Kenneth Fletcher
WC Monitor
1/10/2014
Savannah River Nuclear Solutions, the managing contractor for the Savannah River Site, earned 84 percent of its total available award fee in Fiscal Year 2013, earning about $47 million out of $56 million, according to information the Department of Energy released this week. The contractor did best in DOE Office of Environmental Management programs, earning about $30.7 million, or 96 percent of the available fee. SRNS earned less fee in its National Nuclear Security Administration projects, 68 percent of available fee, or about $16.3 million. “SRNS continues to deliver strong operating performance in environmental management and cleanup while maintaining the highest standards of safety, safeguards and security,” states a Dec. 18 DOE letter.
The contractor’s latest award fee was on par with what it earned in FY ‘12, when it earned 85 percent of its available fee (WC Monitor, Vol. 24 No. 2). In the most recent evaluation, DOE praised SRNS for its management of a tough budget situation in FY 2013. The contractor put 2,500 employees on part-time workweeks in April and May due largely to impacts of a continuing resolution and sequestration (WC Monitor, Vol. 24 No. 14). “SRNS overcame significant challenges in FY 2013 turning national and global events into opportunities,” DOE wrote. “SRNS was responsive in budget management, accommodating major scope changes and addressing multiple funding scenarios, including sequestration, government funding through continuing resolution and program challenges.”
EVMS Suspended, Conduct of Ops Issues Found
However, the Department found several “significant deficiencies” in SRNS’ FY ‘13 performance. For example, DOE suspended SRNS’ Earned Value Management System in FY ‘13 because it “did not demonstrate adequate compliance with emerging project management standards.” DOE also found “an increasing trend of adverse events related to Conduct of Operations and Integrated Safety Management.” The letter adds, “These events were primarily noted in H-Area, but also present in other Nuclear Material Operations (NMO) facilities. This adverse trend and the Department’s concerns and expectations were documented in a letter to SRNS management. Further weakness was exposed during the conduct of a DOE Readiness Assessment of HB-Line in August. While worker safety was never compromised, the assessments identified a trend that if unchecked could have compromised safety in the NMO facilities in the future.”
SRNS: Pleased With Recognition
DOE did note in its letter several achievements in SRNS’ cleanup work, including “ongoing missions of H Canyon, completion of legacy transuranic waste remediation, continued exceptional support meeting the nation’s defense program needs and safe, secure and handling of nuclear materials from around the world.”Additionally, “SRNS increased emphasis on personal ownership of working safely, achieving 20 million safe hours.” DOE also said that SRNS realized $36.8 million in cost savings in FY ‘13 through its Continuous Improvement program, and that cost savings through the life of the contract total $161.8 million.
Concerning DOE’s evaluation, SRNS spokeswoman Barbara Smoak said in a written response, “We are pleased with DOE’s recognition of our employees’ excellence in the areas of safety and security, our strong operational performance in environmental management and clean up, our tritium-related missions, and our safe and secure handling of nuclear materials. We are also pleased with the recognition of the world leadership of Savannah River National Laboratory in technological advances in environmental stewardship, clean energy and national security.” She added, “We will continue to look for ways to improve our performance in the coming year while providing value to both our DOE customer and to the nation.”
NNSA Performance ‘Mixed’
SRNS earned lower marks, however, in the several NNSA projects it managed, which include the Tritium Facilities, the Waste Solidification Building and a MOX feedstock mission in H-Canyon. DOE said SRNS’ performance was “mixed” for NNSA in FY ‘13. “The Defense Program work in all cases met, and in some significantly exceeded, expectations,” states the letter. “The operation and maintenance of mission critical facilities exceeded expectations even though SRNS was working in the context of constrained funding and significant budget uncertainty throughout the year. Of special note was the nearly flaw-less implementation of the Automated Reservoir Management System II and the simultaneous process outage.”
But the Waste Solidification Building has been a longstanding issue for SRNS—In 2012 an NNSA contracting officer criticized management of the project and threatened to withhold fee, and last year a WSB subcontractor filed suit against SRNS for breach of contract and fraud. “The Waste Solidification Building project, on the other hand, fell short of expectations this year as the project was over budget, behind schedule and lost ground after the December 2012 rebaselining,” states the letter. “Although some improvements were noted, the schedule continued to slip, resulting in unsatisfactory performance on this significant project. Additionally, the Alternate Feed Stock II project in H-Canyon missed the mark when efforts failed to result in any oxide production.”
