Parsons on Saturday rejected what has been described as the Department of Energy’s ‘best and final offer’ on a new baseline for the Salt Waste Processing Facility at the Savannah River Site, WC Monitor has learned, leaving the path forward for the project uncertain. DOE and SWPF contractor Parsons have been in talks for months over the development of a revised baseline and accompanying contract changes, and DOE gave its most recent offer to Parsons on Thursday, requesting a response within 48 hours. The proposal, which included a hard cost cap and envisioned roughly $80 million a year in annual funding, was rejected by Parsons’ leadership on Saturday. DOE declined to comment yesterday, with spokeswoman Kristen Ellis saying in email, “we do not comment on contract negotiations.” Parsons was unavailable for comment.
Just a few weeks ago, the two sides appeared close to an agreement, with DOE cleanup chief David Huizenga telling House appropriators at a mid-March hearing that the Department was working with Parsons to put “the final touches on what we hope is an agreement-in-principle to move forward.” Primarily as a result of the delay in the delivery of a set of 10 vessels for the facility, Parsons developed and submitted last spring a revised estimate-at-completion for the project that increased its estimated cost by more than $400 million, to approximately $1.7 billion. Parsons’ revised estimate, though, would still open the plant in time to meet an October 2015 regulatory commitment for startup. Since then, Parsons and DOE have repeatedly clashed over what approach to take with funding and schedule for the facility, with the Department proposing schedules that would decrease funding and not allow the plant to startup up until 2023 or later. DOE had previously looked to have a new baseline completed for the project in early 2013.
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