Last Updated: August 23, 2022 by cpanel02

NNSA Cancels $28B Site Management Deal To Split Work Up

The National Nuclear Security Administration has canceled a $28 billion contract to run two of its national security sites following related protests,…

In a blow to Fluor and Amentum, the National Nuclear Security Administration this week canceled a potentially 10-year, $28-billion contract for a joint venture of the two companies to manage the agency’s main nuclear-weapon production sites.

At the same time, the semiautonomous Department of Energy nuclear weapons agency announced it would extend the Bechtel-led incumbent at the sites, Consolidated Nuclear Security (CNS) for at least another two years at both sites, with an option for a third year, plus a pair of one-year options beyond that to keep managing Y-12 alone.

It’s a landscape-altering reversal for industry after November’s award, to the Fluor-led Nuclear Production One joint venture, of a combined Pantex/Y-12 contract that could have run a decade, with options. But losing bidders quickly protested the award, citing a conflict of interest involving — as reported first by the Exchange Monitor — a former NNSA employee who joined a subcontractor of the Fluor team.