The National Nuclear Security Administration spent $3.3 million to compete the combined Y-12/Pantex management and operating contracts, according to a cost-benefit analysis sent by the agency to Congress earlier this year. The report was mandated by Congress in the Fiscal Year 2013 and 2014 Defense Authorization bills due to questions from lawmakers about the cost savings expected from the contract merger, and largely defends the NNSA’s decision to combine the contracts. Congress also tasked the Government Accountability Office to review the NNSA’s report, and that review is ongoing.
The NNSA said the “single contract award further strengthens NNSA’s ability to move toward a fully integrated and interdependent enterprise and enhances mission performance, reduces costs, strengthens partnerships and improves stakeholder confidence. This integration improves mission capability while aligning with best business practices to achieve more mission requirements within available funding resources. Savings generated will be reinvested in the nuclear security enterprise (NSE) to improve safety, security, quality and infrastructure.”
According to the report, the acquisition phase of the procurement that began in October of 2008 cost $2.1 million, which included the travel, contract support services, and efficiency, merger and benchmarking studies. The remainder of the costs included travel during the competition phase of the procurement, but excludes federal salaries. Bechtel-led Consolidated Nuclear Security, which proposed $3.27 billion in cost savings over the 10-year life of the contract, took over management of the sites July 1. “As with any major contract competition there is uncertainty for the workforce, and this was possibly exacerbated by multiple protests in this case; however, the cost effectiveness of conducting the competition offset these concerns,” the NNSA said. “All mission activities and deliverables were met.”
Partner Content
Jobs