DOE's $176M Inertial Confinement Fusion Target Contract Awarded to General Atomics
Contract Overview
Contract Amount: $176,138,047 ($176.1M)
Contractor: General Atomics
Awarding Agency: Department of Energy
Start Date: 2012-09-30
End Date: 2018-09-30
Contract Duration: 2,191 days
Daily Burn Rate: $80.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: RESEARCH AND DEVELOPMENT AND FABRICATION OF INERTIAL CONFINEMENT FUSION (ICF) TARGETS, COMPONENTS AND COMPONENT TECHNOLOGY (MAIN ICF TARGETS CONTRACT) FOR OFFICE OF INERTIAL CONFINEMENT FUSION - NA-112.
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92186
Plain-Language Summary
Department of Energy obligated $176.1 million to GENERAL ATOMICS for work described as: RESEARCH AND DEVELOPMENT AND FABRICATION OF INERTIAL CONFINEMENT FUSION (ICF) TARGETS, COMPONENTS AND COMPONENT TECHNOLOGY (MAIN ICF TARGETS CONTRACT) FOR OFFICE OF INERTIAL CONFINEMENT FUSION - NA-112. Key points: 1. Significant investment in advanced fusion research and development. 2. General Atomics is a key player in the fusion energy sector. 3. Potential for long-term energy independence and scientific advancement. 4. High-risk, high-reward R&D with uncertain but potentially transformative outcomes.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee structure for R&D can lead to cost overruns. Benchmarking is difficult due to the specialized nature of ICF targets, but the $176M value over six years suggests a substantial investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. Without competition, there's a reduced incentive for the contractor to minimize costs and potentially less transparency in price discovery.
Taxpayer Impact: Taxpayer funds are directed to a single contractor without competitive pressure, raising concerns about cost-effectiveness.
Public Impact
Advances critical research in fusion energy, a potential clean energy source. Supports specialized scientific and engineering jobs within the fusion sector. Contributes to national security through advanced technological development. Potential for breakthroughs that could reshape the global energy landscape.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Long duration R&D project
Positive Signals
- Supports critical national research objective
- Potential for significant scientific advancement
Sector Analysis
This contract falls under the R&D sector, specifically focusing on advanced physical sciences. Spending in this area is often characterized by high uncertainty and long development cycles, with significant government investment driven by strategic national interests.
Small Business Impact
The contract was not awarded to a small business. The specialized nature of ICF target fabrication likely requires large, established firms with extensive expertise and infrastructure.
Oversight & Accountability
Oversight is crucial for cost-plus contracts, especially sole-source awards. The Department of Energy's Office of Inspector General should monitor expenditures to ensure efficiency and prevent waste.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Lack of competitive bidding
- Cost-plus contract type may lead to cost overruns
- Long project duration increases risk exposure
- High R&D uncertainty
- No small business participation
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 $176.1 million to GENERAL ATOMICS. RESEARCH AND DEVELOPMENT AND FABRICATION OF INERTIAL CONFINEMENT FUSION (ICF) TARGETS, COMPONENTS AND COMPONENT TECHNOLOGY (MAIN ICF TARGETS CONTRACT) FOR OFFICE OF INERTIAL CONFINEMENT FUSION - NA-112.
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 $176.1 million.
What is the period of performance?
Start: 2012-09-30. End: 2018-09-30.
What is the projected return on investment for this significant R&D expenditure in fusion energy?
The return on investment for fusion energy R&D is inherently long-term and uncertain. Success could lead to transformative clean energy, but the timeline and feasibility remain significant challenges. The $176M investment is a bet on future breakthroughs, with potential economic and environmental benefits measured in decades, not years.
What are the primary risks associated with the sole-source award of this R&D contract?
The primary risks of a sole-source award include inflated costs due to lack of competition, potential for reduced contractor efficiency, and limited opportunities for innovative approaches from other potential bidders. Without competitive pressure, ensuring the best value for taxpayer dollars requires robust government oversight and performance management.
How effective is the Cost Plus Fixed Fee structure in managing R&D costs for complex projects like ICF targets?
The CPFF structure aims to provide incentives for cost control while allowing flexibility for R&D uncertainties. However, it can still lead to cost growth if initial estimates are inaccurate or scope changes significantly. Effective management relies on clear milestones, rigorous oversight, and strong negotiation of the fixed fee.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
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, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $183,350,129
Exercised Options: $183,350,129
Current Obligation: $176,138,047
Subaward Activity
Number of Subawards: 52
Total Subaward Amount: $4,651,311
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2012-09-30
Current End Date: 2018-09-30
Potential End Date: 2018-09-30 00:00:00
Last Modified: 2023-04-21
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