March 17, 2014

BNI EARNED SLIGHTLY LESS THAN HALF OF AVAILABLE WTP FEE FOR FIRST HALF OF 2013

By ExchangeMonitor

Bechtel National earned slightly less than half of the fee available for its work at the Hanford Waste Treatment Plant in the first half of this year, according to information the Department of Energy released yesterday. Out of an available $6.3 million, Bechtel National earned 49.6 percent, approximately $3.12 million. Bechtel National’s fee performance for the first half of this year matches the 49.6 percent the contractor received for its work at the Hanford vit plant in the first half of 2012, which represented Bechtel National’s lowest fee determination to date at the WTP. For the second half of 2012, Bechtel National chose to forgo any of the fee it could have earned in a move the contractor described as a “gesture of good faith” while the WTP was in a “state of evolution” with work underway to finally resolve long-standing technical issues.

For the first half of this year, DOE awarded Bechtel National approximately $1.87 million out of an available $3.78 million for project management performance; and approximately $1.25 million out of an available $2.52 million for cost performance, giving the contractor a rating of “satisfactory” in both areas, according to a one-page Department award fee scorecard. Among the “significant deficiencies” cited by DOE was continued concerns over Bechtel National’s quality program; delays in establishing corrective action plans for Priority Level 1 findings and in resolving safety basis issues; and “inadequate internal BNI integration of nuclear safety and facility design.” DOE also noted that Bechtel National only completed seven out of 20 planned milestones on time during the evaluation period. Bechtel National did come in for praise, though, in several areas, such as efforts to address quality assurance issues and effective management of contracts and procurements. Bechtel National also “demonstrated improved coordination and effectiveness between Bechtel National, Inc. (BNI) and ORP Engineering,” DOE’s award fee scorecard states, adding, “Project and construction site safety performance significantly exceeded expectations.”

In a message to employees, new Bechtel National Project Director Peggy McCullough emphasized that DOE had recognized the improvements made in several areas, but also stressed the contractor would work to address quality concerns, which have been a long-standing issues at the WTP. “While we don’t agree with all aspects of the Department’s evaluation of WTP Project quality for this period, we are continuing to aggressively identify and correct deficiencies to ensure that the completed facilities will fully meet quality requirements and DOE expectations for future nuclear operations,” McCullough said. “Listening to customer feedback is an important part of being a learning organization. To meet the DOE goal of verifying readiness to safely operate the WTP, we must address DOE’s concerns regarding quality pedigrees. We will satisfy those concerns.”

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