DOE Approves Modified Contract and Baseline for Hanford Waste Treatment Plant
The contract modification implements DOE’s Direct Feed Low Activity
Waste (DFLAW) approach for the Hanford tank waste treatment mission. The
DFLAW approach involves the WTP Low Activity Waste (LAW) Facility,
Analytical Laboratory (LAB) and a set of 23 support facilities,
collectively known as Balance of Facilities (BOF). Together, these three
areas are commonly referred to as “LBL.” The contract modification
aligns both the contractor responsibility and the project risks through
the restructuring of incentives in order to deliver the best value for
the Federal government and the taxpayer.
“DOE is committed to addressing the environmental legacy of decades of
nuclear weapons production activities at the Hanford Site in a safe and
cost-effective manner. We are confident that the modified contract and
baseline represents the most effective and expeditious path towards
beginning tank waste treatment at Hanford as soon as practicable,” said
Kevin Smith, Manager of the DOE Office of River Protection, which
oversees the WTP Project.
The contract modification includes incentives for BNI to complete the
LBL sections of the WTP by specific dates and for the contractor to
share in cost savings for completing work early. It also includes
sections to benefit the American taxpayer by reducing the fee for work
that fails to meet the agreed upon schedule.
To date, BNI has made significant progress on the LBL sections of the
WTP, with the LAB and BOF near completion and some support systems
commencing activities for startup. In addition, nearly all major pieces
of equipment have been installed in the LAW Facility.
Along with the contract modification, DOE has revised the baseline for
the LBL sections of the WTP project. The cost increase for the approved
baseline change of the project is approximately $4.5 billion and
results from multiple factors, including changes in quality standards,
performance and construction challenges, and updated commissioning costs
based on improved understanding of current industry best practices. As a
result, the incremental total project cost for the entire WTP has
increased to $16.8 billion. This revised baseline has been thoroughly
reviewed by the Project Management Risk Committee and the revitalized
Energy Systems Acquisition Advisory Board, reflecting the Department's
recent project management improvements.
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