Kenneth Fletcher
WC Monitor
4/17/2015
Waste Isolation Pilot Plant M&O contractor Nuclear Waste Partnership earned only 7 percent of its available fee in Fiscal Year 2014 after incidents shut down the repository, for a total of $561,266 out of $8.2 million in maximum fee available, according to recently released fee information. WIPP was shut down for eight months of the fiscal year after a salt truck fire and radiation release in February 2014, and violations uncovered there have led to $18 million in penalties from the state regulator. “Many of the performance-based incentives could not be met while the facility was closed,” according to a DOE statement. “As a result of NWP’s poor response and culpability in the two events at WIPP, [DOE’s Carlsbad Field Office] applied reductions of fee but also provided opportunities for NWP to earn some fee back. The final result of these actions is that NWP earned only 7 percent of the total fee available for FY14.”
NWP’s fee was reduced by two conditional payment of fee clauses linked to the incidents that cut the fee the contractor originally earned, one reducing it 25 percent and the other by 50 percent. NWP did earn back some of the 25 percent reduction after “positive performance” on two of five recovery program activities, DOE said in the fee determination scorecard. NWP would have earned about $1.4 million in fee if the reductions had not been applied.
NWP ‘Disappointed’ In Fee Determination
In a statement, NWP said it was “disappointed” that it received only 7 percent of the available FY’14 fee. NWP stressed WIPP’s recovery progress since the incidents. “Nuclear Waste Partnership completed numerous corrective action measures in 2014 and actively worked to recover the WIPP underground in preparation for the resumption of operations,” the contractor said. “This has included extensive maintenance activities on underground equipment, upgrading the facilities emergency management systems and conducting decontamination activities in the underground. Although the company feels the award fee score does not fairly recognize the quality of the recovery effort, we also want to put the events of 2014 behind us and focus our entire attention on recovering the WIPP facility.”
‘Deficiencies’ Tied to WIPP Incidents…
The DOE scorecard listed numerous “significant deficiencies” for NWP, mainly uncovered after the February incidents. In addition to the suspension of waste operations, that includes “a significant delay” in nationwide transuranic waste disposal. It also notes that 368 transuranic waste containers disposed of at WIPP were “potentially noncompliant,” leading to the state’s penalty. There were also concerns with maintenance, safety culture, conduct of operations, its radiation protection program and its issues management system. There was also a “significant cost impact” related to the events. “As of August 31, 2014, NWP estimated approximately $23,534,200 in costs directly associated with the radiological release event,” the scorecard states.
… While NWP Also Cited for Achievements
However, NWP also earned “satisfactory” ratings in all four subjective award fee criteria and DOE noted “significant achievements,” mainly for accomplishments before the February events. That includes disposing of 2,115 cubic meters of transuranic waste prior to the events and being available 99 percent of the time from October 2013 through Feb. 4, 2014. Additionally, “Prior to the February 2014 events at WIPP, NWP provided excellent financial management and cost control of the WIPP and National TRU program. NWP worked with CBFO to manage costs during the partial government shutdown in October 2013,” the scorecard says. DOE also noted that “NWP’s management responsiveness since the events offset much of the negative consequences,” which includes a recovery plan for restoring limited operations in FY 2016 and full operations in FY 2018.
NWP currently is undertaking decontamination activities in the WIPP underground in preparation for restarting initial waste operations in 2016. “Nuclear Waste Partnership remains committed to working with the Department, our local stakeholders and regulators to ensure the nuclear safety systems at WIPP are fully restored so the facility can resume its important national mission of disposing of defense transuranic waste,” NWP said. “We are proud of our employees and their many accomplishments during the difficult and challenging recovery process.”
A DOE spokesperson said in a statement: “The Department is committed to completing recovery activities and restoring the Waste Isolation Pilot Plant facility to normal operations as quickly as possible while protecting the health and safety of our workers, the public and the environment. In determining the award fee earned, the Carlsbad Field Office attempted to conduct a fair evaluation that considered all performance aspects throughout the year.”
