Tuesday, March 28, 2006
Feds dump Bechtel for Nevada Test Site management contract
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.
Perhaps that was a reason for the selection. Or perhaps it was because of the perceived shortcomings of the incumbent, Bechtel NV.
Pit production, here we come.
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.
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.
I thought all benefit packages are "site specific" and do not have to remain the same from contractor to contractor.