Mike Nartker
WC Monitor
7/18/2014
The Department of Energy imposed the maximum possible fee reduction when it chose to cut the amount of fee Nuclear Waste Partnership can earn this fiscal year by 25 percent in response to the fire that occurred in early February at the Waste Isolation Pilot Plant, according to information DOE released this week. WC Monitor first reported last week DOE’s move to cut NWP’s fee in FY 2014 by approximately $2 million, though the contractor has the ability to recover half of that by implementing corrective actions. The 25 percent reduction was the maximum allowed under NWP’s contract for what DOE has dubbed a “second degree performance failure,” according to a June 23 letter from a Department contracting officer to NWP informing the contractor of the fee reduction.
The decision to impose the maximum allowable fee reduction for the fire was made by the Conditional Payment of Fee board, according to DOE, which was established under EM’s Head of Contracting Authority and includes representatives from several other sites. It remains to be seen what action, if any, DOE will choose to take against NWP for the radiological release that also occurred at WIPP in February that shutdown the facility for the foreseeable future. “The Department is not considering revision or termination of the contract pending the results of the radiological release investigation,” a DOE spokesperson said in a written response this week. “The federal and contractor workforce is working to complete recovery activities and restore the Waste Isolation Pilot Plant facility to normal operations while also implementing necessary corrective actions and ensuring the health and safety of our workers, the public and the environment”
NWP is working to “address corrective actions and to implement a technically sound, cost effective recovery plan that will allow the Waste Isolation Pilot Plant (WIPP) to resume disposal operations for defense transuranic waste in a manner that is protective of our employees, the public and the environment,” contractor spokesman Donavan Mager said in a separate response. He added, “The activities required during recovery efforts at WIPP are covered under the existing Managing and Operations (M&O) contract, and NWP continues to perform under the contract, with significant oversight from the Department.”
Investigation Finds Fire Was Preventable
The fire occurred Feb. 5 and involved a salt haul truck. A DOE investigation determined that the fire most likely started when a buildup of flammable fluids on the truck, such as diesel fuel or hydraulic fluid, came in contact with a hot surface such as the catalytic convertor, and concluded that the incident had been preventable. The Accident Investigation Board concluded that the root cause of the fire had been a failure by NWP “to adequately recognize and mitigate the hazard regarding a fire in the underground,” states the report outlining the investigation’s findings. “This includes recognition and removal of the buildup of combustibles through inspections, and periodic preventative maintenance, e.g., cleaning and the decision to deactivate the automatic onboard fire suppression system,” the report said.
DOE has estimated that the fire caused at least $2.5 million worth of damage. “The underground fire caused significant costs to be incurred by DOE,” the June 23 letter says. “As of April 30, 2014, NWP has estimated approximately $848,700 in costs directly associated with the fire event. Additional costs continue to be incurred for cleaning, decontaminating, renovating, replacing or rehabilitating property.”
