New Partnership Shapes Future of Nuclear Security, Saves Taxpayers over $3 Billion
WASHINGTON, D.C. – In a move that shapes the future of the United States’ nuclear security enterprise and will save $3.27 billion in taxpayer dollars over the next decade, the National Nuclear Security Administration (NNSA) today announced that Consolidated Nuclear Security, LLC (CNS) has been selected to be the management and operating contractor for the Y-12 National Security Complex in Oak Ridge, Tenn., and the Pantex Plant near Amarillo, Texas. The contract also includes construction project management of the Uranium Processing Facility (UPF) at the Y-12 National Security Complex, and an option for unexercised option for Savannah River Tritium Operations at the Savannah River Site in near Aiken, S.C.
Comprised of Bechtel National, Inc; Lockheed Martin Services, Inc; ATK Launch Systems, Inc; and SOC, LLC, CNS will begin a four-month transition immediately. Additionally, CNS will use subcontractors Booz Allen Hamilton, Inc as Merger and Transformation specialist, and General Atomics for Savannah River Tritium Operations if that option is exercised by NNSA in the future.
“Our nuclear production capabilities are critical to our national security, and this contract puts NNSA in a position to improve mission delivery by generating significant savings that will be reinvested to improve safety, security, quality, and infrastructure,” said NNSA Administrator Thomas D’Agostino. “This award will have a lasting impact on NNSA for years to come. It is the culmination of years of hard work focused on continuously improving the way we operate, saving taxpayer dollars, and aligning ourselves for the future.”
“We found a strong, experienced partner in CNS,” added NNSA Principal Deputy Administrator Neile Miller. “Their team, and the leadership and capabilities they bring with them, are an exciting addition to the NNSA family. Their focus on continuously improving while driving for cost efficiencies helps us plan for the future while ensuring that we’re delivering on our commitments to our partners.”
CNS will take over NNSA’s mission activities under the new contract starting May 1, 2013. The base term of the contract is 5 years, with options that may extend the term up to an additional 5 years. To be eligible for continued performance beyond the fifth year, CNS will be required to deliver on promises made in its proposal regarding efficiencies and to continue to meet mission and other contract requirements consistently. If NNSA’s option for Savannah River Tritium Operations is exercised at the end of year one, the contract includes a total available fee of approximately $446 million to manage the three sites for DOE and NNSA work, depending on CNS’ quality of performance. CNS may also earn up to an additional $263 million as their share of savings, though CNS cannot share any savings related to employee benefits.
CNS will also be responsible for designing and overseeing construction of the new Uranium Processing Facility (UPF) at Y-12, though NNSA has not determined who will ultimately build the facility.
Together, Pantex, Y-12, and Savannah River are integral parts of NNSA’s nuclear production efforts, delivering products and services focused on surveillance and maintenance of the Nation’s nuclear weapon stockpile. Each site provides unique capabilities in areas such high explosives, precision machining, and tritium production. Additionally, CNS will be responsible for the integration of production activities across the Nuclear Security Enterprise (NSE).
The proposed single contract award will further strengthen NNSA’s ability to move toward a fully integrated and interdependent enterprise which will enhance mission performance, reduce costs, strengthen partnerships and improve stakeholder confidence. Specifically, NNSA laid out four objectives that will be met through this contract, which are:
The newly formed NNSA Production Office will have the primary responsibilities associated with administering the contract.
Established by Congress in 2000, NNSA is a semi-autonomous agency within the U.S. Department of Energy responsible for enhancing national security through the military application of nuclear science. NNSA maintains and enhances the safety, security, reliability and performance of the U.S. nuclear weapons stockpile without nuclear testing; works to reduce global danger from weapons of mass destruction; provides the U.S. Navy with safe and effective nuclear propulsion; and responds to nuclear and radiological emergencies in the U.S. and abroad.