DOE Questions How TOPS Subcontract Was Transferred
WC Monitor
5/30/2014
The Department of Energy appears to have some concerns over the recent transfer of a waste-hauling subcontract from Transportation, Operations and Professional Services (TOPS), which was raided by federal law enforcement agents earlier this year, to Oak Ridge, Tenn.-based TFE Inc. When asked if DOE had approved the transfer of the URS-CH2M Oak Ridge, LLC, subcontract, Mike Koentop of the Department’s Oak Ridge Office said DOE had not. “TOPS and TFE made a business decision to enter into an agreement to transfer the UCOR subcontract scope of work for transportation services. UCOR approved the transfer and novated the subcontract after TFE demonstrated they were ready to perform the scope of work safely and compliantly,” Koentop said. “DOE did not approve the transfer, but we have met with UCOR and in the future all proposed UCOR subcontract novations will be submitted to DOE for review prior to implementation.”
When asked if that meant DOE had not been notified in advance of the TOPS-to-TFE contract shift, Koentop said the agency was informed “just as the transition was being completed.” He said DOE found out about the situation a couple of days before it was done. “We’re saying we want to know sooner next time so we can participate in the approval process,” he said.
UCOR awarded TOPS the waste transportation subcontract, worth approximately $14 million, on a sole-source basis in 2011. Work performed under the contract included waste hauling, managing a transportation hub and maintaining the haul road between the East Tennessee Technology Park and the Oak Ridge on-site disposal cell. In mid-January of this year, TOPS’ office in Oliver Springs, Tenn., were raided by law enforcement agents in a move that remains shrouded in mystery. TFE Vice President Tony Hunter told WC Monitor this spring that TOPS had approached his company after the raid to discuss selling the UCOR subcontract. Hunter declined to provide details of the acquisition, but said the subcontract had represented an “opportunity” for TFE to get into new types of work. “It worked out great for us,” Hunter said.
