Office of Environmental Management

EM Commends Hanford Prime Contractor for FY16 Savings of $7.8 Million

August 31, 2017

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Frank Salaman, BNI manager of procurement and subcontracts for the WTP Project, displays EM’s letter recognizing the company for its more than $7.8 million in federal cost savings.
Frank Salaman, BNI manager of procurement and subcontracts for the WTP Project, displays EM’s letter recognizing the company for its more than $7.8 million in federal cost savings.

RICHLAND, Wash.EM lauded an Office of River Protection prime contractor for achieving federal cost savings of more than $7.8 million in procurements and subcontracts in fiscal year 2016 (FY16). 

   Ralph Holland, head of EM contracting activity, thanked Bechtel National, Inc.’s (BNI) Waste Treatment Plant (WTP) Project team for its commitment to EM’s Strategic Sourcing Initiative (SSI). The contractor saved $7.1 million in the SSI, the second-highest FY16 total of all participating EM prime contractors. 

   “The success of the SSI depends on you and you are doing an outstanding job,” Holland says in a letter to BNI.

   Holland noted that efficient and effective taxpayer stewardship has never been more important.

   “WTP-BNI is highly commended for your valued support in the success of the EM SSI and the continued achievement of the EM mission,” the letter says. “Your efforts serve as an example of excellence across the DOE complex.” 

   EM realized a total SSI savings of $59.4 million in FY 2016, surpassing the target savings goal of $36.8 million.

   The initiative applies an organized, systematic, and collaborative approach to acquire commonly used goods and services. It enables EM contractors to partner with companies to develop optimal solutions, share best practices, and create a strategic sourcing community.

   “EM prime contractors working together to leverage common commodities, thus enabling pricing and processing efficiencies, is critical to achieving the ultimate goal of maximizing taxpayer value for every dollar spent,” Holland says in the letter. 

   Savannah River Nuclear Solutions (SRNS), the management and operations contractor for the Savannah River Site, took first place in SSI FY16 savings with $7.8 million. Read the EM Update story on the SSI savings of SRNS and liquid-waste contractor Savannah River Remediation here

   BNI’s $7,841,000 exceeded the contractor’s FY16 goal of $3.1 million by 152 percent. The savings resulted from BNI’s strategic negotiations with vendors and use of EM-sponsored eProcurement and eSourcing tools, which allow contractors to obtain bids from different suppliers via an online portal.

   It was the second consecutive year EM commended BNI for surpassing its SSI goal. The contractor saved $3.4 million in fiscal year 2015.

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