B&W docked $12.2 million in fee as a result of July security breach

For Fiscal Year 2012, B&W Y-12 received only 58.9 percent of the total fee available, the contractor’s lowest ever, and the National Nuclear Security Administration docked the Oak Ridge contractor $12.2 million in award fee as a result of the July 28 security breach.
According to the NNSA, Babcock & Wilcox Technical Services Y-12 LLC, a partnership of B&W and Bechtel National, was given a “very good” rating for Program; a “satisfactory” rating for Operations; and a “very good” rating for Institutional Management and Business.
The government awarded B&W Y-12 a total fee of $35,862,741. That was out of a total available fee of $60,863,521.

“As a result of the July security incident, B&W Y-12 lost a total of $12.2 million in award fee, which includes 100% of their possible security-related fee and a negative overall management fee adjustment of $10 million,” the NNSA stated on its website.
In FY 2011, the Y-12 contractor received a total fee of $51.2 million.

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About Frank Munger

Senior Writer Frank Munger covers the Dept. of Energy's Oak Ridge facilities and many related topics ā€” 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.