BWX Technologies has rolled up a trio of big “wins” in the Energy Department’s cleanup complex during the past 12 months and is hoping for more, President and CEO Rex Geveden said Wednesday.
“There remain significant pending opportunities including the re-award of the Savannah River [Site] liquid waste contract, Savannah River management and operations,” along with opportunities at the Hanford Site in Washington state and the Oak Ridge Site in Tennessee, Geveden said during BWXT’s quarterly earnings conference call.
The CEO did not elaborate. But BWXT within the past year has sent representatives to industry procurement briefings for the Hanford Central Plateau Cleanup Contract and the Hanford Mission Essential Services Contract.
The Plateau contract valued, at a potential $7 billion over 10 years, is currently held by CH2M Hill Plateau Remediation, which recently got an extension keeping it on through September 2019. Mission Support Alliance, a team of Leidos and Centerra Group, currently holds the current $3.2 billion Mission Essential Services or landlord contract at Hanford through May 2019. Bids on the new contract, potentially worth $6 billion over 10 years, are due Nov. 19.
During the fourth quarter the Energy Department expects to issue a draft RFP for a 10-year cleanup contract of the Oak Ridge Reservation with a potential value of $6 billion.
BWXT-led Savannah River EcoManagement in October 2017 was awarded a $4.7 billion, 10-year contract for liquid waste work at Savannah River. However, DOE gave all three bidding teams another shot at the ring after the Government Accountability Office in February upheld one protest against the initial award. The other teams are AECOM-CH2M and Fluor-Westinghouse. A re-award is expected soon.
Meanwhile, activity on the Savannah River management procurement is on hold until 2019. This summer the Energy Department extended the current contract for Savannah River Nuclear Solutions (SRNS) through July 2019. The incumbent venture is comprised of Fluor, Honeywell, and Stoller Newport News Nuclear.
In September, a Fluor-BWXT team received a 30-month extension, valued at $850 million, on its existing cleanup contract at the Portsmouth Site in Ohio. The extension keeps the vendor team on the job through March 2021. The full 10-year contract is valued at about $3.7 billion.
In April, Battelle Energy Alliance, for which BWXT is an integrated subcontractor, received a $5 billion successor contract for management and operations at the Idaho National Laboratory, through September 2024.
In December, DOE awarded a $1.4 billion, 10-year legacy waste cleanup contract at the Los Alamos National Laboratory in New Mexico to Newport News Nuclear BWXT-Los Alamos (N3B).
The contracts are all under BWXT’s Nuclear Services Group, which includes its DOE and National Nuclear Security Administration business. The segment, which employs about 500 people, reported third-quarter 2018 operating income of $6.5 million, up significantly from $0.8 million on a year-over-year basis. That was driven mostly by better operational performance, lower costs, and new contract starts, the company said.
