Complex DOE Contract for Pantex; Y-12 Completed

DOE News:

The National Nuclear Security Administration Production Office and Consolidated Nuclear Security have completed one of the largest and most complex contract transitions in the history of the U.S. Department of Energy (DOE).

Consolidated Nuclear Security (CNS) assumed responsibility for the management and operation of the Pantex Plant in Amarillo, Texas and the Y-12 National Security Complex in Oak Ridge, Tenn., July 1.

CNS replaces B&W Y-12, which had operated Y-12 since 2000, and B&W Pantex, which also had operated Pantex since 2000. The contract includes a total annual operating budget of $1.5 billion and employment of about 8,000 in Tennessee and Texas.

“The new contract will allow NNSA to continue the safe and secure maintenance of the nuclear weapons stockpile; provide enriched uranium for naval, research, and isotope production reactors; and, support nonproliferation activities to reduce the global nuclear threat,” NNSA Production Office Manager Steve Erhart said. “The conclusion of this transition will bring much needed stability to the thousands of men and women who play an important role in our enduring national security mission. All contract transitions create some change and uncertainty. But, throughout this process, the highly skilled professionals at Pantex and Y-12 have remained focused and dedicated to the safe and secure completion of the mission.”

The consolidated contract will yield significant savings to the U.S. taxpayer over the life of the contract as NNSA and CNS develop more efficient ways of doing business. A portion of the generated savings are to be reinvested into aging infrastructure at both sites to improve the working conditions for the Pantex and Y12 work force.

“Our people are NNSA’s greatest asset. We intend on improving the quality of life of the workforce by investing in upgrades that better equip them to do this important work well into the future,” Erhart said.

Pantex is responsible for nuclear weapons surveillance and life extension programs; nuclear weapons dismantlement; the development, testing and fabrication of high explosive components; and the interim storage and surveillance of plutonium pits. Y-12 is responsible for uranium storage, processing and manufacturing operation, the production of uranium feedstock for the U.S. nuclear navy, and supports international nuclear nonproliferation programs.

Transition activities over the four-month period have included extensive facility walk-downs, review of procedures, staffing and benefit plan development, and other transition plans. NNSA Production Office (NPO) has confirmed the readiness of the new contractor to assume responsibility of management at both facilities.

Oversight of the new contract will be the responsibility of the NPO. In June 2012, the former Pantex Site Office and Y-12 Site Office were merged into NPO in anticipation of the award of a single Management and Operating contract for the operation of both Pantex and Y-12.

“I am very pleased with the efforts of all three companies in supporting the extensive transition workload,” Erhart said. “Special thanks go to B&W for supporting the transition while maintaining day-to-day production operations and keeping the workforce focused on getting the job done in a safe and secure manner. As this transition is now complete, I want to thank B&W for their many achievements at both sites over the past 14 years, all in support of our essential national security mission.”

For more information on the transition, visit

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