WASHINGTON, DC – U.S. Energy Secretary Samuel Bodman today announced that Washington Closure, LLC has been awarded the contract to manage the clean up and remediation of the Columbia River Corridor at the Department of Energy’s Hanford Reservation in the state of Washington.
The five-member team includes the Washington Group International Inc., Bechtel National Inc., CH2M Hill Inc., Eberline Services Inc., and Integrated Logistics Services Inc.
The Columbia River Corridor is composed of roughly 210 square miles along the outer edge of the Hanford Site. The contract calls for cleaning up and taking down hundreds of excess facilities, remediating waste sites and burial grounds and placing deactivated plutonium production reactors into safe and stable condition. Work will include projects in Hanford’s 100 Area, where nine plutonium production reactors created material for nuclear weapons; the 300 Area, where uranium fuel was fabricated and laboratory facilities reside; facilities in the 400 Area (except the Fast Flux Test Facility); and two complex and highly-radioactive burial grounds in the 600 Area (618-10 and 618-11).
“Awarding this important and high-profile contract is a major step forward in the Hanford cleanup,” Secretary Bodman said. “It will get us the best of what both large and small businesses have to offer – experience, innovation, and performance – to ensure we meet our commitment of safe, protective cleanup of this key area within the Hanford Site.”
The “cost-plus-incentive-fee” contract is valued at approximately $1.9 billion over a seven-year period, a savings of $2 billion to $3 billion over prior Hanford Site cleanup estimates. For every dollar the work comes in under Washington Closure’s “target cost,” the company will receive $.20 in additional fee; for every dollar in increased expense, it will lose $.20 in fee. There are also enforceable contractual requirements for small business participation. Sixty percent of the work must be subcontracted – with 50 percent of that subcontracted work going to small business. A minimum of three of every 10 contract dollars will flow to small business.
The goal is to clean up this area of the Hanford Site by 2015, with incentives for Washington Closure to accelerate completion to 2012. Regulatory cleanup agreements will be met and early cleanup priorities will focus on those projects that pose the greatest risk to the environment.
“Three qualified teams with the capability to perform this project each submitted a proposal,” said Paul Golan, Principal Deputy Assistant Secretary for Environmental Management. “The Washington Closure proposal provided DOE an obvious best value solution with the highest confidence and the lowest cost to complete the closure of the Hanford Site River Corridor.”
Media contact: Mike Waldron, 202/586-4940