Department ‘Not Satisfied’ With Performance of URS
Mike Nartker
WC Monitor
7/11/2014
Unhappy with the current performance of URS at the Separations Process Research Unit (SPRU) D&D project, the Department of Energy’s Office of Environmental Management acknowledged this week that it may not be able to meet its latest goal of completing work at SPRU by the end of Fiscal Year 2015. “Although it is possible to complete the project by the end of Fiscal Year 2015, the work is currently not progressing at a pace to support completion by the end of 2015,” a DOE spokesperson said in a written response. “Although URS continues to make safe and steady progress at SPRU, DOE is not satisfied with URS’s overall performance on the cleanup at SPRU. Work is not proceeding at an optimal pace, however at this point URS is funding the project as a result of exceeding the negotiated contract cost cap,” the spokesperson said. For its part, URS declined to comment this week.
The SPRU D&D project entails the removal of two buildings used in the 1950s to research chemical processes for separating plutonium and uranium from irradiated materials. The project was initially expected to be completed in 2011, but in the fall of 2010 a set of contamination incidents occurred during open-air demolition activities at one of the two SPRU buildings that resulted in the spread of low levels of contamination to the broader Knolls Atomic Power Laboratory, where SPRU is located, as well as to a local river. The contamination incidents helped to stall work at SPRU for approximately two years, and led to changes in how D&D would be performed at the site, chiefly through the addition of enclosures constructed around the buildings with ventilation systems.
Still No Sign of When Final Cost for Project Will be Known
Also in response to the contamination incidents, in 2011 DOE moved to reach a contract modification with URS to set up a cost-sharing approach for completing work. That approach entails DOE being responsible for all project costs up to $105 million; DOE and URS splitting all costs incurred from $105-145 million; and URS being fully responsible for covering all costs exceeding $145 million. Since the contract modification was finalized, though, URS has been pushing back against being held responsible for significant portions of the costs to date incurred at SPRU, which have included, among other issues, addressing the impacts of bad weather at the site.
Both DOE and URS declined to answer this week when asked if a Department goal to establish a final cost-and-schedule baseline for the SPRU D&D project by the end of this fiscal year is on track for being met. In a filing with the Securities and Exchange Commission this spring, URS said that as of April 4, it had incurred a total project cost of $271 million at SPRU. URS also warned in its filing that “due to continuing delays and disagreements about the responsibilities for the scope of the remaining project completion costs,” it is unable to determine its responsibility for the remaining project costs, “which may exceed $300 million.”
Characterization Work Underway, Equipment Removal Underway
According to DOE, the latest work URS has completed includes the removal of more than 30,000 gallons of contaminated water from the basement of one of the two buildings to be demolished—G2—as well as the removal of demolition debris on the first floor level of the other building—H2—and re-established access to the lower level of that building. “URS has moved its attention to the G2 building where it has commenced process equipment and piping removal and characterization sampling and surveys of the lower levels of the G2 building,” the DOE spokesperson said.
The spokesperson noted, “Prior to the start of structural demolition of the G2 building, characterization, piping and equipment removal must be completed. Because these are ongoing in Building G2, there has not been a date determined by our contractor at this time for demolition.” Characterization activities at Building H2 set to begin this summer, the spokesperson said, adding, “URS is removing miscellaneous demolition debris and some process piping in the evaporator bays.”
