Oak Ridge Today

New UPF project director replaces Strock, who is retiring

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Brian Reilly

Brian Reilly

Consolidated Nuclear Security LLC announced last week that Brian Reilly will become project director for the Uranium Processing Facility.

CNS is the new contractor that will manage and operate the Y-12 National Security Complex in Oak Ridge and Pantex Plant in Amarillo, Texas, starting this summer.

A press release said Reilly has 34 years of commercial nuclear engineering, procurement, and construction leadership and project management experience. A Bechtel senior vice president, Reilly managed Bechtel’s global nuclear operations for six years and has led numerous nuclear projects from conceptual studies and design through all aspects of engineering, procurement, and construction. [Read more…]

More than 100 jobs terminated as B&W work on USEC centrifuge project ends

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American Centrifuge Technology Manufacturing Center

The American Centrifuge Technology Manufacturing Center in south Oak Ridge is pictured above. (Photos courtesy USEC)

But hundreds of jobs maintained in Ohio and Tennessee, USEC says

Babcock and Wilcox has terminated the employment of more than 100 workers who had been involved in the American Centrifuge project with USEC, and Monday was the last day of work for most of them, a spokesperson said.

“B&W’s involvement in the American Centrifuge Manufacturing LLC has transitioned fully to USEC, which will result in the termination of all 122 employees B&W had engaged in the effort,” said Aimee Mills, B&W media relations lead.

Mills said roughly 25 employees will be released during the next two months as the “final steps of demobilization take place” on the advanced uranium enrichment project, which has included centrifuge manufacturing in Oak Ridge and the American Centrifuge Plant in Piketon, Ohio.

“Some of those affected have been reassigned within B&W,” Mills said. “We have also provided assistance by way of job fairs and workshops to update resumes.”

Meanwhile, USEC has notified a small group of its Oak Ridge employees who worked on manufacturing activities that they would be laid off, Communications Manager Jeremy Derryberry said Tuesday. Several were transferred to other parts of the centrifuge program. [Read more…]

USEC centrifuge agreement extended, but future uncertain as workers receive WARN notices

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Centrifuge Machine Manufacturing

In Oak Ridge, USEC workers take part in centrifuge operations, testing, and manufacturing for the American Centrifuge Project. (Photos courtesy USEC)

Note: This story was last updated at 11:11 a.m.

The American Centrifuge Project, a program that would enrich uranium for commercial nuclear power plants and has operations in Oak Ridge, got a little extra time this week.

Several billions have already been spent and funding was set to expire April 15, but USEC announced Tuesday morning that the research, development, and demonstration agreement was extended through April 30. That was done at no additional cost to the taxpayer through “prudent management of existing program funds by USEC,” the company said in a press release.

In the meantime, USEC said it continues its discussions with Oak Ridge National Laboratory, which could take over the management of the project for national security purposes. The DOE takeover was announced by Energy Secretary Ernest Moniz during a House Appropriations subcommittee hearing earlier this month.

The future of the project is not clear and several hundred workers have received notices that they could be laid off. On Friday, USEC Inc. spokesperson Paul Jacobson said the 60-day notices, which were effective March 19, were sent to 174 USEC employees in the Oak Ridge area and a total of 400 workers. Most of the other workers are in Piketon, Ohio, but there are also a few at USEC headquarters in Bethseda, Md. [Read more…]

B&W: No more protests of $22 billion Y-12, Pantex contract

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Y-12 National Security Complex Aerial View

After more than one year and three protests, a team led by the Babcock and Wilcox Co. will no longer oppose the transition to a new contractor at the Y-12 National Security Complex in Oak Ridge, pictured above, and Pantex Plant in Amarillo, Texas.

Note: This story was last updated at 8:43 a.m. March 20.

After more than one year and three protests, a team led by the Babcock and Wilcox Co. will no longer oppose the transition to a new contractor at the Y-12 National Security Complex in Oak Ridge and Pantex Plant in Amarillo, Texas.

The team, Nuclear Production Partners LLC, had challenged the National Nuclear Security Administration’s decision to award the consolidated contract to another team, Consolidated Nuclear Security LLC, or CNS. That decision was first announced in January 2013 and reaffirmed in November. The contract could be worth $22.8 billion during a 10-year period.

The U.S. Government Accountability Office denied the third and final protest by Nuclear Production Partners LLC, or NP2, on Feb. 27, but it wasn’t clear if the B&W-led team might continue to challenge the contract award. The case could have been appealed to the U.S. Court of Federal Claims in Washington, D.C.

In the meantime, federal officials and CNS said they had started the four-month transition to CNS at Y-12 and Pantex. The transition had originally been scheduled to be complete by May 2013, but it had been delayed by protests. Among other things, the protests had led the NNSA to seek additional cost savings information from the three bidding teams. [Read more…]

USEC bankruptcy filing won’t affect daily operations in Oak Ridge, company says

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Centrifuge Machine Manufacturing

In Oak Ridge, USEC workers take part in centrifuge operations, testing, and manufacturing for the American Centrifuge Project. (Photos courtesy USEC)

The Chapter 11 bankruptcy filing and financial restructuring plan that USEC Inc. announced last week will not affect daily operations in Oak Ridge or the American Centrifuge Project, a company spokesman said Monday.

The bankruptcy filing and financial plan are a restructuring of the balance sheet of the parent company, USEC Inc., spokesman Paul Jacobson said. He said the company is trying to strengthen its balance sheet and be a stronger sponsor of the American Centrifuge Project, a “next-generation” U.S. uranium enrichment technology. USEC Inc. is a global energy company that is a leading supplier of enriched uranium fuel for commercial nuclear power plants.

The company currently has 304 people working on the centrifuge program in Tennessee. In Oak Ridge, workers take part in centrifuge operations, testing, and manufacturing.

“This plan for restructuring our debt and equity will have no effect on our employees, who will continue to receive paychecks and benefits in the ordinary course,” Jacobson said. “As we have communicated to our employees previously, some employees will be impacted by several ongoing initiatives that are unrelated to the restructuring.” [Read more…]

Consolidated Nuclear Security resuming contract transition at Pantex, Y-12

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Y-12 National Security Complex Aerial View

The Y-12 National Security Complex in Oak Ridge is pictured above.

Consolidated Nuclear Security LLC has been authorized by the National Nuclear Security Administration to resume its transition to manage and operate the Y-12 National Security Complex in Oak Ridge and Pantex Plant in Amarillo, Texas, the company announced Thursday.

The announcement comes one week after the U.S. Government Accountability Office denied the third and possibly final protest by one of the two teams that unsuccessfully bid on the $22 billion contract to manage the two nuclear weapons plants. The protests had been filed by Nuclear Production Partners LLC, a team led by The Babcock and Wilcox Co., which is currently the lead contractor at Y-12 and Pantex.

The decision to award the consolidated contract to CNS, first announced in January 2013, has now been upheld by the NNSA and GAO, the company said. The five-year contract with the NNSA includes options that could allow the contract to be extended for up to five more years, based upon performance.

“The CNS team submitted a very strong and credible solution for managing and operating the Pantex and Y-12 sites, and we are eager to begin implementing our proposal together with the dedicated employees of Pantex and Y-12,” said Jim Haynes, CNS chief executive officer. “We look forward to partnering with the communities of Amarillo and Oak Ridge.” [Read more…]

Transition to new contractor under way at Y-12, Pantex

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Y-12 National Security Complex Aerial View

The transition to a new contractor at the Y-12 National Security Complex, pictured above, and Pantex Plant in Texas is already under way and could be completed in four months.

Note: This story was last updated at 10:22 a.m. March 4.

The transition to a new contractor at the Y-12 National Security Complex in Oak Ridge and Pantex Plant in Texas is already under way and could be completed in four months, federal officials said Monday.

The transition to Consolidated Nuclear Security LLC of Reston, Va., had originally been scheduled to be complete by May 2013, but it was delayed by three rounds of protests. The U.S. Government Accountability Office denied the third and possibly final protest by Nuclear Production Partners LLC, or NP2, of Lynchburg, Va., on Thursday.

On Monday, the National Nuclear Security Administration said CNS will start managing and operating the weapons production plants at Y-12 and Pantex at the end of the four-month transition period. [Read more…]

GAO denies third protest of $22 billion contract to manage Y-12, Pantex

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Y-12 National Security Complex Aerial View

Federal officials have denied the third protest by one of the two teams that unsuccessfully bid on a $22 billion contract to manage the Y-12 National Security Complex in Oak Ridge, pictured above, and Pantex Plant near Amarillo, Texas.

Note: This story was updated at 6:45 p.m.

Federal officials have denied the third protest by one of the two teams that unsuccessfully bid on a $22 billion contract to manage the Y-12 National Security Complex in Oak Ridge and Pantex Plant near Amarillo, Texas.

In the protest, Nuclear Production Partners LLC of Lynchburg, Va., had challenged a November decision by the National Nuclear Security Administration to reaffirm its earlier decision, announced in January 2013, to award the consolidated contract to Consolidated Nuclear Security LLC of Reston, Va.

On Thursday, the U.S. Government Accountability Office announced that it had denied the third protest. It’s the final GAO protest, but the case could be appealed to the U.S. Court of Federal Claims in Washington, D.C.

Statistically, that’s not likely; the GAO hears 2,500 protests per year, and the court has about 84. But there is a large amount of money at stake with this contract.

The GAO had upheld one part of an earlier NP2 protest and denied or dismissed three elements of a second. [Read more…]

Officials say little about Monday hearing on Y-12, Pantex contract

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Y-12 National Security Complex

The Y-12 National Security Complex in Oak Ridge is pictured above.

Officials said little about the federal hearing held Monday to discuss the consolidated but contested contract to manage the Y-12 National Security Complex in Oak Ridge and Pantex Plant near Amarillo, Texas.

The hearing is related to the protest filed by Nuclear Production Partners LLC, or NP2, which has contested the decision to award the contract to Consolidated Nuclear Security LLC of Reston, Va. Originally announced in January 2013, the contract could be worth up to $22.8 billion over a decade.

The hearing had originally been scheduled for Jan. 29, but it was rescheduled. [Read more…]

B&W announces leadership changes at Y-12

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Dave Richardson

Dave Richardson

The Babcock and Wilcox Co. on Friday announced top management changes at B&W Y-12, the contractor that operates the Y-12 National Security Complex in Oak Ridge.

Among the changes: B&W Y-12 President and General Manager Charles G. “Chuck” Spencer, who started at Y-12 shortly after the July 28, 2012, security breach, will return to his former position as vice president and chief operating officer of Babcock and Wilcox Technical Services Group Inc. Spencer will continue his involvement at Y-12 and the Pantex Plant in Texas as chairman of the Board of Managers for both B&W Y-12 and Babcock and Wilcox Technical Services Pantex LLC, a press release said.

Spencer replaced Darrel P. Kohlhorst in August 2012. Kohlhorst abruptly retired after the security breach.

Spencer will be replaced by Dave Richardson, who will become president and general manager of Babcock and Wilcox Technical Services Y-12 LLC, or B&W Y-12, on Feb. 1. [Read more…]

DOE announces new investment in small modular reactors

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mPower Containment

Conceptual drawing of an underground containment structure housing two B&W mPower reactor modules. (Image courtesy B&W)

The U.S. Department of Energy last week announced a second round of funding for small modular reactors.

The first award, announced earlier this year, provided support to Babcock and Wilcox Co. through a program that could result in small modular reactors at the former Clinch River Breeder Reactor site in west Oak Ridge. In November, B&W announced it had already invested more than $360 million in that project, and the North Carolina company was looking for investors and possibly majority owners.

DOE said the new award was given to Oregon-based NuScale Power LLC to support a new project to design, certify, and help commercialize innovative small modular reactors in the United States.

The department said the reactors could provide clean, safe, and cost-effective nuclear energy, and build on President Obama’s Climate Action Plan to “continue America’s leadership in clean energy innovation.” [Read more…]

B&W-led team files new protest on Y-12, Pantex contract

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Y-12 National Security Complex Aerial View

The bidding team led by the Babcock and Wilcox Co. has filed a third protest over the contract to manage and operate the Y-12 National Security Complex in Oak Ridge, pictured above, and the Pantex Plant near Amarillo, Texas. (Photo courtesy B&W Y-12)

CHARLOTTE, N.C.—The bidding team led by the Babcock and Wilcox Co. has filed a third protest over the contract to manage and operate the Y-12 National Security Complex in Oak Ridge and the Pantex Plant near Amarillo, Texas.

B&W announced the protest by the bidding team, Nuclear Production Partners LLC, or NP2, on Wednesday night. It was filed with the U.S. Government Accountability Office.

“This protest encompasses concerns identified in NP2’s June 17, 2013, protest of the revised Request for Proposals,” a B&W press release said. “The protest also reflects information received during the National Nuclear Security Administration’s debriefing session held on November 15.”

The June protest was the second filed by NP2, of Lynchburg, Va. The company had also filed one after the National Nuclear Security Administration announced in January that it had selected Consolidated Nuclear Security LLC of Reston, Va., to manage the two nuclear weapons plants. [Read more…]