DOE awards $163M for Horizontal Steam Generator Work to BWXT Nuclear Operations Group
Contract Overview
Contract Amount: $163,352,015 ($163.4M)
Contractor: Bwxt Nuclear Operations Group, Inc.
Awarding Agency: Department of Energy
Start Date: 2008-08-15
End Date: 2015-04-30
Contract Duration: 2,449 days
Daily Burn Rate: $66.7K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIXED PRICE REDETERMINATION
Sector: Other
Official Description: HORIZONTAL STEAM GENERATOR WORK
Place of Performance
Location: LYNCHBURG, LYNCHBURG (CITY) County, VIRGINIA, 24505
State: Virginia Government Spending
Plain-Language Summary
Department of Energy obligated $163.4 million to BWXT NUCLEAR OPERATIONS GROUP, INC. for work described as: HORIZONTAL STEAM GENERATOR WORK Key points: 1. BWXT Nuclear Operations Group, Inc. secured a significant contract valued at $163.35 million. 2. The contract is for Plate Work Manufacturing, specifically Horizontal Steam Generator Work. 3. Awarded by the Department of Energy, this contract highlights specialized manufacturing capabilities. 4. The fixed-price redetermination contract type suggests potential price adjustments during its term. 5. The duration of 2449 days indicates a long-term project.
Value Assessment
Rating: questionable
The contract value is substantial, but without specific performance metrics or comparable contract data, assessing its value for money is difficult. The fixed-price redetermination structure introduces uncertainty in the final cost.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under limited competition, indicating that only a few sources were considered. This approach may limit price discovery and potentially lead to higher costs compared to a full and open competition.
Taxpayer Impact: The significant contract value suggests a considerable taxpayer investment. The limited competition raises concerns about whether taxpayers received the best possible price for these specialized services.
Public Impact
Specialized nuclear component manufacturing ensures critical infrastructure maintenance. Long-term contract provides stability for a key industrial supplier. Potential for cost overruns due to fixed-price redetermination contract type.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Fixed-price redetermination contract type
- Lack of detailed performance metrics
Positive Signals
- Award to established nuclear operations group
- Long contract duration
- Essential infrastructure support
Sector Analysis
This contract falls within the manufacturing sector, specifically related to specialized industrial equipment for the energy industry. Benchmarks for similar large-scale, specialized manufacturing contracts are often difficult to ascertain due to unique project requirements.
Small Business Impact
The contract was awarded to BWXT Nuclear Operations Group, Inc., a large corporation. There is no indication of small business participation in this specific award, suggesting limited opportunities for small businesses in this particular contract.
Oversight & Accountability
The Department of Energy is responsible for oversight. The fixed-price redetermination contract type necessitates careful monitoring of costs and performance to ensure accountability and prevent excessive spending.
Related Government Programs
- Plate Work Manufacturing
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Potential for cost overruns due to contract type
- Limited competition may reduce price competitiveness
- Lack of transparency on specific performance metrics
- No clear small business subcontracting plan indicated
Tags
plate-work-manufacturing, department-of-energy, va, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $163.4 million to BWXT NUCLEAR OPERATIONS GROUP, INC.. HORIZONTAL STEAM GENERATOR WORK
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 $163.4 million.
What is the period of performance?
Start: 2008-08-15. End: 2015-04-30.
What is the justification for limiting competition for this critical steam generator work?
The justification for limited competition is not explicitly provided in the data. Typically, such limitations are based on factors like unique capabilities, urgent needs, or existing infrastructure compatibility. Further investigation would be required to understand the specific rationale and ensure it aligns with procurement regulations and best practices for taxpayer value.
How will the 'redetermination' aspect of the contract be managed to control costs?
The 'redetermination' aspect implies that the initial price is subject to adjustment based on actual costs incurred. Effective management requires robust cost accounting, regular audits, and clear criteria for price adjustments. The Department of Energy must implement stringent oversight to ensure that any redetermined prices are fair and reflect genuine costs, not inefficiencies.
What are the long-term implications of this contract for the Department of Energy's operational readiness?
This contract ensures the continued availability and maintenance of critical Horizontal Steam Generators, which are vital for the Department of Energy's operations, likely related to power generation or research facilities. The long duration provides supply chain stability for these essential components, contributing to sustained operational readiness and mitigating risks associated with equipment failure or obsolescence.
Industry Classification
NAICS: Manufacturing › Architectural and Structural Metals Manufacturing › Plate Work Manufacturing
Product/Service Code: ENGINES AND TURBINES AND COMPONENT
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: DE-RP11-08PN38005
Offers Received: 1
Pricing Type: FIXED PRICE REDETERMINATION (A)
Evaluated Preference: NONE
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: $164,494,109
Exercised Options: $163,352,015
Current Obligation: $163,352,015
Contract Characteristics
Multi-Year Contract: Yes
Cost or Pricing Data: YES
Timeline
Start Date: 2008-08-15
Current End Date: 2015-04-30
Potential End Date: 2015-04-30 00:00:00
Last Modified: 2014-07-09
More Contracts from Bwxt Nuclear Operations Group, Inc.
- Manufacture of Naval Reactor Cores — $1.4B (Department of Energy)
- Manufacture Reactor Cores and Steam Generators for the Navy Nuclear Propulsion Program — $1.1B (Department of Energy)
- Naval Reactor Cores — $596.0M (Department of Energy)
- Manufacture of Reactor Cores — $482.0M (Department of Energy)
- Naval Reactor Cores — $403.7M (Department of Energy)
View all Bwxt Nuclear Operations Group, Inc. federal contracts →
Other Department of Energy Contracts
- Federal Contract — $48.1B (Lockheed Martin Corp)
- ,Ct::igf Contract Award De-Na0003525 to the National Technology&engineering Solutions of Sandia, LLC (ntess) for the Management and Operation of the Department of Energy, National Nuclear Security Administration's Sandia National Laboratories (SNL) — $41.7B (National Technology & Engineering Solutions of Sandia, LLC)
- Management and Operation of the OAK Ridge National Laboratory — $40.8B (Ut-Battelle LLC)
- TAS::89 0240::TAS This Performance-Based Management Contract (pbmc) IS for the Management and Operation of the Lawrence Livermore National Laboratory (llnl). the Contractor Shall, in Accordance With the Provisions of This Contract, Accomplish the Missions and Programs Assigned by the U.S. Department of Energy (DOE) and Manage and Operate the Laboratory. the Laboratory IS ONE of Does Office of Defense Program Multi-Program Laboratories. the Laboratory IS a Federally Funded Research and Development Institution (established in Accordance With the Federal Acquisition Regulation (FAR) Part 35 and Operated Under This Management and Operating (M&O) Contract, AS Defined in FAR 17.6 and Dear 917.6 — $40.8B (Lawrence Livermore National Security, LLC)
- M&O of Lanl BR of U of CA — $35.3B (Regents of the University of California, the)