U.S. Department of Energy and Kairos Power Execute Novel Performance-Based, Fixed-Price Milestone Contract

FOR IMMEDIATE RELEASE U.S. DEPARTMENT OF ENERGY AND KAIROS POWER EXECUTE NOVEL PERFORMANCE-BASED, FIXED-PRICE MILESTONE CONTRACT TO ENABLE INVESTMENT IN ADVANCED REACTOR DEMONSTRATION PROJECT WASHINGTON, D.C. – February 21, 2024 – The U.S. Department of Energy (DOE) and Kairos Power have signed a Technology Investment Agreement to implement an Advanced Reactor Demonstration Program (ARDP) risk reduction award, for which the company was selected in Dec. 2020, to support the design, construction, and commissioning of the Hermes demonstration reactor in Oak Ridge, Tenn. Under the agreement, DOE will provide up to $303 million to Kairos Power using a performance-based, fixed-price milestone approach, wherein the company will receive fixed payments upon demonstrating the achievement of significant project milestones. The contracting method has been used by the Department of Defense and follows the significant precedent in NASA’s successful Commercial Orbital Transportation Services (COTS) program. It has proven to be a flexible and effective model to support the development and demonstration of complex technologies through federal partnerships with commercial companies. “With the use of fixed-price milestone payments, this innovative contract provides real benefits to both Kairos Power and DOE to ensure the successful completion of the Hermes reactor. It allows us to remain focused...

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