The AECOM-led incumbent vendor that is managing underground radioactive waste tanks at the Hanford Site in Washington state expects its latest contract extension from the U.S. Energy Department could be worth $725 million.
The business extension will keep Washington River Protection Solutions (WRPS) on the job for up to 12 months, from Oct. 1, 2019, to Sept. 30, 2020, the Los Angeles-based infrastructure specialist said in a press release Monday. SNC-Lavalin subsidiary Atkins is the minority partner in WRPS.
The Energy Department signaled its intention earlier this month in an internal email to extend current contracts for both waste tank operations and Central Plateau remediation contractors at the Hanford Site. The cleanup business held by Jacobs subsidiary CH2M HILL Central Plateau Remediation, along with the WRPS tank operations contract, would otherwise expire at the end of next month.
The DOE Office of Environmental Management on Aug. 13 filed formal notices of intent to extend both contracts.
No actual extensions had been posted as of Monday. The tank notice work requires WRPS to store and retrieve Hanford tank waste, close the tank farms, and protect the Columbia River. The Central Plateau Remediation contract notice says CH2M will continue with a slew of remediation tasks around the site, including completing demolition of the Plutonium Finishing Plant.
While both incumbent contractors could stay through Sept. 30, 2020, the agency says extensions will last only as long as needed after award of new contracts and transition periods to the follow-on providers. As recently as May, DOE had indicated both new contracts could be issued by the end of this month.
The Current WRPS tank business is valued at roughly $6.8 billion, and a new 10-year deal could be worth $10 billion to $15 billion. The current CH2M Central Plateau work is valued at about $5.8 billion, and a new 10-year pact could generate $7 billion to $12 billion.
“We are thrilled the DOE has announced its intent to extend Washington River Protection Solutions’ contract,” John Vollmer, president of AECOM’s Management Services group, said in the company news release. “This extension will enable our team at Hanford to continue its important work to reduce risk to the Columbia River by safely managing high level tank waste and preparing feed for the Waste Treatment and Immobilization Plant.”
