DOE awards $150M to General Atomics for Fusion Target R&D, a sole-source contract
Contract Overview
Contract Amount: $149,517,992 ($149.5M)
Contractor: General Atomics
Awarding Agency: Department of Energy
Start Date: 2006-06-01
End Date: 2012-10-31
Contract Duration: 2,344 days
Daily Burn Rate: $63.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: R&D AND FABRICATION OF INERTIAL CONFINEMENT FUSION TARGETS AND TARGET TECHNOLOGY DEVELOPMENT SUPPORT
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92121
Plain-Language Summary
Department of Energy obligated $149.5 million to GENERAL ATOMICS for work described as: R&D AND FABRICATION OF INERTIAL CONFINEMENT FUSION TARGETS AND TARGET TECHNOLOGY DEVELOPMENT SUPPORT Key points: 1. Significant investment in advanced fusion technology. 2. General Atomics is a key player in fusion research. 3. Sole-source award raises questions about competition and price. 4. R&D spending in physical sciences is substantial.
Value Assessment
Rating: questionable
The contract value of $149.5M over 6 years for R&D is substantial. Without competitive bidding, it's difficult to assess if the pricing is optimal compared to potential alternatives or market rates for similar specialized R&D services.
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 for taxpayers as there was no market pressure to drive down the price.
Taxpayer Impact: The lack of competition in this large R&D contract may result in a higher cost to taxpayers than if multiple vendors had vied for the work.
Public Impact
Advancement of inertial confinement fusion technology, a key area for future energy. Potential for breakthroughs in energy production and scientific understanding. Long-term government investment in a critical scientific field.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Lack of transparency in price justification.
- No small business participation noted.
Positive Signals
- Supports critical R&D in fusion energy.
- Invests in a potentially transformative technology.
Sector Analysis
This contract falls under Research and Development in Physical, Engineering, and Life Sciences (NAICS 541710). Federal spending in this sector is often characterized by long-term investments in fundamental and applied research, with significant funding allocated to areas like energy and defense.
Small Business Impact
The data indicates no small business participation in this contract. Given the specialized nature of fusion R&D, it's possible that few small businesses possess the required expertise, but this should be periodically reviewed.
Oversight & Accountability
The sole-source nature of this award warrants careful oversight to ensure the contractor is meeting all performance objectives and that the pricing remains reasonable throughout the contract's duration.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Sole-source award.
- Lack of competition.
- Cost-plus contract type.
- No small business participation.
- Long contract duration.
Tags
research-and-development-in-the-physical, department-of-energy, ca, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $149.5 million to GENERAL ATOMICS. R&D AND FABRICATION OF INERTIAL CONFINEMENT FUSION TARGETS AND TARGET TECHNOLOGY DEVELOPMENT SUPPORT
Who is the contractor on this award?
The obligated recipient is GENERAL ATOMICS.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $149.5 million.
What is the period of performance?
Start: 2006-06-01. End: 2012-10-31.
What is the justification for the sole-source award, and has it been reviewed for accuracy and necessity?
The justification for a sole-source award typically involves unique capabilities, critical national security needs, or lack of viable alternatives. For this contract, the specific justification from the Department of Energy would need to be examined to understand why General Atomics was the only source considered. Regular reviews are essential to ensure such awards remain appropriate and don't stifle potential competition in the future.
How does the cost-plus-fixed-fee structure impact the contractor's incentive to control costs on this R&D project?
A Cost-Plus-Fixed-Fee (CPFF) contract covers allowable costs plus a fixed fee. While the fixed fee provides some incentive for the contractor to manage costs efficiently to maximize profit, the primary cost risk remains with the government. This structure is common in R&D where scope can be uncertain, but it requires robust oversight to prevent cost overruns.
What are the key performance indicators (KPIs) for this contract, and how is progress being measured towards fusion technology development?
Key performance indicators for this contract would likely focus on milestones related to target fabrication precision, material science advancements, diagnostic development, and experimental results from fusion experiments. The Department of Energy's oversight team would be responsible for tracking progress against these defined metrics to ensure the contractor is meeting its obligations and advancing the state of fusion technology.
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: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 3550 GENERAL ATOMICS CT, SAN DIEGO, CA, 92121
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $149,517,992
Exercised Options: $149,517,992
Current Obligation: $149,517,992
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2006-06-01
Current End Date: 2012-10-31
Potential End Date: 2012-10-31 00:00:00
Last Modified: 2018-11-06
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