COULD DOE, PARSONS BE CLOSE TO AGREEMENT ON SWPF PROJECT?

Department of Energy cleanup chief David Huizenga hinted yesterday that DOE and contractor Parsons may be close to developing a path forward for completing the Savannah River Site Salt Waste Processing Facility. The two have been in talks for months over the development of a revised baseline for the project, which is neccessary because of cost overruns the project has experienced due to the delay of key facility components. At a House Appropriations Energy and Water Subcommittee hearing, Huizenga said that DOE is working with Parsons to put “the final touches on what we hope is an agreement-in-principle to move forward.” He did not provide any additional details in his testimony before the panel, and declined to comment when asked by WC Monitor on the sidelines of the hearing, citing the ongoing negotiations.

Primarily as a result of the delay in the delivery of a set of 10 vessels for the facility, Parsons developed and submitted last spring a revised estimate-at-completion for the project that increased its estimated cost by more than $400 million, to approximately $1.7 billion. Parsons’ revised estimate, though, would still open the plant in time to meet an October 2015 regulatory commitment for startup. Since then, Parsons and DOE have repeatedly clashed over what approach to take with funding and schedule for the facility, with the Department proposing schedules that would decrease funding and not allow the plant to startup up until many years after the 2015 target. DOE had previously looked to have a new baseline completed for the project in early 2013.