Lawmakers on a House Energy and Commerce Oversight and Investigations Subcommittee yesterday pressed Deputy Energy Secretary Dan Poneman about late adjustments to the evaluations of bidders on the National Nuclear Security Administration’s Y-12/Pantex contract, with one Republican suggesting that the changes don’t “smell right.” Rep. Morgan Griffith (R-Va.) pushed Poneman for answers on the subject, which helped lead the agency to select a Bechtel-led team over groups led by Babcock & Wilcox and Jacobs/Fluor for the $22.8 billion contract. The award has been twice protested, though the Government Accountability Office backed the ability of NNSA Source Selection Authority Michael Lempke to alter Bechtel’s scores in three areas based on his experience with the company during the consolidation of Naval Reactors laboratories. “On its face that doesn’t smell right to me,” said Griffith, whose district includes portions of Roanoke County, Va., which is near Lynchburg, where B&W’s Technical Services Group is headquartered. He added: “When the rules are changed at the last minute, it’s hard for people to honestly compete.” Poneman declined to comment, noting that the Y-12/Pantex procurement remains open. “Obviously we do everything possible to make sure we hew to all of the requirements—statutory, regulatory and ethical—that apply,” he said.
Rep. Marsha Blackburn (R-Tenn.) also questioned the $3.27 billion that Bechtel-led Consolidated Nuclear Security proposed it could save through merging the two contracts, asking how the committee could be “assured that NNSA’s nuclear production mission can be safely and effectively carried out under the big cost savings requirement in the procurement.” The cost savings proved to be vital to successful protests of the award, and NNSA is currently analyzing additional cost savings information submitted earlier this month by bidders. “We have a lot of concern over sacrificing the mission for the cost savings,” said Blackburn, who also questioned whether “any thought has been given to revisiting the premise of the RFP.” Poneman declined to discuss details about the procurement, but told Blackburn “we’re always looking at those things we can do to do the mission of the Department … safely and securely and in a manner that is cost-effective and that would all inform any RFP that we have.”
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