The U.S. Energy Department is extending the current contracts for both radioactive-waste tank operations and Central Plateau cleanup at the Hanford Site in Washington state for up to one year while it readies new awards.
The AECOM-led incumbent vendor managing underground radioactive waste tanks at the Hanford Site in Washington said in an Aug. 19 press release its latest contract extension could be worth $725 million. That figure is based on a one-year period.
Likewise, Jacobs subsidiary CH2M Hill Plateau Remediation Co. can make up to $500 million for an extension of up to one year for its cleanup operations at Hanford, Jacobs spokeswoman Marietta Hannigan said by telephone Friday.
“Jacobs will continue to deliver safe and efficient progress on the Hanford Plateau Remediation Contract during this period of change,” said Jacobs Aerospace, Technology, and Nuclear Senior Vice President Karen Wiemelt in an emailed statement.
If the extension lasts the full 12 months, CH2M would stay on the job from Oct. 1, 2019, to Sept. 30, 2020. The same goes for AECOM-led Washington River Protection Solutions (WRPS) for the Hanford tank contract. SNC-Lavalin subsidiary Atkins is the minority partner in WRPS.
The Energy Department signaled its intention earlier this month in an internal email to extend current contracts for both vendors. They would otherwise expire at the end of next month.
The DOE Office of Environmental Management on Aug. 13 filed formal notices of intent to extend both contracts. No notice of actual extension turned up in a federal online procurement search Friday.
The tank work by WRPS involves managing the 56 million gallons of radioactive waste stored underground at Hanford, eventually closing tank farms, and protecting the Columbia River. The Central Plateau Remediation work requires CH2M to continue with a slew of remediation tasks around the site, including completing demolition of the Plutonium Finishing Plant.
While both incumbent contractors could stay through Sept. 30, 2020, the agency says extensions will last only as long as needed after award of new contracts and transition periods to the follow-on providers. As recently as May, DOE had indicated both new contracts could be issued by the end of this month.
The Current WRPS tank business is valued at roughly $6.8 billion, and a new 10-year deal could be worth $10 billion to $15 billion. The current CH2M Central Plateau work is valued at about $5.8 billion, and a new 10-year pact could generate $7 billion to $12 billion.
“We are thrilled the DOE has announced its intent to extend Washington River Protection Solutions’ contract,” John Vollmer, president of AECOM’s Management Services group, said in the company news release. “This extension will enable our team at Hanford to continue its important work to reduce risk to the Columbia River by safely managing high level tank waste and preparing feed for the Waste Treatment and Immobilization Plant.”