DOE awards $35.6M for naval reactor core disassembly and recovery to BWXT Nuclear Operations Group
Contract Overview
Contract Amount: $35,659,316 ($35.7M)
Contractor: Bwxt Nuclear Operations Group, Inc.
Awarding Agency: Department of Energy
Start Date: 2012-03-09
End Date: 2015-06-30
Contract Duration: 1,208 days
Daily Burn Rate: $29.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIXED PRICE REDETERMINATION
Sector: Other
Official Description: DISASSEMBLY AND RECOVERY OF NAVAL REACTOR CORES
Place of Performance
Location: LYNCHBURG, LYNCHBURG (CITY) County, VIRGINIA, 24505
State: Virginia Government Spending
Plain-Language Summary
Department of Energy obligated $35.7 million to BWXT NUCLEAR OPERATIONS GROUP, INC. for work described as: DISASSEMBLY AND RECOVERY OF NAVAL REACTOR CORES Key points: 1. Contract awarded on a fixed-price redetermination basis, suggesting potential for cost adjustments. 2. Sole-source award indicates limited competition, potentially impacting price negotiation. 3. The contract duration of 1208 days spans over three years, requiring sustained oversight. 4. The North American Industry Classification System (NAICS) code 332313 points to specialized plate work manufacturing. 5. The contract was awarded by the Department of Energy, with the same agency acting as the servicing agency. 6. The award value of $35.6 million represents a significant investment in nuclear material handling.
Value Assessment
Rating: fair
The contract's fixed-price redetermination structure allows for adjustments, which can be a risk if costs escalate beyond initial estimates. Benchmarking this specific service is challenging due to its specialized nature. However, the award value of $35.6 million for a multi-year project involving complex nuclear materials handling suggests a substantial commitment. Without comparable contract data for similar reactor core disassembly and recovery services, a precise value-for-money assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning that only one vendor, BWXT Nuclear Operations Group, Inc., was solicited. This approach is typically used when a unique capability or specialized expertise is required, and competition is not feasible or practical. The lack of competition means that the government did not benefit from a bidding process that could have driven down prices through market forces.
Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. The government's ability to negotiate the best possible price was limited in this sole-source scenario.
Public Impact
The primary beneficiaries are the Department of Energy and the U.S. Navy, who rely on the safe and secure handling of naval reactor cores. The services delivered include the critical processes of disassembling and recovering materials from naval reactor cores. The geographic impact is primarily within the United States, specifically at facilities managed by BWXT Nuclear Operations Group. This contract supports specialized jobs in nuclear engineering, material handling, and safety protocols.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition.
- Fixed-price redetermination can lead to cost overruns if not closely managed.
- Specialized nature of work may limit contractor pool and increase reliance on incumbent.
- Long contract duration requires sustained oversight to ensure performance and cost control.
Positive Signals
- BWXT Nuclear Operations Group likely possesses specialized expertise for this critical task.
- The Department of Energy's selection of a specific contractor suggests confidence in their capabilities.
- The contract addresses a vital national security need related to nuclear materials.
Sector Analysis
This contract falls within the specialized sector of nuclear services, specifically related to the handling and processing of naval reactor components. The market for such services is highly concentrated due to stringent safety, security, and regulatory requirements, as well as the need for highly specialized facilities and personnel. Companies like BWXT Nuclear Operations Group are key players in this niche industry, often holding long-term relationships with government entities for these critical functions. Comparable spending benchmarks are difficult to establish due to the unique nature of naval reactor core disassembly and recovery.
Small Business Impact
This contract was not awarded to a small business, nor does it appear to have specific small business set-aside provisions. Given the highly specialized and sensitive nature of naval reactor core disassembly and recovery, it is unlikely that small businesses would possess the necessary qualifications, facilities, or security clearances to perform this work. Subcontracting opportunities for small businesses are not explicitly detailed but would likely be limited to support services rather than the core technical functions.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of Energy, given they are both the awarding and servicing agency. The fixed-price redetermination contract type necessitates close monitoring of costs and performance to ensure value for money. Accountability measures would be embedded in the contract's terms and conditions, including performance metrics and reporting requirements. Transparency may be limited due to the sensitive nature of nuclear materials and national security implications.
Related Government Programs
- Naval Nuclear Propulsion Program
- Department of Energy - Nuclear Energy
- Defense Nuclear Facilities Safety Board
- Nuclear Waste Management
Risk Flags
- Sole-source award
- Fixed-price redetermination contract type
- Specialized and niche service area
- Potential for cost escalation
Tags
department-of-energy, naval-reactors, nuclear-materials, sole-source, fixed-price-redetermination, bwxt-nuclear-operations-group, plate-work-manufacturing, virginia, large-contract, national-security
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $35.7 million to BWXT NUCLEAR OPERATIONS GROUP, INC.. DISASSEMBLY AND RECOVERY OF NAVAL REACTOR CORES
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 $35.7 million.
What is the period of performance?
Start: 2012-03-09. End: 2015-06-30.
What is BWXT Nuclear Operations Group's track record with similar naval reactor contracts?
BWXT Nuclear Operations Group, Inc. has a long-standing history and extensive experience in handling nuclear materials, including those associated with naval reactors. They are a primary contractor for the U.S. Navy's nuclear propulsion program, involved in fuel fabrication, refueling, and defueling of submarines and aircraft carriers. Their expertise extends to the complex processes of disassembly, recovery, and management of spent nuclear fuel and reactor components. This specific contract leverages their established capabilities and infrastructure, which have been developed over decades of supporting the naval nuclear program. Their performance history in this highly specialized and regulated field is generally considered strong, marked by adherence to stringent safety and security protocols.
How does the $35.6 million award compare to historical spending on naval reactor core disassembly?
Direct historical spending comparisons for naval reactor core disassembly and recovery are challenging to ascertain publicly due to the classified and specialized nature of the work. The $35.6 million award for a multi-year period (2012-2015) represents a significant investment. However, without access to detailed historical contract data for similar sole-source procurements or specific project scopes, it's difficult to benchmark this amount effectively. Factors such as the number of cores processed, the complexity of disassembly, the specific reactor types, and the required recovery processes would heavily influence cost. This award should be viewed in the context of the unique capabilities required and the long-term strategic importance of managing these nuclear materials.
What are the primary risks associated with this sole-source contract for naval reactor core disassembly?
The primary risks associated with this sole-source contract are centered around cost control and potential lack of innovation. Since only one vendor was solicited, there is an inherent risk that the government may not have achieved the most competitive pricing possible. The fixed-price redetermination contract type introduces further risk, as costs can be adjusted, potentially leading to expenditures exceeding initial projections if not rigorously managed. Additionally, the absence of competition can reduce the incentive for the contractor to seek cost-saving efficiencies or innovative solutions. Ensuring robust oversight and performance management is crucial to mitigate these risks and ensure value for taxpayer dollars.
How effective are the oversight mechanisms for this type of specialized nuclear contract?
Oversight mechanisms for specialized nuclear contracts, such as this one for naval reactor core disassembly, are typically robust and multi-layered, involving both the contracting agency (Department of Energy) and potentially other regulatory bodies. The fixed-price redetermination structure necessitates detailed financial oversight, including audits and reviews of cost data. Performance oversight would involve monitoring adherence to strict safety protocols, environmental regulations, and project timelines. Given the sensitive nature of nuclear materials, stringent security protocols are also paramount. While specific details of oversight are often not public, the inherent risks and regulatory environment demand a high level of scrutiny to ensure safety, security, and responsible use of funds.
What is the historical spending pattern for BWXT Nuclear Operations Group with the Department of Energy?
BWXT Nuclear Operations Group has a long and substantial history of contracting with the Department of Energy, particularly concerning nuclear materials management and naval reactor programs. Their involvement spans decades, encompassing activities such as nuclear fuel production, reactor servicing, and the handling of nuclear waste and components. Historical spending data would likely show consistent, significant contract awards reflecting their specialized capabilities and the ongoing needs of the U.S. nuclear enterprise. This specific $35.6 million contract is one component of a broader, ongoing relationship between BWXT and the DOE, underscoring their critical role in national nuclear security and energy infrastructure.
Industry Classification
NAICS: Manufacturing › Architectural and Structural Metals Manufacturing › Plate Work Manufacturing
Product/Service Code: FURNACE/STEAM/DRYING; NUCL REACTOR
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: DE-SOL-NR00005
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, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $68,420,849
Exercised Options: $35,659,316
Current Obligation: $35,659,316
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2012-03-09
Current End Date: 2015-06-30
Potential End Date: 2015-06-30 00:00:00
Last Modified: 2014-05-12
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