CNS’ fixed fee

Of the total fee of about $42,6 million paid to Consolidated Nuclear Security for the first 15 months on the job at Y-12 and Pantex, about $31.2 million was fixed fee. That’s because the first year of the management contract was done under fixed fee, with only the award for the final three months of Fiscal Year 2015 (July-September) based on performance.Basic RGB

CNS took over management of the Y-12 and Pantex nuclear weapons plants on July 1, 2014, so the first three months of the contract were part of FY 2014. It’s a little confusing, but here is a statement about the Performance Evaluation Report (PER) provided by Steven Wyatt, a spokesman for the National Nuclear Security Administration’s Production Office:

“The PER issued on Friday covered FY 2015 (Oct 1, 2014 – September 30, 2015), as stated in the executive summary, and provided the  assessment of performance expectations established in the FY 2015 Performance Evaluation Plan.  The fee and scores announced in December through Jim Haynes message to employees, however, covered both the last three months of FY 2014 at the start of the contract and the full FY 2015 performance period.  In terms of fee, however, the first 12 months of the contract was fixed fee and the last three months, through September 30, 2015, was award fee.”

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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.