Despite multiple appeals of a contract awarded early this year, Babcock & Wilcox has failed to overturn a decision awarding management of the Y-12 and Pantex sites to a Bechtel-led consortium.
On Friday, the National Nuclear Security Administration reported it will continue with its original contract award, which includes management of Y-12's Uranium Processing Facility and a potentially lucrative option to oversee tritium operations at Savannah River in South Carolina. B&W had managed Y-12 and Pantex for more than a decade before the new contract, which the NNSA awarded in part based on promised cost savings from bidders. The winning consortium, called Consolidated Nuclear Security, includes Bechtel, Lockheed Martin, ATK Launch Systems and SOC, as well as subcontractors Booz Allen Hamilton and, if the tritium option is exercised, General Atomics.
The NNSA reassessed the bids after the Government Accountability Office upheld objections by B&W during an appeals process. Ultimately, though, the Department of Energy subagency reaffirmed its initial decision.
In a statement, B&W Technical Services Group President George Dudich said, “We are disappointed, as we believe our proposal, including revisions submitted after the Government Accountability Office sustained our initial protest, was the strongest choice, as originally determined by the Source Evaluation Board. … We will carefully evaluate information received during NNSA’s debriefing process in determining our next steps. In the interest of ensuring a transparent process, our team agreed to an open, two-part debrief and we hope that will be possible."