Todd Jacobson
NS&D Monitor
10/31/2014
Consolidated Nuclear Security, the Bechtel-led team that took over management of Y-12 and Pantex in July, has awarded a no fee subcontract to its parent company Bechtel National, Inc. to build the Uranium Processing Facility, UPF Project Director Brian Reilly said in a message to employees this week. The approach was outlined in CNS’ proposal for management of Y-12 and Pantex, but the National Nuclear Security Administration authorized the contractor to implement the strategy Oct. 29. “The subcontract approach will allow CNS to access and leverage BNI’s processes and tools that have proven to be successful on numerous large and complex EPC projects around the world,” Reilly said in the message. The Y-12/Pantex contract that was initially awarded to CNS in January of 2013 included two Contract Line Item Numbers, one for management of the sites and a second for construction of UPF.
Reilly said most CNS project employees—believed to be about 200—will transfer to Bechtel National Jan. 1, while staff augmentation and Basic Ordering Agreement (BOA) subcontractor employees working on design of the facility will not be affected, though Bechtel National will take over management of the BOAs. Some project officials, like Reilly, will remain CNS employees. In a background document, Bechtel said most new hiring will occur in Oak Ridge but said some new jobs will be created in Bechtel’s Reston, Va., office. “By leveraging Bechtel’s resources and adding this group of professionals, this will allow the highest level of engineering support, with comprehensive capabilities, to be immediately available to CNS,” Bechtel said in the background document. Layoffs are not expected as part of the transition, Reilly said.
CNS will retain responsibility for the project and will earn fee for the work, but the subcontract with Bechtel does not include any fee and is expected to result in a cheaper and more efficient approach to the project, CNS said. The new strategy “provides engineering solutions more efficiently and cost effectively to our customers,” Bechtel said in the background document. “BNI has the capability to move personnel on and off the project without M&O administrative process and cost and can deploy personnel with specialized skills for short-term assignments for special projects.”
The NNSA scaled back its plans for UPF earlier this year in the wake of massive cost increases to the project. In its place, the agency is pursuing a plan to replace uranium production capabilities currently housed in Building 9212 with a smaller facility and by using some existing facilities.
