B&W loses Pantex and Y-12, but gains military nuclear work

28 February 2014

US nuclear contractor and vendor Babcock & Wilcox subsidiaries have lost management and operations contracts for two key US military sites, but other subsidiaries have won US naval reactors work.

The US Goverment Accountability Office has denied an appeal by the consortium Nuclear Production Partners, which includes Babcock & Wilcox subsidiary B&W Technical Services Pantex, not to transfer a management contract of US nuclear weapons facilites Pantex and Y-12 National Security Complex to rival group Consolidated Nuclear Security.

"While we are disappointed with the GAO decision, we will evaluate the decision and consider our options," said George Dudich, President, Babcock & Wilcox Technical Services Group, Inc. "The B&W-led teams currently in place at Y-12 and Pantex remain focused on operating both sites safely and securely."

NP2 has been fighting NNSA's decision since it first announced in January 2013 that it had decided to shift the contract to CNS, a consortium of Bechtel, Lockheed Martin, ATK Launch Systems and SOC, LLC.

"Our nuclear production capabilities are critical to our national security, and CNS represents the best value to the government as evidenced by its superior technical and management approach and its lower evaluated cost," said NNSA Acting Administrator Bruce Held in November 2013.

Babcock & Wilcox subsidiary B&W Nuclear Operations Group, Inc. has received a contract from the U.S. Naval Reactors Programme for the manufacture of nuclear components for US military programmes, including for US submarines and aircraft carriers. The deal includes an immediate order for work worth $508 million, with further awards over the next three years. Work under the contract will be performed at B&W NOG's facilities in Lynchburg, Va., Mount Vernon, Ind. and Barberton and Euclid, Ohio.

Babcock & Wilcox subsidiary Nuclear Fuel Services has won £302 million of business from the US Navy. The first contract is a one-year contract with a one-year option, which includes the manufacture and delivery of fuel and support activities for the U.S. Naval Nuclear Propulsion Program. NFS has been the sole manufacturer of nuclear fuel for the U.S. Navy's fleet of nuclear-powered aircraft carriers and submarines since 1964.

The second award is also a one-year contract with a one-year option, which provides for the development of material for future Naval Reactors programs. Work under the contracts will be performed at NFS facilities in Erwin, Tenn. This work began in January 2014 and is scheduled to continue through February 2016. NFS employs a full-time workforce of approximately 1,000 people, including long-term contractors.



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