Bechtel-led Salado Isolation Mining Contractors (SIMCO) is receiving three additional years to manage and operate the Department of Energy’s Waste Isolation Pilot Plant (WIPP) near Carlsbad, N.M., DOE said early Wednesday.
With the three-year extension, Salado will continue to run WIPP from Oct. 1, 2026 through Sept. 30, 2029, DOE said in a news release.
The WIPP salt mine is the nation’s only deep underground disposal site for defense-related transuranic waste. The Salado contract is currently valued at $3.4 billion, based on a DOE contract chart.
A staff official with Nuclear Watch New Mexico, Scott Kovac, found it odd that SIMCO was being given a three-year extension rather than a one-year extension.
“First, why did SIMCO get a three-year extension when the contract calls for six 1-year extensions?,” Kovac said in an email to Exchange Monitor. The DOE announcement from July 2022 said there would be a four-year base period plus up to six one-year extensions. “I would say, “Giving SIMCO a 3-year extension when DOE only needed to give 1 year, removes a major consequence if SIMCO performs poorly next year.”
DOE was impressed with Salado’s performance during fiscal 2024, awarding it most of its potential fee. Although a June Government Accountability Office report did find there were a lot of problems with aging infrastructure at WIPP, DOE said most of the issues date back to the prior contractor.
DOE’s Office of Environmental Management said in the Wednesday release that Salado has demonstrated a strong commitment to safety, going without a recordable injury since February.
In addition, the contractor has met its shipping goals for three consecutive years and has completed a couple of major infrastructure projects, a new underground ventilation system and a utility shaft that will serve as an extra hoist, DOE said.
“We are pleased to extend SIMCO’s contract for the next three years,” said Mark Bollinger, the manager of DOE’s Carlsbad Field Office in the release. “SIMCO has been an exceptional partner.”
“We appreciate DOE’s continued confidence in our team and the work we deliver,” said Ken Harrawood, SIMCO president and program manager.
In its own press release, Bechtel said SIMCO has handled 1,000 shipments since taking over WIPP management three years ago.
“Bechtel’s close partnership with DOE, our strong safety culture, and delivery focus has enabled us to lay the groundwork for safe, compliant and effective operations at WIPP for decades to come,” Ben Souther, Bechtel’s general manager of environmental and security, said in a Bechtel statement.
Los Alamos Technical Associates as a New Mexico based teaming subcontractor for SIMCO. Bechtel-led SIMCO formally took over WIPP from an Amentum-BWX Technologies partnership in February 2023.