April 14, 2015

WIPP Contractor NWP Earns Only 7 Percent of FY?14 Available Fee

By ExchangeMonitor

Waste Isolation Pilot Plant contractor Nuclear Waste Partnership earned only 7 percent of its available fee in Fiscal Year 2014 after incidents shut down the repository, totaling $561,266 out of $8.2 million in maximum fee available, according to recently released fee information. WIPP was shut down for eight months of the fiscal year after a salt truck fire and radiation release in February 2014, and violations uncovered there have led to $18 million in penalties from the state regulator. The fee earned was reduced by two conditional payment of fee clauses, one reducing it 25 percent and the other by 50 percent. “Many of the performance-based incentives could not be met while the facility was closed,” according to a DOE statement. “As a result of NWP’s poor response and culpability in the two events at WIPP, CBFO applied reductions of fee but also provided opportunities for NWP to earn some fee back. The final result of these actions is that NWP earned only 7 percent of the total fee available for FY14.”

The scorecard listed numerous “significant deficiencies,” mainly uncovered after the February incidents, while noting “significant achievements,” mainly for accomplishments before the events. NWP also earned “satisfactory” ratings in all four subjective award fee criteria. “The Department is committed to completing recovery activities and restoring the Waste Isolation Pilot Plant facility to normal operations as quickly as possible while protecting the health and safety of our workers, the public and the environment,” a DOE spokesperson said. “In determining the award fee earned, the Carlsbad Field Office attempted to conduct a fair evaluation that considered all performance aspects throughout the year.”

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