Despite low rating, CNS earns $42.6M in fees

photo-010Despite Consolidated Nuclear Security’s low performance rating for its first 15 months on the job, the contractor received a total of about $42.6 million in fees from the National Nuclear Security Administration.

pantex1That’s because the company’s contract for managing Y-12 and Pantex during the first year included a large amount of fixed fees — more than $31 million — not tied directly to performance factors.

Of the roughly $20 million in available fee that was based on performance objectives, CNS received 57 percent — or about $11.4 million, according to a DOE fee document.

CNS, a Bechtel-led partnership, took over management of Y-12 and its sister plant, Pantex (near Amarillo, Texas) on July 1, 2014, and the evaluation covered the last three months of Fiscal 2014 and the entirety of Fiscal 2015, which ended Sept. 30.

The NNSA has not yet released the performance evaluation report for the federal contractor at Y-12 and Pantex.

An earlier report indicated the amount of fixed fees is expected to drop after the first year of the CNS contract, becoming more of a performance-based contract.

In the evaluation for the period ending Sept. 30, the contractor’s six performance objectives were: Manage the nuclear weapons mission; Reduce Global Nuclear Security Threats mission; DOE and Strategic Partnership Project; Science, Technology and Engineering; Operations and Infrastructure; and Leadership. The nuclear weapons mission and the operations and infrastructure had the biggest influence to the performanced-based fees.

Besides Bechtel National, the Consolidated Nuclear Security contractor team includes Lockheed Martin Services; Orbital ATK Inc. and SOC LLC. Booz Allen Hamilton also serves as a special subcontractor to the team.

The government initially awarded the Y-12/Pantex combined management contract to Consolidated Nuclear Security in early 2013, but the transition of contractors at the two plants was delayed because of protests filed by the losing bidders.

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This entry was posted in CNS, NNSA, nuclear, Pantex, Y-12 on by .

About Frank Munger

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.