WASHINGTON, DC - The Department of Energy (DOE) announced today a new accelerated environmental cleanup contract has been finalized with Bechtel Jacobs Company LLC for work at sites in Oak Ridge, Tennessee.  The $1.8 billion five-year cost plus incentive fee contract is effective October 1, 2003.

Under the accelerated cleanup approach, approximately $1.4 billion in cost savings is realized over the life of the Oak Ridge program.  This approach resulted from negotiations last year between DOE, the U.S. Environmental Protection Agency and the state of Tennessee where an agreement was reached to expedite cleanup and reduce health risks at the Oak Ridge site.

"We are extremely pleased that Bechtel Jacobs has committed to a contract that reflects DOE's mission to accelerate cleanup at our facilities in Oak Ridge," Energy Secretary Spencer Abraham said.  "This will allow us to have a high-risk cleanup work in Oak Ridge completed by 2008."   

The contract outlines four major project areas, each with a specific schedule of results and incentive fee to ensure accountability.  These include:

• East Tennessee Technology Park - completion of cleanup at the former gaseous diffusion plant site by September 30, 2008.
•  Waste Disposition - treatment and disposal of all legacy low-level waste and mixed low-level waste by September 30, 2005.
• Melton Valley - completion of all cleanup work outlined in the Melton Valley Record of Decision near Oak Ridge National Laboratory by September 30, 2006.
• Balance of Program - completion of all remaining cleanup projects, including the off-site Atomic City Auto Parts and David Witherspoon sites by September 30, 2008.

The contractor will be able to earn a target fee of $149 million for successful contract performance, with a range of a minimum fee of $41 million to a maximum of $249 million.

Media Contact(s):
Dolline Hatchett, (202) 586-5806
Walter Perry, (865) 576-0885