OAK RIDGE, Tenn. — The U.S. Department of Energy announced Monday it has selected a new contractor to take over management and operations at Y-12 National Security Complex in Oak Ridge.
The announcement came more than a year after the department's National Nuclear Security Administration decided not to renew its contract with Consolidated Nuclear Security, saying it was dissatisfied with CNS due to longstanding security and performance issues.
The new contractor, Nuclear Production One, LLC, will begin taking over management and operation of Y-12 and the Pantex Plant in Amarillo, Texas starting in December 2021. The NNSA said the estimated $2.8 billion annual contract includes a four-month transition period. It has a five-year base period with five, one-year options -- for a total of 10 years if all options are used.
“For over 40 years, the Pantex Plant in Amarillo, Texas has been the Nation’s primary nuclear weapon assembly, disassembly, and life-extension center. The Y-12 National Security Complex in Oak Ridge, Tennessee has been strengthening our national security and reducing the global threat from weapons of mass destruction since 1943,” said Jill Hruby, Administrator of the NNSA. “I look forward to NPOne helping us accomplish our mission.”
The NNSA said CNS remains under a contract that will expire on March 31, 2022 -- which will allow the two contractors time to transition management over and provide stability for those currently employed under the CNS contract.
Aside from top-level managers, the NNSA said the new contract will require NPOne to offer positions to all workers at Y-12 and Pantex it "deems necessary for completing the requirements of the contract," including retaining the same pay levels for employees who remain in their current positions. The NNSA said NPOne will also be required to sponsor existing retirement benefit plans and must allow incumbent employees remain on those plans.