contractor for a major national lab, suggesting limited alternatives. 3. High contract value presents substantial financial risk and taxpayer exposure. 4. Focus on physical, engineering, and life sciences R&D.
Value Assessment
Rating: questionable
The contract's cost-plus-fixed-fee structure can incentivize spending. Without detailed cost breakdowns and performance metrics, assessing value for money is difficult. The long duration and high value warrant close scrutiny.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Awarded under full and open competition, suggesting a competitive process initially. However, the long duration and specialized nature may limit future competition.
Taxpayer Impact: The substantial $3.38 billion value represents a significant allocation of taxpayer funds towards research and development.
Public Impact
Impacts national security and technological advancement through critical R&D. Supports specialized scientific and engineering workforce development. Potential for spin-off technologies benefiting the public sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration increases risk of cost overruns and scope creep.
- Cost-plus-fixed-fee can lead to less incentive for cost efficiency.
- Lack of transparency on specific R&D outcomes and their ROI.
Positive Signals
- Addresses critical national R&D needs.
- Awarded through a competitive process.
- Long-term commitment fosters stability in research.
Sector Analysis
This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector (NAICS 541710). Spending in this sector is crucial for innovation but can be difficult to benchmark due to its specialized and often unique nature.
Small Business Impact
No indication of small business participation is provided in the data. Large, long-term R&D contracts often involve prime contractors who may subcontract, but direct small business involvement is not specified.
Oversight & Accountability
The Department of Energy's oversight is critical for managing such a large and long-term R&D contract. Regular performance reviews, cost audits, and milestone tracking are essential for accountability.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- High contract value ($3.38B)
- Long contract duration (1999-2009)
- Cost-plus-fixed-fee pricing structure
- Specialized R&D focus potentially limiting future competition
- Lack of specific performance outcome data
Tags
research-and-development-in-the-physical, department-of-energy, pa, dca, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $3.38 billion to BECHTEL BETTIS INCORPORATED. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is BECHTEL BETTIS INCORPORATED.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $3.38 billion.
What is the period of performance?
Start: 1999-10-15. End: 2009-01-31.
What specific R&D advancements or outcomes were achieved under this contract, and did they meet the initial objectives and taxpayer expectations?
Assessing the specific R&D advancements requires access to detailed project reports and performance metrics beyond the contract award data. Without this, it's difficult to definitively state if objectives were met or if taxpayer expectations for innovation and return on investment were satisfied. Further investigation into program outcomes is necessary.
Given the cost-plus-fixed-fee structure and long duration, what mechanisms were in place to ensure cost control and prevent potential inefficiencies?
Cost-plus-fixed-fee contracts, while providing flexibility for R&D, inherently carry risks of cost escalation. Effective oversight would involve rigorous auditing, regular performance reviews against defined milestones, and clear change control processes. The long duration necessitates proactive management to adapt to evolving research needs and maintain cost discipline.
How did the initial full and open competition translate into ongoing value and competitive pricing over the contract's ten-year lifespan?
While initially awarded competitively, the long-term nature of R&D projects can lead to a de facto sole-source situation if specialized knowledge or infrastructure is developed. Ongoing value assessment would require comparing the achieved R&D outcomes against alternative approaches or future contract renewals to ensure continued cost-effectiveness and alignment with evolving national priorities.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 6
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Parent Company: Bechtel Group, Inc. (UEI: 094878980)
Address: 814 PITTSBURGH MCKEESPORT BLVD, WEST MIFFLIN, PA, 12
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $3,637,129,994
Exercised Options: $3,656,901,415
Current Obligation: $3,375,798,415
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 1999-10-15
Current End Date: 2009-01-31
Potential End Date: 2011-05-19 00:00:00
Last Modified: 2011-05-20
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