May 29, 2014

NNSA RELEASES DETAILED FY 2013 PERFORMANCE EVALUATION REPORTS

By ExchangeMonitor

The National Nuclear Security Administration yesterday released the detailed Fiscal Year 2013 Performance Evaluation Reports for its eight sites, shedding light on what its contractors did well—and not so well—during FY 2013 (links to the reports can be found on the NNSA’s web site). B&W Y-12, still working to repair its image after the July 2012 security breach at the site, was the low scorer across the complex, earning 57 percent of its at-risk fee ($43.9 million out of $76.6 million available) despite efforts to shore up security and safety at the site in the wake of the security breach. While there were no major slip-ups like the security breach, the PER revealed that the contractor was downgraded for continuing problems in the area of security and for challenges on the Uranium Processing Facility project. In July of 2013, a machine gun was accidentally fired inside an armored vehicle, which the NNSA said was an indication that the site’s security program “requires continued management attention.”

The report also noted that the UPF project had a “challenging year” as it was plagued by “problems in configuration control of design criteria and estimate validity” that it said “continue to impact the project despite significant government interaction to highlight these issues.” The report also noted that the project’s baseline for engineering and design has continued to increase since a mid-year replan, and the “Total Project Cost has been impacted by growth in the quantity of commodities and the use of management reserve has exceeded plan.” The report also praised the contractor in many instances, noting that B&W Y-12 “demonstrated leadership supporting the current NNSA mission direction, responding appropriately to issues and sought opportunities for continuous internal improvement backed with the parent company’s commitment.”

Savannah River Nuclear Solutions also took a significant hit on its fee in Fiscal Year 2013, receiving just 68 percent of its available fee, as successes were offset by struggles on the Waste Solidification Building project and plutonium oxide production efforts. According to the PER, the schedule for completion of the Waste Solidification Building slipped 10 months, costing an extra $15 million, which the NNSA noted was a “continuing trend of unsatisfactory performance for this project.” The agency added: “These performance failures come at a time when NNSA and its corporate partners are facing substantial scrutiny related to major construction project performance and program execution performance. The lack of progress on the WSB project is especially troubling in light of the fact that senior NNSA leadership discussed with senior SRNS leadership its serious concerns about challenges to these projects. The management actions were not effective in addressing the concerns and the projects fell further behind throughout the performance period. The inability of SRNS to corporately solve these challenges is of continuing concern.”

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