Thursday, November 02, 2006

Fermi Research Alliance wins 1.575 Billion contract.

The U.S. Department of Energy (DOE) has awarded a new $1.575 billion, five-year contract for management and operation of Fermi National Accelerator Laboratory (FNAL) to the Fermi Research Alliance, LLC (FRA), owned jointly by the University of Chicago (UChicago) and Universities Research Association, Inc. (URA).

“The quality of the new contract is a direct consequence of the competition process,” DOE Under Secretary for Science Dr. Raymond L. Orbach said today at a ceremony at Fermilab where he made the announcement of the contractor. “The partnership between UChicago and URA will enhance organizational depth and capability, promising improvements in performance and accountability."
The new contract contains a number of provisions intended to provide incentives for outstanding performance. The contract contains award term provisions under which the department may recognize outstanding performance through phased extensions of the contract for up to a total of 20 years, if the contractor meets specific performance levels established by DOE. The contract also contains incentive fee provisions under which FRA can earn a maximum total fee of up to $3.55 million a year for outstanding performance during the initial five-year term and the first five years of any award term extensions.

The initial contract term will be January 1, 2007, to December 31, 2011.

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