The federal government has lifted spending restrictions placed on Bechtel National purchasing after it addressed issues raised in a routine audit by the Pentagon’s Defense Contract Management Agency.
In an Oct. 5 announcement, Bechtel said it received notification on Oct. 1 that its purchasing system had been reapproved for subcontracting activities, including at the Waste Treatment Plant the company is building at the Hanford Site in Washington state.
“We completed the minor updates to our purchasing procedures for the areas that the government believed could be improved,” Bechtel spokesman Fred deSousa said. “The government has now validated that we have implemented these changes to their satisfaction.”
While the DOD audit covered the full scope of Bechtel National’s subcontracting on federal contracts, restrictions on Department of Energy work were limited to the Hanford Site in Washington state. From about July 20 through September, Bechtel was required to receive consent from the DOE Hanford Office of River Protection contracting officer for key purchases. Those included fixed-price agreements valued at $150,000 or more and all flexibly priced agreements, such as those with expenses reimbursed based on labor hours or costs.
“We experienced no negative impact to ongoing work at the Waste Treatment Plant or any other project,” deSousa sad.
The February audit covering Bechtel National procurement at multiple locations across the nation found that some of the subcontracts checked missed required paperwork, including documentation verifying that the subcontractor had not been suspended or debarred from performing federal work. In some cases, the documentation showing how the subcontractor was picked was not detailed enough. In addition, Bechtel in some instances did not adhere to its policy of giving the federal field office covering the project 24 hours notice of a subcontract award.
The audit also covered subcontracting at Bechtel National chemical weapons destruction sites in Colorado and Kentucky.
Consolidated Nuclear Security LLC — the contractor for the Y-12 National Security Complex in Oak Ridge, Tenn., and the Pantex Plant in Amarillo, Texas — is led by Bechtel but does not use a Bechtel purchasing system.
