Title 50War and National DefenseRelease 119-73not60

§2787 Cost-benefit Analyses for Competition of Management and Operating Contracts

Title 50 › Chapter 42— ATOMIC ENERGY DEFENSE PROVISIONS › Subchapter VIII— ADMINISTRATIVE MATTERS › Part A— Contracts › § 2787

Last updated Apr 5, 2026|Official source

Summary

The Administrator must, within 7 days after issuing a request for proposals to run an Administration facility, give the congressional defense committees a short, preliminary cost‑benefit briefing that covers the items listed below. If the Administrator awards a new management‑and‑operations contract, they must send a full report with those same items to the congressional defense committees no later than 30 days after the transition to the new contract is finished. The report must explain expected cost savings over the life of the contract with the analyses, assumptions, and sources used; any key limits or uncertainties; the costs of running the competition (including transition costs and any higher long‑term costs); any disruptions or delays to the mission; expected mission or operational benefits; whether the competition followed the Federal Acquisition Regulation rules for federally funded research and development centers, if that applies; how the Administrator decided to compete or extend and what work the contract covers; a detailed description of the analyses and their assumptions and limits; and any other matters the Administrator finds appropriate. The briefings and reports must follow the Department of Energy’s information‑quality rules and Government Accountability Office (GAO) and industry best practices for cost estimates. The Comptroller General will decide, with the congressional defense committees, whether to do an initial review, a comprehensive review, or both. If GAO does an initial review, it must brief the committees within 180 days after the report is submitted. If GAO does a comprehensive review, it must send it within 3 years and must compare actual savings to the estimates, note unexpected extra costs, compare actual disruptions to the estimates, check whether expected benefits were achieved, and consider other relevant matters. These briefing and reporting rules apply to requests for proposals issued or contracts awarded from fiscal year 2019 through 2032, but they do not apply to management‑and‑operations contracts for Naval Reactor facilities.

Full Legal Text

Title 50, §2787

War and National Defense — Source: USLM XML via OLRC

(a)Not later than 7 days after issuing a request for proposals for a contract to manage and operate a facility of the Administration, the Administrator shall brief the congressional defense committees on the preliminary assessment of the Administrator of the costs and benefits of the competition for the contract, including a preliminary assessment of the matters described in subsection (c) with respect to the contract.
(b)If the Administrator awards a new contract to manage and operate a facility of the Administration, the Administrator shall submit to the congressional defense committees a report that includes the matters described in subsection (c) with respect to the contract by not later than 30 days after the completion of the period required to transition to the contract.
(c)The matters described in this subsection, with respect to a contract, are the following:
(1)A clear and complete description of the cost savings the Administrator expects to result from the competition for the contract over the life of the contract, including associated analyses, assumptions, and information sources used to determine such expected cost savings.
(2)A description of any key limitations or uncertainties that could affect such costs savings, including costs savings that are anticipated but not fully known.
(3)The costs of the competition for the contract, including the immediate costs of conducting the competition, the costs of the transition to the contract from the previous contract, and any increased costs over the life of the contract.
(4)A description of any disruptions or delays in mission activities or deliverables resulting from the competition for the contract.
(5)A clear and complete description of the benefits expected by the Administrator with respect to mission performance or operations resulting from the competition.
(6)How the competition for the contract complied with the Federal Acquisition Regulation regarding federally funded research and development centers, if applicable.
(7)The factors considered and processes used by the Administrator to determine—
(A)whether to compete or extend the previous contract; and
(B)which activities at the facility should be covered under the contract rather than under a different contract.
(8)With respect to the matters included under paragraphs (1) through (7), a detailed description of the analyses conducted by the Administrator to reach the conclusions presented in the report, including any assumptions, limitations, and uncertainties relating to such conclusions.
(9)Any other matters the Administrator considers appropriate.
(d)Each briefing required by subsection (a) and report required by subsection (b) shall be prepared in accordance with—
(1)the information quality guidelines of the Department of Energy that are relevant to the clear and complete presentation of the matters described in subsection (c); and
(2)best practices of the Government Accountability Office and relevant industries for cost estimating, if appropriate.
(e)(1)The Comptroller General of the United States shall determine, in consultation with the congressional defense committees, whether to conduct an initial review, a comprehensive review, or both, of a report required by subsection (b).
(2)The Comptroller General shall provide any initial review of a report required by subsection (b) as a briefing to the congressional defense committees not later than 180 days after that report is submitted to the congressional defense committees.
(3)(A)The Comptroller General shall submit any comprehensive review of a report required by subsection (b) to the congressional defense committees not later than 3 years after that report is submitted to the congressional defense committees.
(B)A comprehensive review of a report required by subsection (b) shall include an assessment, based on the most current information available, of the following:
(i)The actual cost savings achieved compared to cost savings estimated under subsection (c)(1), and any increased costs incurred under the contract that were unexpected or uncertain at the time the contract was awarded.
(ii)Any disruptions or delays in mission activities or deliverables resulting from the competition for the contract compared to the disruptions and delays estimated under subsection (c)(4).
(iii)Whether expected benefits of the competition with respect to mission performance or operations have been achieved.
(iv)Such other matters as the Comptroller General considers appropriate.
(f)(1)The requirements for briefings under subsection (a) and reports under subsection (b) shall apply with respect to requests for proposals issued or contracts awarded, as applicable, by the Administrator during fiscal years 2019 through 2032.
(2)The requirements for briefings under subsection (a) and reports under subsection (b) shall not apply with respect to a management and operations contract for a Naval Reactor facility.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

2024—Subsec. (e). Pub. L. 118–159 amended subsec. (e) generally. Prior to amendment, subsec. (e) related to review of reports by Comptroller General of the United States. 2023—Subsec. (f)(1). Pub. L. 118–31 substituted “2032” for “2022”.

Reference

Citations & Metadata

Citation

50 U.S.C. § 2787

Title 50War and National Defense

Last Updated

Apr 5, 2026

Release point: 119-73not60