The Department of Energy has missed a previously stated target of June 30 to come up with a final fee determination for CH2M-WG Idaho’s first seven years of cleanup work at the Department’s Idaho site. The DOE Idaho Operations Office declined to comment yesterday on the cause of the delay, and did not provide a new anticipated schedule for finalizing CWI’s fee determination.
CWI’s ability to earn fee is tied primarily to its ability to complete work at or under the contract’s target cost. One issue that may still need to be resolved before a final fee determination can be prepared is whether CWI had properly allocated overhead costs among the work it performed under its first seven-year contract and non-target work. According to a DOE Inspector General’s Office report issued in May, while CWI initially anticipated performing approximately $89 million of non-target work, that increased to approximately $510 million in large part to stimulus funding provided by DOE. According to the report, CWI allocated approximately $128 million in general and administrative (G&A) costs to the non-target work, which was about $88 million more than originally planned for in its contract. As a result, the total cost for the target work was reduced. DOE had said, though, that it would not pay fee for the cost allocations.
