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SRS contractor earns praise, performance fee

Thursday, Jan. 10, 2013 9:44 AM
Last updated 3:17 PM
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Savannah River Nuclear Solu­tions earned most of its fiscal 2012 performance fees, according to the U.S. Department of Energy.

The management contractor for Savannah River Site, which employs more than 4,500 workers, was eligible for up to $48,950,000 in “performance-based incentives,” and was awarded $41,492,503 from the Department of Energy.

“In 2012, SRNS increased its emphasis on personal ownership of working safely, achieving 10 million safe hours without an injury resulting in lost time,” DOE-Savannah River manager David Moody, said in a letter to SRNS president and CEO Dwayne Wilson.

“As a result of your outstanding performance, the department extended your contract for an additional 38 months,” Moody wrote. “I can confidently say that Savannah River Site continues to operate from a position of balance and strength.”

Moody also noted some criticisms that resulted in the award of less than the full amount.

The company’s implementation of software to enhance procurement data collection “was not well managed,” the letter said, and resulted in late payments to small business vendors, untimely purchase of critical spare parts and difficulty in meeting financial reporting requirements.

There were also missed deadlines associated with the Waste Solidification Building project that resulted in cost over-runs.

Other issues included schedule delays and cost overruns in activities leading to preparation of feed to support the mixed oxide fuel project.

Overall, however, the site’s objectives were well-met. Highlighted accomplishments included:

  • Completing final shipment of low enriched uranium to the Tennessee Valley Authority, exceeding the contract to ship 301 metric tons of LEU for use in TVA’s nuclear power reactors. In 335 safe shipments, enough LEU has been delivered to power every home in the U.S. for 52 days.
  • Nuclear Materials Program Presentation Area Vault was made operational several months ahead of schedule and $15 million under the baseline estimate of $32 million, allowing for further storage expansion.
  • Successfully managed construction of a Mini-Thermal Cycling Absorption Process unit, which promises significantly higher capacity from a reduced footprint while consuming 60 percent less energy.
  • Took part in a DOE-wide response to the Fukushima, Japan, nuclear disaster. SRNS supplied a radioactive liquid transport assembly and five large steel storage tanks. SRNS Environmental Bioassay Laboratory also assisted by analyzing soil and air filter samples for radioactive contaminants and by providing expedited analytical support for iodine analysis on milk and vegetation samples.
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ColCo
799
Points
ColCo 01/12/13 - 12:00 am
2
0
"Not well managed" doesn't cover it

Ask any of the procurement engineers at SRNS what happened when management launched the People Soft procurement system on October 1, 2011. It was an unmitigated disaster. The new system literally didn't work at all for months and they continue to struggle with the system to this day. SRNS should be forced to share their bonus with the dozens of small businesses they have financially devastated or bankrupted over the last 16 months.

SCEagle Eye
917
Points
SCEagle Eye 01/11/13 - 11:48 am
1
0
where does $ go?

Do any of the on-the-ground workers get a cut of this award fee? Or, does SRNS management keep it and just ship it off to their off-shore accounts?

YeCats
10898
Points
YeCats 01/11/13 - 06:14 pm
0
0
The

company.

bdouglas
5134
Points
bdouglas 01/12/13 - 12:20 am
0
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@ColCo Nailed that one. That

@ColCo Nailed that one. That system is an absolute joke. Or at least their implementation of it. Didn't help that right after launch they laid off half of the people who were there to handle it. Was nothing but a pain when it did work, but when it didn't it was mind-numbingly bad.

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