BLUF: Fermi Forward Discovery Group, LLC has drawn $2,404,483,872.69 in obligations under its Department of Energy (DOE) contract to manage and operate the Fermi National Accelerator Laboratory (Fermilab), a deal trade press has reported carries a ceiling of up to $5 billion over 20 years.

DOE awarded the management-and-operating contract to Fermi Forward Discovery Group on October 1, 2024, following a full-and-open competition that drew three offers. The base period of performance runs January 1, 2025 through December 31, 2029, according to DOE's Office of Science and USAspending's federal award record.

Why it matters: The award illustrates DOE's continued reliance on nonprofit-university-led consortia, paired with a commercial operating partner, to run its national laboratory system under cost-reimbursement vehicles. The contract's structure — a five-year base term with a performance-based award-term incentive DOE says can extend the deal up to 15 additional years — gives the incumbent a long runway to build subcontracting relationships, which matters directly to the 18 subcontractors already sharing $67,549,027.84 in subawards under the deal, per USAspending.

By the numbers:

• Total obligations to date: $2,404,483,872.69 (USAspending, records through July 24, 2026)
• Base and exercised options value: $2,413,742,501.55
• Reported potential contract ceiling: up to $5 billion over the full term (GovCon Wire, Washington Technology)
• Base period of performance: January 1, 2025 – December 31, 2029; DOE says an award-term incentive can extend it up to 15 additional years (20-year maximum)
• NAICS code: 541715 (Research and Development in the Physical, Engineering, and Life Sciences); Product/Service Code: M1HA
• Contract type: Cost-Plus-Award-Fee, full and open competition, 3 offers received
• Subawards to date: 18 subcontracts totaling $67,549,027.84

The awardee is a joint venture led by the University of Chicago and Universities Research Association Inc., with Amentum Environment & Energy Inc. and Longenecker & Associates as partners, according to DOE's Office of Science. Fermilab operates a 6,800-acre federally owned site in Batavia, Illinois, employs roughly 2,100 people, and runs on an annual budget of about $614 million, per the same DOE announcement.

Source: DOE Office of Science | USAspending award record