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The Department of Energy’s National Nuclear Security Administration Thursday awarded a contract for management and operation of the Pantex Plant in Amarillo, Texas to a joint venture called PanTeXas Deterrence LLC, led by Lynchburg, Va. based BWX Technologies.
That is according to a notice on the federal government’s System for Award Management (SAM.gov). The award notice said the first major tranche of work will be worth $6.4 billion.
Multiple sources told Exchange Monitor that BWXT and Fluor are partners in the winning group. The National Nuclear Security Administration (NNSA) said in a press release the other partners are SOC LLC and the Texas A&M University System.
The winning team is believed to have beat out at least three other groups.
“This is an important contract win for us and leverages our unique core competencies and capabilities in nuclear operations,” Heatherly Dukes, president of BWXT’s Technical Services Group, said in a press release by BWXT emailed to Exchange Monitor. “The PanTeXas Deterrence team was purpose-built to bring the very best of industry experience together to meet crucial global security imperatives. We look forward to getting started with a strong emphasis on safe and secure operations in full support of NNSA’s integrated Nuclear Security Enterprise.”
The major award could, if all options are picked up by NNSA, be worth a total of $30 billion spread over 20, based on the NNSA press release.
The estimated value of the deal is $1.5 billion annually, NNSA said in the release. The contract includes a four-month transition period that could start in mid-July and a five-year base period with three five-year options, for a total contract period of up to 20 years and four months if all options are exercised.
The current management contract for both Pantex and the Y-12 National Security Complex and Pantex is held by Bechtel-led Consolidated Nuclear Security. The Pantex portion of’ contract expires on Sept. 30 and will be extended until the transition period.
“For over 40 years, Pantex has been the nation’s primary nuclear weapon assembly and disassembly center, allowing the nuclear deterrent to stay safe, secure, and reliable at all times,” said Jill Hruby, NNSA Administrator in the release. “The selection of PanTeXas Deterrence through full and open competition will help us accelerate weapon delivery and technology insertion, execute our infrastructure modernization, and continuously improve safety and security.”
Exchange Monitor continues to follow the story.
