Kenneth Fletcher
WC Monitor
4/04/2014
While Parsons submitted a “best and final offer” in late March for an agreement on commissioning and startup of the Savannah River Site’s Salt Waste Processing Facility, the Department of Energy is preparing to counter the offer, WC Monitor has learned. It is unclear whether Parsons will consider the counteroffer, or will stick to its final proposal. “DOE is reviewing Parsons’ offer in terms of what is in the best interest of the taxpayer,” according to a DOE spokesperson. DOE and Parsons reached a new agreement-in-principle last June on the construction portion of the plant. But since then, talks have dragged on for a separate agreement covering the startup portion. DOE’s fact finding process for the discussions begin in September, and formal negotiations began in December. But reviews have warned that delays beyond October 2013 could lead to issues at the project with retaining personnel.
The SWPF is part of DOE’s plans to greatly increase the rate of liquid waste processing at the Savannah River tank farms in order to support high-level waste tank closure. However, DOE and Parsons have had to negotiate a new contract for the project since Parsons submitted a revised estimate-at-completion in March 2012. That increased the project’s total cost by more than $400 million largely due to subcontractor delays in delivery of key components, making a new contract necessary. The new agreement reached last year covered only construction and pushed out completion of the facility from 2014 to late 2016, with commissioning and start-up to be covered by a future agreement. Parsons this week declined to comment.
