NNSA RELEASES Y-12/PANTEX CONTRACT, SHEDDING LIGHT ON FEE POTENTIAL

New Y-12/Pantex contractor Consolidated Nuclear Security can earn up to $39.9 million in performance fee under its new contract, plus tens of millions of dollars more as its share of the cost savings it plans to achieve as the new manager of the sites, according to the company’s new contract. The 235-page document released yesterday still lacks some key details—a spot for key personnel is left blank—but the Bechtel-led contractor’s fee is outlined. According to the document, CNS will earn $29.9 million in fixed fee during the course of its contract, and it could earn another $10 million in at-risk fee plus $21.4 million in cost savings fee. After the first year of the contract, all of the $39.9 million in performance fee becomes at-risk, while the amount of potential cost savings fee rises. The cost savings fee peaks at $46.8 million in year three of the contract, but in year two, the contractor can make up to $42.1 million, and in year four the company can make up to $42.5 million. In year five, the company can earn $26.9 million, which starts a steady decline in available cost savings fee, which ultimately dips to $14.1 million in year nine of the contract. All of the fee mentioned does not include work on the Uranium Processing Facility, which is not outlined in the document.