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 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…]

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…]

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…]

NNSA reaffirms decision to have CNS manage, operate Y-12, Pantex

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Y-12 National Security Complex Aerial View


The National Nuclear Security Administration on Friday reaffirmed its January decision to pick Consolidated Nuclear Security LLC to manage and operate the Y-12 National Security Complex in Oak Ridge and the Pantex Plant near Amarillo, Texas.

The National Nuclear Security Administration on Friday reaffirmed its January decision to pick Consolidated Nuclear Security LLC  to manage and operate the Y-12 National Security Complex in Oak Ridge and Pantex Plant near Amarillo, Texas.

That earlier decision, announced almost 10 months ago, had been challenged in two rounds of bid protests. Those protests delayed the transition to a new contractor, and it wasn’t clear Friday if the NNSA’s new decision might also be challenged.

The five-year extendable contract, which could be worth up to $22.8 billion over 10 years, includes project management of the Uranium Processing Facility at Y-12 and an unexercised option for Savannah River Tritium Operations at the Savannah River Site near Aiken, S.C.

“Our nuclear production capabilities are critical to our national security, and CNS represents the best value to the government as evidenced by its superior technical and management approach and its lower evaluated cost,” NNSA Acting Administrator Bruce Held said. “Additionally, this award puts NNSA in a position to improve mission delivery by focusing on improving the way we operate, saving taxpayer dollars, and aligning ourselves for the future.” [Read more…]

No comment from NNSA on next step for Y-12, Pantex contract

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Y-12 National Security Complex Sign

Federal officials declined to comment Wednesday on the next step in the process to award a consolidated contract to manage and operate the Y-12 National Security Complex in Oak Ridge and Pantex Plant near Amarillo, Texas.

Federal officials declined to comment Wednesday on the next step in the process to award a consolidated contract to manage and operate the Y-12 National Security Complex in Oak Ridge and Pantex Plant near Amarillo, Texas.

On Tuesday, the U.S. Government Accountability Office announced in an eight-page decision that it had denied or dismissed three elements of a bid protest filed June 17 by Nuclear Production Partners LLC, or NP2, a team led by Babcock and Wilcox Co. But it wasn’t clear what would happen next.

“No comment,” Kate Black, a contractor for the National Nuclear Security Administration, said in a brief e-mail response to a question about the next step on Wednesday afternoon. [Read more…]

Federal decision on new protest of Y-12, Pantex contract due Sept. 25

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Y-12 National Security Complex

Y-12 National Security Complex (Submitted photo)

Federal officials have a Sept. 25 deadline to rule on a new protest filed last week by one of the two teams that lost a contract competition earlier this year to manage two nuclear weapons plants in Tennessee and Texas.

The new bid protest was filed on June 17 by Nuclear Production Partners LLC, or NP2, a team led by Babcock and Wilcox Co. The U.S. Government Accountability Office has 100 days to respond to the latest protest but could issue a decision earlier.

The bid protest is related to the consolidated management and operating contract at the Y-12 National Security Complex in Oak Ridge and Pantex Plant near Amarillo, Texas. [Read more…]

D’Agostino, companies celebrate contract award, key step in NNSA transition

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Y-12 National Security Complex

Y-12 National Security Complex (Submitted photo)

Less than two weeks before his retirement, a federal official celebrated the consolidated contract award announced Tuesday, calling it a key element in a long list of decisions and actions designed to reduce redundancies in national nuclear security work and make operations more efficient.

It reflects a change in how the National Nuclear Security Administration does business, NNSA Administrator Thomas D’Agostino said during a Tuesday teleconference. The transition began several years ago.

“We embarked on a journey from an old Cold War nuclear enterprise to a 21st Century nuclear enterprise,” D’Agostino said. “I’m immensely proud of the team.”

The NNSA announced Tuesday that, after months of anticipation and three to four years’ worth of work, Consolidated Nuclear Security LLC, or CNS, had won a five-year contract to manage the Y-12 National Security Complex in Oak Ridge and the Pantex Plant near Amarillo, Texas. The company will also manage construction of the Uranium Processing Facility at Y-12 and, after the first year, could manage tritium operations at the Savannah River Site near Aiken, S.C.

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Bechtel, Lockheed Martin team wins contract to manage Y-12, Pantex

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Y-12 National Security Complex

Consolidated Nuclear Security LLC has been selected to manage the Y-12 National Security Complex in Oak Ridge and the Pantex Plant near Amarillo, Texas, and the company will take over from B&W Y-12 on May 1.

Consolidated Nuclear Security LLC, a team that includes Bechtel National Inc. and Lockheed Martin Services Inc., has won a five-year contract to manage and operate the Y-12 National Security Complex in Oak Ridge and the Pantex Plant near Amarillo, Texas, federal officials announced Tuesday morning.

The winning team also includes ATK Launch Systems Inc. and SOC LLC. Besides managing and operating Y-12 and Pantex, Consolidated Nuclear Security, or CNS, will also manage construction of the Uranium Processing Facility at Y-12 and could manage tritium operations at the Savannah River Site near Aiken, S.C.

Including the possible tritium work, the contract has a total available fee of up to $446 million for CNS to manage the three sites for the U.S. Department of Energy and the National Nuclear Security Administration. CNS may also earn up to an additional $263 million as their share of savings, an NNSA announcement said, although CNS cannot share any savings related to employee benefits.

The four-month transition to CNS will begin immediately, and CNS will take over the work on May 1, the NNSA said in a Tuesday morning announcement. The contract will be administered by the NNSA Production Office, or NPO, which which was created in June and oversees nuclear production missions at Y-12 and Pantex.

[Read more…]