DoD's $10.9B Bettis/Knolls Nuclear Reactor R&D Contract Awarded to Bechtel Marine Propulsion Corporation
Contract Overview
Contract Amount: $10,928,730,010 ($10.9B)
Contractor: Bechtel Marine Propulsion Corporation
Awarding Agency: Department of Defense
Start Date: 2008-09-18
End Date: 2018-09-30
Contract Duration: 3,664 days
Daily Burn Rate: $3.0M/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: NUCLEAR REACTOR WORK AT THE BETTIS AND KNOLLS ATOMIC POWER LABORATORIES
Place of Performance
Location: WEST MIFFLIN, ALLEGHENY County, PENNSYLVANIA, 15122
Plain-Language Summary
Department of Defense obligated $10.93 billion to BECHTEL MARINE PROPULSION CORPORATION for work described as: NUCLEAR REACTOR WORK AT THE BETTIS AND KNOLLS ATOMIC POWER LABORATORIES Key points: 1. Significant investment in nuclear reactor research and development. 2. Bechtel Marine Propulsion Corporation is the sole awardee, raising questions about competition. 3. Long contract duration (over 10 years) suggests complex, ongoing needs. 4. High value indicates critical national security or energy infrastructure focus.
Value Assessment
Rating: questionable
The contract value of $10.9 billion over 10 years is substantial. Without comparable contracts for similar nuclear reactor R&D, assessing its pricing against benchmarks is difficult. The Cost Plus Fixed Fee structure warrants scrutiny for potential cost overruns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Despite being awarded as a definitive contract, the data indicates 'FULL AND OPEN COMPETITION'. However, the single awardee suggests a highly specialized requirement or a limited pool of qualified contractors. The pricing discovery mechanism relies on the Cost Plus Fixed Fee structure.
Taxpayer Impact: Taxpayer funds are directed towards advanced nuclear technology development, potentially yielding long-term benefits in energy or defense, but the cost-plus nature requires careful oversight to ensure value.
Public Impact
Advancement of nuclear reactor technology for potential defense or energy applications. Job creation and economic impact in Pennsylvania, where the laboratories are located. Long-term strategic investment in a critical scientific and engineering field. Potential for spin-off technologies benefiting the civilian sector. Ensuring national security through advanced nuclear propulsion capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus contract type can lead to cost overruns.
- Long contract duration may not reflect current market conditions.
- Lack of transparency on specific R&D outcomes.
- Potential for vendor lock-in due to specialized nature.
Positive Signals
- Significant investment in critical R&D.
- Supports advanced technological development.
- Long-term commitment to a strategic area.
- Potential for innovation and future applications.
Sector Analysis
This contract falls under Research and Development in Physical, Engineering, and Life Sciences. The high value and specialized nature suggest a significant government investment in a niche but critical scientific domain, likely related to national security or advanced energy solutions.
Small Business Impact
The contract is with Bechtel Marine Propulsion Corporation, a large entity. There is no indication of small business participation in this specific contract award, which is common for highly specialized, large-scale R&D projects.
Oversight & Accountability
The 'Department of Defense' and 'Department of the Navy' are the contracting agencies. Oversight would typically involve program managers, contracting officers, and potentially Inspector General reviews to ensure adherence to contract terms and responsible use of funds.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- High contract value.
- Cost-plus contract type.
- Long contract duration.
- Single awardee despite 'full and open' designation.
- Highly specialized R&D area.
Tags
research-and-development-in-the-physical, department-of-defense, pa, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.93 billion to BECHTEL MARINE PROPULSION CORPORATION. NUCLEAR REACTOR WORK AT THE BETTIS AND KNOLLS ATOMIC POWER LABORATORIES
Who is the contractor on this award?
The obligated recipient is BECHTEL MARINE PROPULSION CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $10.93 billion.
What is the period of performance?
Start: 2008-09-18. End: 2018-09-30.
What specific technological advancements or outcomes are expected from this $10.9 billion investment in nuclear reactor R&D over a decade?
The expected outcomes likely involve advancements in nuclear reactor design, efficiency, safety, and potentially new materials or operational protocols for naval propulsion or future energy applications. Specific deliverables would be detailed in the contract's SOW, focusing on research milestones, prototype development, and testing phases to push the boundaries of nuclear technology.
Given the 'FULL AND OPEN COMPETITION' designation but a single awardee, what factors limited the number of bidders for this specialized nuclear reactor R&D contract?
The limited number of bidders is likely due to the highly specialized expertise, security clearances, and infrastructure required for nuclear reactor research and development, particularly for defense applications. Only a few large corporations possess the necessary qualifications, facilities, and experience to undertake such a complex and high-value project, effectively narrowing the competitive pool.
How does the Cost Plus Fixed Fee (CPFF) contract structure ensure cost-effectiveness and prevent potential overruns in such a long-term, complex R&D initiative?
The CPFF structure aims to control costs by providing the contractor with a predetermined fixed fee, incentivizing efficiency. However, the 'cost-plus' element means the government covers all allowable costs. Effective oversight, stringent cost controls, and clear performance metrics are crucial to mitigate the risk of overruns and ensure the government receives value for its investment in this complex R&D.
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: FURNACE/STEAM/DRYING; NUCL REACTOR
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0002408R2103
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Bechtel Group, Inc. (UEI: 094878980)
Address: 50 BEALE ST, SAN FRANCISCO, CA, 94105
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $12,835,502,230
Exercised Options: $12,835,502,230
Current Obligation: $10,928,730,010
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2008-09-18
Current End Date: 2018-09-30
Potential End Date: 2018-09-30 00:00:00
Last Modified: 2019-05-16
More Contracts from Bechtel Marine Propulsion Corporation
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