October 29, 2014

Klotz: Announcement on Kansas City Plant Contract Coming ‘Very Soon’

By ExchangeMonitor

With about 11 months left on Honeywell Federal Manufacturing & Technologies’ contract to run the National Nuclear Security Administration’s Kansas City National Security Campus, NNSA Administrator Frank Klotz said yesterday that an announcement on the contract will come “very soon.” Honeywell’s contract to run the plant expires Sept. 30, 2015, and Energy Secretary Ernest Moniz said in August that he hoped a decision would be made a year in advance of the contract’s expiration, but gave few hints about plans for the contract. Klotz followed suit at a Defense Writers Group event, disclosing no details about whether NNSA plans to extend Honeywell’s contract or open up the first major management and operating contract procurement since Y-12/Pantex. “You can expect an announcement on Kansas City very soon, and you’ll have to wait until the announcement to hear what it will have to say,” Klotz said.

The Kansas City contract is the first of three major site M&O contracts that expire in the next two-and-a-half years; National Security Technologies’ Nevada National Security Site contract expires in September of 2016, and Lockheed Martin’s Sandia National Laboratories contract runs out in April of 2016, though there is an option for another year to be added. “The approach in the past was to deal with each of those in sufficient time to make sure you have time to do all the various steps in the process of coming up with a new contract when the expiration comes up,” Klotz said. “My expectation is we will probably take them as they come due.”

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