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SRS contract deemed appropriate

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The U.S. Energy Department's decision to award a $4 billion Savannah River Site management contract to a new firm was justified, even though the existing operator's bid was $48 million less, according to a newly released evaluation by the U.S. Government Accountability Office.

Savannah River Nuclear Solutions was awarded the five-year contract in January over a competing proposal from Savannah River Alliance, composed of incumbents of Washington Savannah River Co., which has managed the site since 1989.

Savannah River Alliance appealed the award to its competitor on grounds that its rival's price was higher and that conflicts of interest existed within its management.

The GAO ruled April 25 that the Energy Department was justified in its decision -- and earlier this month released its 25-page ruling after removing names of specific personnel discussed during the appeal.

Auditors found the two proposals were "substantially equivalent" under all categories except management personnel, which accounted for 25 percent of the selection criteria.

In that section, the GAO wrote, "while the two offerors proposed chief executives and laboratory directors who had substantially equivalent experience, the rest of SRNS's key personnel had more extensive experience."

The SRNS team also performed well during oral presentations, the report said, while "SRA did not function as an integrated team and overall was less interactive than the SRNS team."

Of nine selection criteria in addition to contract price, the rivals received identical ratings in eight of them.

In the deciding category, SRNS received an "excellent" in "key personnel," while SRA received a rating of "good."

SRA's "evaluated price" was more than $424 million, while SRNS's evaluated price was just over $473 million, the report said.

The $48 million difference, which would be spread over 10 years with the assumption that the five-year contract would be renewed for a second five years, adds up to about $4.8 million a year more, the GAO wrote.

The higher cost was justified because of "advantages in leadership, innovation, efficiency and productivity improvements," the GAO concluded in denying SRA's appeal.

"Agency's selection of higher-priced, higher-rated proposal for award is reasonable, where the key discriminator between proposals was under the key personnel factor, which was one of the most heavily weighted factors in the evaluation," the GAO wrote.

Savannah River Nuclear Solutions, which will assume its management role Aug. 1, will be responsible for about 7,000 employees and has pledged to make an orderly transition.

Reach Rob Pavey at 868-1222, ext. 119 or rob.pavey@augustachronicle.com.

THE RIVALS


- Savannah River Nuclear Solutions, whose bid was ultimately chosen, is a new partnership that includes Fluor Federal Services, Newport News Shipbuilding and Drydock Co. (Northrop Grumman), Honeywell International, Lockheed Martin Services and Nuclear Fuel Services Inc.


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TrukinRanger
1748
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TrukinRanger 05/27/08 - 04:32 am
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So... I guess this means
Unpublished

So... I guess this means they'll have $48 Million in job cuts. That's just to get to the current operating cost.... which was already cutting jobs. How nice... glad I don't work out there. Too bad for my family members that do!!!!!!!!!!!

SCEagle Eye
958
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SCEagle Eye 05/27/08 - 06:50 am
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Great, SRS will now be

Great, SRS will now be managed by a rogue's gallery of defense contractors used to making high profits at tax-payer expense. We can thus expect constant pressure on the workforce to cut costs and for $RN$ to pursue new projects which will stick it to the tax payer while providing questionable benefit to society. Focus should stay on clean-up and a step-by-step downsizing out of the bomb business and away from big-government, wasteful projects.

Riverman1
93637
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Riverman1 05/27/08 - 07:07 am
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How do you simply change key

How do you simply change key personnel as if they were all assembly line workers? It makes no sense to me either.

i.b.e.w..electric
0
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i.b.e.w..electric 05/27/08 - 07:49 am
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dont know about you folks

dont know about you folks ,but it smells like there are some shananagans going on to me.

hobo
0
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hobo 05/27/08 - 08:08 am
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They do nothng at the savanah

They do nothng at the savanah river site but waste taxpayers money. Ask anybody that works there and they will tell you that they have nothing to do at work. The whole situation is a joke. It needs to be closed down permanently just like the Ecology Lab.

taha
0
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taha 05/27/08 - 09:36 am
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How about your an idiot

How about your an idiot hobo!!! That would be a terrible blow to the economy of this area!! We would be a ghost town!

WHATDIDIDO
0
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WHATDIDIDO 05/27/08 - 01:11 pm
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Wow where are the regular

Wow where are the regular posters? They raised hell over the county not giving Thompson the contract as a low bidder> I thought the philosophy of this group was, that the lowest bidder always got the contract? LOL

elpi
0
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elpi 05/27/08 - 03:35 pm
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Maybe the "lowest bidder"

Maybe the "lowest bidder" couldn't cut the mustard! If "everybody knows they have nothing to do at work" perhaps you all should be happy about the change instead of wondering why its happening! ...and while you're at it, wonder what they weren't working on that whole time! Yikes!

apex24
0
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apex24 05/27/08 - 08:28 pm
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Hypo, your an absolute

Hypo, your an absolute unaudulterated idiot!!!! Your mad because your black lady was caught giving contracts to your black companies.

NicoleKelly
7
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NicoleKelly 05/28/08 - 12:37 am
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Why would you call my mother

Why would you call my mother a Black Lady? She's a wonderful woman!!!!!!!! Get it right BUCK-O!!!!!!!! @apex. You sound like the only red neck idiot in here!!!!!!!!!

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