Kenneth Fletcher
WC Monitor
1/10/2014
West Valley Demonstration Project cleanup contractor CH2M Hill B&W West Valley, LLC, earned about 60 percent of the total award fee available for the evaluation period that ran from March 1, 2013, through the end of August, according to an award fee determination scorecard recently posted by the Department of Energy. CHBWV earned $200,000 in award fee for the period out of $331,178 available. The score marks an improvement over Fiscal Year 2012, when CHBWV earned only about one-sixth of its total available award fee. It’s unclear how CHBWV fared in the first half of Fiscal Year 2013, as DOE did not respond to requests this week to make that information available.
For the latest assessment period, DOE listed no significant achievements and no significant deficiencies. In the project management category CHBWV earned a “satisfactory” mark, its lowest rating out of the four categories assessed. The scorecard states that “schedules still demonstrate the need for detailed planning and traceability. Field level schedules provided to Federal Project Directors are not integrated, either horizontally or vertically, with the baseline schedule. Work planning associated with the site security control account management, especially as it relates to the identification and planning for the issues associated with reduced FY 14 funding was also a concern.” CHBWV earned a “good” rating on business management, and DOE noted that “improvements need to be addressed in the area of Cyber Security and maintenance of the GSA Fleet.”
‘Wrong to Say We’re Not Disappointed’
CHBWV this week said that the contractor is striving for improvements. “It would be wrong to say we were not disappointed with our award fee scorecard, but this score represents an improvement over previous award fee periods which is indicative of our continuous improvement processes,” CHBWV President and General Manager Dan Coyne said in a statement. “Although award fee is only part of our fee structure under this contract, we will not be satisfied until we achieve and maintain full award fee as recognized by our customer.”
High Marks in Safety and Regulatory Categories
CHBWV earned its highest marks, or “very good” ratings, in safety, health and quality management, and Environmental and Regulatory Strategy. In the safety and health category, DOE noted in the scorecard “successful implementation” of the contractor’s Integrated Safety Management System, “notable Quality Assurance and Emergency Management performance,” “interactive senior management field presence,” and “commendable” support at the 01-14 building demolition. On environmental and regulatory, DOE noted CHBWV’s efforts in public relations and regulator communications, delivery of documents, and response to DOE concerns on internal coordination.
Score Improvement Over FY ‘12
CHBWV has faced challenges since taking over cleanup work at the small New York state site in August 2011. In FY ‘12, CHBWV earned $100,000 out of $577,000 available in award fee, all of which came in the second evaluation period between March and August 2012, since the contractor did not earn any award fee in the first evaluation period for FY ‘12 (WC Monitor, Vol. 23 No. 53). That year the contractor struggled to gain approval for its baseline and also experienced the early departure of its general manager, which resulted in a fee reduction of $250,000. Contractor officials told WC Monitor in early 2013 that CHBWV has a strict contract in which it must exceed expectations to earn award fee in many cases (WC Monitor, Vol. 24 No. 4). “We’ve got a unique award fee. If you meet expectations it results in zero award fee,” CHBWV General Manager Dan Coyne said at the time.
