Jacobs Engineering Group is in discussions to divest its 41 percent share of Mission Support Alliance, the support services contractor at the Department of Energy’s Hanford Site in Washington state.
Jacobs’ acquisition of CH2M, which was completed on Dec. 15, leaves the new owner with a conflict of interest at Hanford. Along with being part owner of Mission Support Alliance, the international engineering company now owns CH2M Hill Plateau Remediation Co., DOE’s contractor for environmental remediation of Hanford’s central plateau.
The contract awarded to Mission Support Alliance in 2009 bars its owners from conducting work under other key contracts. Mission Support Alliance provides site-wide services at Hanford, such as security, road maintenance, and information technology, as well as portfolio management. Its portfolio management services help the Department of Energy make informed decisions on environmental cleanup work across all Hanford contracts to save money, evaluate alternatives, and meet remediation deadlines and standards.
The lead owner of Mission Support Alliance is Leidos, with a 47 percent share. Centerra Group owns the remaining 12 percent share. The company’s 10-year contract is valued at about $3 billion and is set to expire May 25, 2019.
The ownership talks appear focused on selling Jacobs’ stake in Mission Support Alliance to its partners, though Jacobs has not responded to requests for comment.
The Energy Department has issued a draft request for proposals for the next Hanford support services contract, which could be worth $4 billion over 10 years. BWX Technologies has confirmed its interest in the contract, while Leidos, Centerra, and CH2M were among the companies to send representatives to a DOE information session on the work last week.
