Oak Ridge Today

With $3 billion in savings expected, not clear how much saved at Y-12, Pantex so far

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Y-12 National Security Complex

The Y-12 National Security Complex in Oak Ridge is pictured above. (File photo/B&W Y-12)

 

More than $3 billion in savings are expected during a decade, but it’s not clear yet how much money has been saved after three years under a consolidated contract at two nuclear weapons plants in Tennessee and Texas.

The savings of $3.27 billion are expected under a contract that could last 10 years at the Y-12 National Security Complex in Oak Ridge, Tennessee, and Pantex Plant in Amarillo, Texas.

On Monday, officials said Consolidated Nuclear Security LLC, the contractor at the two sites, has generated significant savings in three fiscal years, although it’s not clear exactly how much they’ve saved. CNS has managed and operated Y-12 and Pantex Plant since July 1, 2014.

Federal officials announced the expected savings of $3.27 billion during a decade when the five-year contract was announced in January 2013. Officials said the consolidated contract, the result of years of work, could save money in part by eliminating redundancies in such areas as human resources, purchasing, finance, and information technology. [Read more…]

Congressmen praise consolidated contract at Y-12, Pantex

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U.S. Representative Mac Thornberry, left, a Texas Republican, and Representative Chuck Fleischmann, a Tennessee Republican, are pictured above after an East Tennessee Economic Council meeting on Friday, Oct. 6, 2017. (Photo by John Huotari/Oak Ridge Today)

U.S. Representative Mac Thornberry, left, a Texas Republican, and Representative Chuck Fleischmann, a Tennessee Republican, are pictured above after an East Tennessee Economic Council meeting on Friday, Oct. 6, 2017. (Photo by John Huotari/Oak Ridge Today)

 

Two congressmen, one from East Tennessee and other the chair of the House Armed Services Committee, praised the consolidated contract that has been used to manage and operate the Pantex Plant in Amarillo, Texas, and the Y-12 National Security Complex in Oak Ridge for more than three years.

The two sites are managed by Consolidated Nuclear Security LLC. Y-12 and Pantex are involved in nuclear weapons work and nuclear nonproliferation, and providing enriched uranium for naval, research, and isotope production reactors.

The transition to the consolidated contract, one of the most complex in the history of the U.S. Department of Energy, was completed on July 1, 2014. At that time, officials said the contract included a total annual operating budget of $1.5 billion and employment of about 8,000 in Tennessee and Texas. [Read more…]

CNS reinforces commitment to small businesses

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Consolidated Nuclear Security LLC purchased more than $210 million in goods and services from small businesses during the first nine months of fiscal year 2016, including more than $149 million at the Y-12 National Security Complex and $61 million at the Pantex Plant. Small business contracting at Y-12 includes more than $10 million in small business obligations for work on the Uranium Processing Facility project, which is managed by Bechtel National Inc., through a subcontract with CNS, a press release said.

In recognition of the significant role small businesses play in the national economy—as well as the economies in East Tennessee and the Texas Panhandle—CNS uses small businesses in a variety of roles, from technical and administrative support to staff augmentation and construction support and strives to provide the maximum possible contracting opportunities to small businesses in a host of categories recognized by the Small Business Administration, the press release said. Those categories include 8(a), woman-owned, Historically Underutilized Business Zone (HUBZone), veteran-owned, service disabled veteran-owned small businesses, small and small disadvantaged businesses. [Read more…]

Smith named president, CEO at Consolidated Nuclear Security, which operates Y-12, Pantex

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Morgan Smith

Morgan Smith

The chief operating officer at the company that operates Y-12 National Security Complex in Oak Ridge and Pantex Plant in Texas will become the president and chief executive officer on February 1.

Morgan Smith will replace Jim Haynes in the top leadership position at Consolidated Nuclear Security LLC. Haynes is returning to an executive position at Bechtel, a press release said. Bechtel National Inc. is part of the CNS team.

CNS said Haynes successfully led the government contractor through its first phase as a consolidated organization. CNS began managing and operating Y-12 and Pantex under a consolidated contract on July 1, 2014. Both sites are important production facilities for federal nuclear security work.

“With the majority of key consolidation activities complete, CNS moves to its next phase focused on advancing operational performance and increasing production,” Haynes said in the press release. “Morgan Smith is uniquely positioned to lead CNS at this time based on his past experience managing Naval Nuclear Propulsion Program facilities and his time at CNS. Morgan and I have mapped out the path for a successful handoff. I could not be more confident in Morgan’s abilities.” [Read more…]

Demolition of Building 9744 completed at Y-12

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Y-12 Building 9744 Demolition

The Y-12 National Security Complex completed the demolition of Building 9744 this week. The facility was a deteriorated, former utilities and maintenance facility taking up more than 9,000 square feet in Y-12’s high-security area. Despite challenges, the CNS demolition team was able to bring down the facility nearly two months ahead of schedule. (Photo courtesy NNSA)

 

The Y-12 National Security Complex recently celebrated another improvement in its site infrastructure with the demolition of Building 9744, a former utilities and maintenance facility occupying more than 9,000 square feet in Y-12’s Protected Area.

“This facility was in danger of collapse and posed a risk to the site’s personnel and operations,” said James McConnell, the National Nuclear Security Administration’s acting associate administrator for infrastructure and operations. “Upon realization of this risk, we were able to secure funding to stabilize the area from both a safety and environmental perspective.

The demolition proved challenging due to the deteriorating facility conditions, precluding the standard approach of entering the facility to abate hazards and remove hazardous waste prior to the structural demolition. Despite structural issues and associated waste disposal concerns, the facility was safely demolished nearly two months ahead of schedule. The demolition team collaborated with several internal and external organizations to accomplish the aggressive schedule in accordance with environmental and safety standards. [Read more…]

CNS begins managing, operating Pantex, Y-12

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Pantex Plant Aerial February 2008

The Pantex Plant near Amarillo, Texas, is pictured above. (Photo courtesy NNSA)

 

Two nuclear weapons facilities managed under one contract

Consolidated Nuclear Security LLC on Tuesday assumed full responsibility for managing and operating the Pantex Plant in Amarillo, Texas, and Y-12 National Security Complex in Oak Ridge. The two nuclear weapons facilities perform missions vital to national security, CNS said in a press release.

The National Nuclear Security Administration awarded CNS the contract to consolidate the two facilities under a single contract. During a four-month transition that began March 3, the CNS team prepared to integrate and operate both facilities to deliver their critical missions with safety, security, quality, and cost efficiency, the press release said.

During the course of transition, CNS completed more than 3,000 scheduled actions, brought on board 7,800 employees, inspected more than 400 facilities, reviewed and approved more than 5,000 procedures, consulted with dozens of community leaders and elected officials, and established the structure and processes for managing the two sites as one enterprise, the release said. Transition activities were completed on schedule and under budget. [Read more…]

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…]

Staff size at Y-12, Pantex could be reduced through voluntary separations

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Y-12 National Security Complex Aerial View

The Y-12 National Security Complex is pictured above.

The staff size at the Y-12 National Security Complex in Oak Ridge and Pantex Plant in Amarillo, Texas, could be reduced as a new federal contractor takes over. Officials expect the staff reductions to be less than 5 percent, and they say that most, if not all, of the staff reductions could come through voluntary separation programs.

The voluntary separation programs, or VSPs, were announced on April 15 by B&W Y-12 President and General Manager Dave Richardson and B&W Pantex President and General Manager John Woolery.

In his message to Y-12 workers, Richardson said the National Nuclear Security Administration had directed the plants to conduct the VSPs as part of the implementation of the staffing plan for Consolidated Nuclear Security LLC, the new contractor at the two nuclear weapons plants in Tennessee and Texas.

The Y-12 VSP will be targeted to specific job classifications and roles identified by CNS, Richardson said. Only employees in those specific classifications and roles will be eligible to apply for the VSP.

“Currently, B&W Y-12 is in the process of putting together a VSP plan that is in alignment with CNS’ staffing desires,” Richardson said last week. “We will submit our VSP plan later this week. Once this plan is approved by NNSA, we’ll communicate more details to you; specifically, each person eligible to participate in the VSP will be notified.” [Read more…]

United Way raises $1.17 million, about 90 percent of ‘bold’ goal

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Greta Ownby and Edwena Crowe

UWAC Board President, Greta Ownby, left, announces Edwena Crowe, right, as Volunteer of the Year. (Submitted photos)

The campaign was complicated by the partial government shutdown in October, but the United Way of Anderson County raised close to $1.2 million this year, or about 90 percent of its goal.

The results were announced at an annual meeting and campaign announcement at the Children’s Museum of Oak Ridge on Thursday.

The campaign goal, which was described as “bold,” had been $1.3 million. The total amount raised was $1,172,742. The United Way said this will allow for stable funding for its agency programs.

“Unfortunately, we will not be able to increase funding to our community partners,” UWAC Executive Director Rick Morrow said. “Last year’s total resulted in a reduction of $200,000 to the funding pool, and this year’s total will only allow for continued funding at that level.” [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…]