PARSONS AND DOE CONTINUE SWPF CONTRACT NEGOTIATIONS

The Department of Energy and Salt Waste Processing Facility contractor Parsons are in the midst of contract negotiations at the Office of Environmental Management’s Consolidated Business Center this week. Parsons SWPF Project Manager Lou Jackson and Parsons Water and Infrastructure Group President Tony Leketa are at the CBC in Cincinnati this week with a negotiations team to continue negotiations with the Department on a new contract for the project. Talks on the contract stalled several weeks ago between Deputy Secretary of Energy Dan Poneman and Parsons Chief Executive Officer Charles Harrington on a potential cost cap or fixed-price contract. Instead a small group of Parsons and DOE officials have moved ahead with talks focused on reaching an agreement on a funding level, contract structure, and baseline that would see the project finished and into its initial startup and operations period. DOE and Parsons have been working on developing new plans for the project since estimated costs escalated about a year ago, when Parsons developed a new estimate for the project following lengthy delays in the delivery of 10 key vessels, and Parsons subsequently breached the cost cap on its current contract.

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