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For members: Y-12, Pantex contract extended for two years, $3.8 billion

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The Y-12 National Security Complex is pictured above. (Photo courtesy CNS Y-12)

The contract to manage and operate the Y-12 National Security Complex in Oak Ridge and Pantex Plant near Amarillo, Texas, has been extended for two years, and the extension is valued at about $3.8 billion, the National Nuclear Security Administration said Wednesday.

More than $500 million in cost savings were verified during the first four years of the consolidated contract, according to the NNSA, which is part of the U.S. Department of Energy and oversees the work at Y-12 and Pantex, among other nuclear weapons sites.

The Y-12 National Security Complex is pictured above. (Photo courtesy CNS Y-12)

 

The contract to manage and operate the Y-12 National Security Complex in Oak Ridge and Pantex Plant near Amarillo, Texas, has been extended for two years, and the extension is valued at about $3.8 billion, the National Nuclear Security Administration said Wednesday.

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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…]

School budget proposals include cuts, tax hikes with varying benefits

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Bruce Borchers

Bruce Borchers

Oak Ridge Schools Superintendent Bruce Borchers presented three budget proposals for fiscal year 2015 to the school board on Wednesday. The proposals suggest that deep cuts will need to be made to attract new students, families, and staff to the district, and to keep those already here. Borchers introduced the proposals by stating that the district will be “tightening our belt.”

Students, families, and staff were the main theme of the budgets proposed on Wednesday. In fact, each was presented to show a different budget scenario that would lose, retain, or attract the group. The school board will review two budgets intended to retain and attract those groups, as well as a third expected to result in a loss of students, family, and staff. All of the budgets proposed generate revenue through expenditure cuts.

All three budget proposals suggest property tax rate increases to offset the cuts, with the rate hikes ranging from 14 to 57 cents.

With about $1.2 million in cost savings, the first proposal has the lowest budget target, and it was referred to as the “losing students-families-staff” budget. It proposed the fewest system-wide cuts, but still suggested that reductions are needed. Those expenditure cuts include increasing class sizes and reducing teaching positions and transportation services. Transportation reductions would increase the student “walk zone” to one mile and end preschool transportation altogether. This proposal would not be able to fund the district’s 1:1 device integration program.

The second budget, said to “retain students-families-staff,” is targeted to bring $3.7 million in revenue through cost savings. This budget would still make cuts to staff and transportation, but would allow the planned 1:1 device integration to begin, which would be cut from the “losing” budget. This budget allows a 2 percent wage raise system-wide, but still calls for staff reductions, including reducing the assistant principal position at Oak Ridge High School as well as extra-curricular stipends and staff development reductions. [Read more…]

Y-12, Pantex workforce reductions could total about 170 jobs

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Y-12 National Security Complex Scarboro Road Entrance

The Scarboro Road entrance to the Y-12 National Security Complex is pictured above.

Workforce reductions at the Y-12 National Security Complex in Oak Ridge and Pantex Plant in Amarillo, Texas, are expected to total about 170 jobs, officials said this week.

That’s about 2 percent of the roughly 7,900 workers at the two nuclear weapons plants.

The workforce reductions are expected to come through a voluntary separation program, or VSP.

The majority of the reductions, or 140 positions, would be at Y-12. The other 30 would be at Pantex.

The VSPs are being considered as a new federal contractor, Consolidated Nuclear Security LLC, prepares to take over at Y-12 and Pantex on July 1. CNS, which was first announced as the new consolidated contractor in January 2013, has promised to save the federal government more than $3 billion during the next decade. [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…]

Parts of Y-12, Pantex contract protests upheld; GAO says procurement should be re-opened

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Y-12 National Security Complex

The U.S. Government Accountability Office has upheld parts of two protests filed over the January award of a five-year contract to manage and operate the Y-12 National Security Complex, pictured above, and Pantex Plant near Amarillo, Texas. (Submitted photo)

A federal agency has upheld parts of two protests challenging a five-year contract to manage two nuclear weapons plants in Tennessee and Texas.

The U.S. Government Accountability Office also recommended re-opening the contract procurement, raising questions about the status of the $22.8 billion contract awarded to Consolidated Nuclear Security LLC, or CNS, in January. CNS was one of three bidding teams who competed for the contract to manage and operate the Y-12 National Security Complex in Oak Ridge and Pantex Plant near Amarillo, Texas.

At the heart of the GAO decision, announced Monday, were questions about proposed savings. In particular, the agency seemed to question whether the National Nuclear Security Administration, which awarded the consolidated contract to CNS on Jan. 8, had properly evaluated the expected savings.

“NNSA failed to follow the publicly stated solicitation criteria, which provided that the agency would evaluate the feasibility and size of each offeror’s proposed cost savings resulting from the consolidation of the management and operation of these sites,” Ralph O. White, GAO managing associate general counsel for procurement law, said in a statement released Monday afternoon. [Read more…]

U.S. Postal Service cuts costs, ends Saturday mail delivery in August

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WASHINGTON — The United States Postal Service announced plans today to transition to a new delivery schedule during the week of Aug. 5 that includes package delivery Monday through Saturday, and mail delivery Monday through Friday. The Postal Service expects to generate cost savings of approximately $2 billion annually, once the plan is fully implemented.

“The Postal Service is advancing an important new approach to delivery that reflects the strong growth of our package business and responds to the financial realities resulting from America’s changing mailing habits,” said Patrick R. Donahoe, postmaster general and chief executive officer. “We developed this approach by working with our customers to understand their delivery needs and by identifying creative ways to generate significant cost savings.”

[Read more…]