EM Determines Award Fees for Portsmouth and Paducah Contractors

LEXINGTON, Ky. – EM’s Portsmouth/Paducah Project Office (PPPO) has issued new award fee determinations for three of its prime contractors, including the contractor responsible for deactivation services at the Paducah Gaseous Diffusion Plant and the outgoing operating contractor for EM’s two depleted uranium hexafluoride (DUF6) conversion plants.  

   Contractor award fee evaluations determine the portion of annual contractor fees to be paid based on performance against stated objectives in accordance with annual award fee plans. EM releases information relating to contractor fee payments — earned by completing the work called for in contracts — to further transparency in its cleanup program.

   Scorecards summarizing the evaluations and other information can be accessed here.

Fluor Federal Services – Paducah

   Fluor Federal Services (FFS), the deactivation and environmental remediation contractor at the Paducah Gaseous Diffusion Plant, earned approximately $3.32 million, or 55 percent of the available award fee, for the performance period through July. 

   PPPO noted “good” program and project support and found FFS’s environmental safety and health, quality assurance, project, documents and associated support to be “satisfactory.” PPPO also found that FFS’s program and project management rating improved to “satisfactory” thanks to improved baseline management, cost projections and funds management. 

   Despite noting a continued need for management focus on safety compliance and other programs, PPPO said corrective actions are satisfactory, and found “continuous improvement in all areas of performance this evaluation period.”  EM also recognized FFS for a $2-million site-wide cost-savings initiative.

   “Overall FFS project support organizations are responsive and continue to seek cost savings,” PPPO noted. 

   FFS earned $2.3 million, or 54.7 percent, of performance-based incentive fees payable for specific tasks. These included facility deactivation and stabilization, utility and laboratory optimization, and surveillance and maintenance tasks. FFS reconfigured a power distribution system, deactivated the C-727 Building, replaced large roof systems on the C-335 and 331 buildings at a cost under budget, and removed lubrication oil from the uranium-enrichment process buildings.

   The Paducah deactivation contract was awarded to FFS in July 2014 and is scheduled to expire in July 2017. A new contract for deactivation and remediation is currently in a competitive procurement process.

BWXT Conversion Services – Portsmouth & Paducah

   BWXT Conversion Services LLC (BWCS), which operates the two facilities that convert DOE’s inventory of depleted uranium hexafluoride (DUF6) for reuse and disposal, earned $3.82 million. That’s approximately 70 percent of the available fee award for the performance period through September.

   Of that amount, $1.1 million was earned under six performance categories in which BWCS was rated from “satisfactory” (schedule) to “excellent” (small business use). BWCS was rated “very good” for cost control, and “good” for quality, management and regulatory compliance.

   Of the total fee, the contractor earned approximately $2.72 million, or 60 percent, of the amount available for several performance-based incentive activities. Many activities relate to completing corrective actions and work to restart the conversion plants following the contractor’s suspension of operations due to safety and maintenance issues. The resulting lack of DUF6 conversion production since the first quarter of fiscal year 2016 led to most of the fee loss.

   PPPO credited BWCS with progress toward a procedure-driven maintenance and operations culture, avoiding $2 million in costs, and developing video surveillance methods for hydrofluoric acid tank inspections.

   A follow-on, five-year contract for DUF6 conversion operations and management of the DUF6 storage-cylinder yards was awarded Sept. 29 to Mid-America Conversion Services (MCS). MCS is anticipated to assume project operations by Feb. 1, 2017.

Restoration Services, Inc. – Portsmouth  

   The Portsmouth environmental technical support services contractor, Restoration Services (RSI), posted a strong evaluation, scoring “excellent” in all categories of performance and earning $381,172, or 96 percent of the available award fee.

   RSI excelled in administrative support, environmental safety and health, project support, and program management for the performance period through September.

   “RSI has provided excellent support throughout the fiscal year and has met contract requirements and exceeded almost all of the performance goals and objectives for the period,” PPPO noted on RSI’s scorecard.