Tuesday, March 28, 2006

Feds dump Bechtel for Nevada Test Site management contract

Today: March 28, 2006 at 16:27:37 PST

Feds dump Bechtel for Nevada Test Site management contract

ASSOCIATED PRESS

WASHINGTON (AP) - The Energy Department on Tuesday picked a corporate group led by Northrop Grumman to manage the Nevada Test Site, rejecting a bid from Bechtel Corp., which has held the contract for 10 years.

A spokesman for DOE's National Nuclear Security Administration declined to say why National Security Technologies, LLC, was chosen over Bechtel for the five-year contract worth $500 million per year. The site is a 1,375-square-mile area where nuclear weapons used to be tested and is now used for testing conventional weapons, emergency response training and other purposes.

[...]

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Comments:
I overheard at a high level NNSA meeting today that this decision proves that the incumbent doesn't always win.

Perhaps that was a reason for the selection. Or perhaps it was because of the perceived shortcomings of the incumbent, Bechtel NV.
 
Welcome to the DOE dumping ground. Bechtel's not good enough to run NTS, but they are good enough to run LANL.

Pit production, here we come.
 
Gee whillikers. Bechtel lost a $500/year contract to win a $79/per year one? What's missing from this picture?

It couldn't possibly have anything to do with Bechtel agreeing to help us implement our plans to turn LANL into RFP-South, would it? Let's see, by the time we finish pumping about $1.5 billion into new LANL pit production facilities, and B&B (Bechtel & BWXT) finish bulking up to go into a to a 4-shift per day, 650 pit per year production program, how much money do you suppose there will be in it for the contractor?

At least $421M per year.
 
You know, it is hard to argue with the Doe Guy's math. I think it is "spot on" as us Brits would say.

Some may quibble with his pit production target, but it sounds within factor of 2 or 3 for me, which is within 3 sigma for us propeller types.

Arcs_n_Sparks
 
So is the National Security Technologies LLC's benefits substantially equivalent in the aggregate to Bechtel's?
 
So is the National Security Technologies LLC's benefits substantially equivalent in the aggregate to Bechtel's?

I thought all benefit packages are "site specific" and do not have to remain the same from contractor to contractor.
 
Anyone from LANL's past or present going to be in an upper mgt position with the new contractor there?
 
Where is the NST-LLC incorporated...the State of Delaware? ...as a favored small business??
 
Crikey!

They're on to us!
 
Not to worry, TestSiteVisit. The new managers will take care of that in short order.
 
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