DOE awards $72.8M contract for HEU down-blending, with Westinghouse Government Services as prime
Contract Overview
Contract Amount: $72,823,033 ($72.8M)
Contractor: Westinghouse Government Services LLC
Awarding Agency: Department of Energy
Start Date: 2015-12-03
End Date: 2022-12-02
Contract Duration: 2,556 days
Daily Burn Rate: $28.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::OT::IGF HIGHLY ENRICHED URANIUM (HEU) 10MT DOWN-BLEND FOR OFFICE OF FISSILE MATERIALS DISPOSITION - NA-26.
Place of Performance
Location: MADISON, WESTMORELAND County, PENNSYLVANIA, 15663
Plain-Language Summary
Department of Energy obligated $72.8 million to WESTINGHOUSE GOVERNMENT SERVICES LLC for work described as: IGF::OT::IGF HIGHLY ENRICHED URANIUM (HEU) 10MT DOWN-BLEND FOR OFFICE OF FISSILE MATERIALS DISPOSITION - NA-26. Key points: 1. Contract value represents a significant investment in nuclear material disposition. 2. The contract was awarded using full and open competition, suggesting a robust bidding process. 3. Fixed-price contract type aims to control costs and provide predictability. 4. The duration of the contract (2556 days) indicates a long-term need for these services. 5. The prime contractor, Westinghouse Government Services, has a substantial role in this specialized sector. 6. The contract falls under 'Other Basic Inorganic Chemical Manufacturing', highlighting its industrial nature.
Value Assessment
Rating: good
The contract value of $72.8 million over approximately seven years for the down-blending of 10 metric tons of Highly Enriched Uranium (HEU) appears reasonable given the specialized nature of the work and the materials involved. Benchmarking this specific service is challenging due to its niche market, but the fixed-price structure suggests an effort to manage costs effectively. The award to a single prime contractor, Westinghouse Government Services LLC, indicates a significant scope of work that likely requires extensive expertise and infrastructure.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating that multiple qualified vendors had the opportunity to bid. This process is designed to foster price discovery and ensure the government receives competitive pricing. The presence of multiple bidders, though not explicitly detailed in the provided data, is implied by the 'full and open' designation, which generally leads to a more favorable outcome for the government in terms of cost and innovation.
Taxpayer Impact: Full and open competition typically results in better value for taxpayers by driving down prices through market forces and encouraging a wider range of solutions.
Public Impact
The primary beneficiaries are the Department of Energy's Office of Fissile Materials Disposition (NA-26), which requires the HEU down-blending services. The services delivered involve the critical process of down-blending highly enriched uranium, a key step in nuclear material management and non-proliferation efforts. The geographic impact is primarily centered around the contractor's facilities in Pennsylvania, where the work is performed. This contract supports specialized jobs within the nuclear services and chemical manufacturing sectors, requiring highly skilled personnel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen technical challenges arise during the down-blending process.
- Dependence on a single prime contractor for a critical national security-related service.
- Long-term nature of the contract could lead to complacency or reduced urgency if not actively managed.
- The specialized nature of HEU handling may limit the pool of qualified personnel and increase labor costs.
Positive Signals
- Fixed-price contract type provides cost certainty for the government.
- Full and open competition suggests a competitive environment that should drive efficiency.
- Westinghouse Government Services LLC is a known entity in the nuclear services sector, implying relevant experience.
- The contract addresses a critical national security need for disposition of nuclear materials.
Sector Analysis
This contract falls within the 'Other Basic Inorganic Chemical Manufacturing' sector, a niche area focused on specialized chemical processes. The market for HEU down-blending services is highly specialized, with a limited number of qualified providers globally due to stringent safety, security, and regulatory requirements. The Department of Energy is a primary customer for such services, driven by national security and environmental stewardship mandates. Comparable spending benchmarks are difficult to establish due to the unique nature of HEU disposition.
Small Business Impact
The data indicates that small business participation (sb) was not a specific set-aside requirement for this contract (ss: false, sb: false). Therefore, the primary focus is on the prime contractor's capabilities. There is no explicit information regarding subcontracting plans with small businesses. The impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for support services.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of Energy's contracting officers and program managers. Given the nature of the work involving fissile materials, rigorous oversight mechanisms are expected, including regular progress reviews, quality assurance checks, and adherence to strict safety and security protocols. Transparency is usually maintained through contract reporting requirements. Inspector General jurisdiction would apply to potential fraud, waste, or abuse.
Related Government Programs
- Department of Energy - Fissile Materials Disposition
- Nuclear Material Management Programs
- Chemical Manufacturing Contracts
- National Nuclear Security Administration (NNSA) Programs
Risk Flags
- High-consequence material handling
- Long-term contract duration
- Specialized industry with limited competition
- Potential for environmental impact
Tags
department-of-energy, highly-enriched-uranium, nuclear-materials, down-blending, westinghouse-government-services, definitive-contract, firm-fixed-price, full-and-open-competition, pennsylvania, chemical-manufacturing, national-security, fissile-materials-disposition
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $72.8 million to WESTINGHOUSE GOVERNMENT SERVICES LLC. IGF::OT::IGF HIGHLY ENRICHED URANIUM (HEU) 10MT DOWN-BLEND FOR OFFICE OF FISSILE MATERIALS DISPOSITION - NA-26.
Who is the contractor on this award?
The obligated recipient is WESTINGHOUSE GOVERNMENT SERVICES LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $72.8 million.
What is the period of performance?
Start: 2015-12-03. End: 2022-12-02.
What is the historical spending pattern for HEU down-blending services by the Department of Energy?
Historical spending data for Highly Enriched Uranium (HEU) down-blending services by the Department of Energy (DOE) is not readily available in public databases for direct comparison to this specific $72.8 million contract. However, the DOE has a long-standing mission related to the disposition of nuclear materials, including HEU, stemming from Cold War-era programs and international non-proliferation efforts. Past initiatives have involved significant investments in facilities, research, and specialized services for material processing and storage. The scale and duration of contracts in this area are typically substantial due to the technical complexity and security requirements. This $72.8 million award represents a significant, but likely not unprecedented, investment in fulfilling the DOE's ongoing mandate for safe and secure management of fissile materials.
How does the cost per unit of HEU down-blended compare to industry benchmarks or previous contracts?
Determining a precise 'per-unit cost' for Highly Enriched Uranium (HEU) down-blending is complex and highly dependent on the specific metrics used (e.g., per kilogram, per metric ton, per batch) and the exact nature of the material and process. Publicly available data on HEU down-blending costs is scarce due to the sensitive and specialized nature of the work. This contract, valued at $72.8 million for 10 metric tons, suggests a cost of approximately $7.28 million per metric ton. Without access to detailed cost breakdowns or comparable contract data, it is difficult to definitively benchmark this figure against industry standards or previous government contracts. However, given the extreme safety, security, and regulatory overhead associated with handling HEU, costs are expected to be significantly higher than for standard chemical manufacturing processes.
What is Westinghouse Government Services LLC's track record with similar government contracts, particularly in nuclear material handling?
Westinghouse Government Services LLC, a subsidiary of Westinghouse Electric Company, has a well-established track record in the nuclear industry, including extensive experience with government contracts related to nuclear power, defense, and environmental remediation. While specific details on their HEU down-blending contracts may be proprietary, the parent company's long history in nuclear reactor design, fuel fabrication, and decommissioning suggests a deep understanding of the technical, safety, and regulatory requirements involved. Their involvement in government projects often spans decades, indicating a capacity to manage large-scale, complex, and high-stakes operations. This contract leverages that established expertise in handling sensitive nuclear materials and executing complex projects for federal agencies like the Department of Energy.
What are the primary risks associated with this HEU down-blending contract, and how are they being mitigated?
The primary risks associated with this Highly Enriched Uranium (HEU) down-blending contract are multifaceted. Technical risks include potential challenges in the chemical processes, equipment reliability, and achieving the desired isotopic composition. Safety and security risks are paramount, given the hazardous nature of HEU, requiring stringent protocols to prevent accidents, unauthorized access, or diversion. Environmental risks involve managing radioactive byproducts and ensuring compliance with all regulations. Contractual risks could include cost overruns if the fixed-price structure proves inadequate for unforeseen issues, or schedule delays. Mitigation strategies likely involve rigorous project planning, advanced process controls, comprehensive safety and security training, independent verification and validation, robust quality assurance programs, and close oversight by the Department of Energy.
How does this contract align with the Department of Energy's broader mission for nuclear material disposition and non-proliferation?
This contract directly aligns with the Department of Energy's (DOE) overarching mission to safely and securely manage and dispose of nuclear materials, including Highly Enriched Uranium (HEU), and to support non-proliferation efforts. The down-blending process converts HEU into a form that is less suitable for use in nuclear weapons, thereby enhancing national security and fulfilling international commitments. The Office of Fissile Materials Disposition (NA-26) is specifically tasked with these responsibilities. By awarding this contract, the DOE is actively executing its strategy to reduce the inventory of sensitive nuclear materials, making them more secure and less of a proliferation concern. This work is a critical component of the U.S. government's long-term strategy for managing the legacy of nuclear weapons programs.
Industry Classification
NAICS: Manufacturing › Basic Chemical Manufacturing › Other Basic Inorganic Chemical Manufacturing
Product/Service Code: NATURAL RESOURCES MANAGEMENT › NATURAL RESOURCES - OTHER SVCS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: DE-SOL-0008322
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Brookfield Business Partners L.P. (UEI: 815303055)
Address: 5801 BLUFF RD, HOPKINS, SC, 29061
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $333,973,494
Exercised Options: $333,973,494
Current Obligation: $72,823,033
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2015-12-03
Current End Date: 2022-12-02
Potential End Date: 2022-12-02 00:00:00
Last Modified: 2021-11-03
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