NNSA says winning proposal on Y-12/Pantex contract will save $3.27B

The National Nuclear Security Administration has now released its announcement on the Y-12 and Pantex consolidated contract, confirming that the team headed by Bechtel National and Lockheed Martin was selected as the winner. In addition to ATK Launch Systems Inc., the team also includes SOC LLC as a member of the contracting partnership to be known as Consolidated Nuclear Security LLC.
The announcement said the newly combined contract will save taxpayers $3.27 billion over the next decade, based on the plans included in the winning proposal. There will be a four-month transition from the current contractor, Babcock & Wilcox Technical Services Y-12.
CNS is scheduled to take over the mission work under the contract on May 1, 2013.

NNSA’s announcement said the contract also includes the construction project management of the Uranium Processing Facility, the multi-billion-dollar production in design at the Y-12 nuclear weapons plant.
Besides the aforementioned partners, CNS also will use Booz Allen Hamilton Iinc. as a merger and transformation specialist and General Atomics, if the option is exercised to include the tritium work at Savannah River as part of the contract.
The base term for the management contract is five years, with options that could extend it another five years.
“To be eligible for continued performance beyond the fifth year, CNS will be required to deliver on promises made in its proposal regarding efficiencies and to continue to meet mission and other contract requirements consistently,” the announcement said.
“If NNSA’s option for Savannah River tritium operations is exercised at the end of year one, the contract includes a total available fee of approximately $446 million to manage the three sites for DOE and NNSA work, depending on CNS’ quality of performance.”
The federal agency said the new contractor can up to an additional $263 million as their share of savings, as implemented. However, the government said CNS cannot share any savings that comes as a result of reducing employee benefits.

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Senior Writer Frank Munger covers the Dept. of Energy's Oak Ridge facilities and many related topics — nuclear weapons, nuclear waste and other things nuclear, environmental cleanup and science of all sorts. Atomic City Underground is, first and foremost, a news blog, but there's room for analysis, opinion and random thoughts that have no place else to go.