The National Nuclear Security Administration (NNSA) cited a below-average performance for CB&I AREVA MOX Services, the contractor building the Savannah River Site’s Mixed Oxide Fuel Fabrication Facility (MFFF), in awarding the company less than half of the available award fee for work done during fiscal 2015. The information was released after nuclear watchdog SRS Watch filed a freedom of information request.
CB&I AREVA MOX Services could have earned about $8.9 million for work completed during the budget year that ended Sept. 30, 2015. Instead, the contractor earned about $4.3 million, or 49 percent, with the agency saying that “overall performance is below the level needed for successful project execution, as culminated in cost overruns and schedule delays.” The agency overall gave MOX Services a “satisfactory” rating.
The MFFF would be used to convert surplus U.S. plutonium into commercial reactor fuel, primarily 34 tons of material covered under a nonproliferation deal with Russia. But the project is behind schedule, and the Department of Energy says its life-cycle cost could run as high as $51 billion – three times the original $17 billion estimate. The Obama administration has proposed to kill the project in favor of a dilute and dispose plan for the plutonium, but has run into stiff resistance from the House of Representatives.
In a breakdown of the award fee, the NNSA only gave CB&I AREVA MOX Services 40 percent of its possible award for project management, citing “inconsistent NNSA customer interactions and project alignment,” along with a lack of accountability in engineering work and among the MOX Board of Governors. Other project management areas that need improvement include schedule performance, re-planning work, and developing a cost-conscious culture, according to the NNSA.
In the construction evaluation, the NNSA gave the company a 50 percent rating. While the federal agency commended the contractor for progressing through glove-box installations and piping, MOX Services was docked for “excessive” delays and interruptions, and low productivity. The NNSA did not go into further details in the report. Other areas of concern include a lack of transparency in monthly reports, and, in one instance, key personnel changes that were made before the receipt of approval.
CB&I AREVA MOX Services did receive an 89 percent rating for environmental safety and health, including zero violations filed with state and federal regulators. In addition, the contractor received a 93 percent rating for safety and security, though the NNSA did cite instances in which computers were found unlocked and unattended and documents were found unsecured.
