WASHINGTON, D.C., USA — The U.S. Department of Energy’s National Nuclear Security Administration (DOE/NNSA) awarded a contract to Erwin, Tennessee-based Nuclear Fuel Services (NFS) for the design and pilot demonstration of highly enriched uranium conversion and purification services.
Oak Ridge leaders have expressed disappointment over the contract, saying it will shift some production from the Y-12 nuclear weapons facility. The NNSA said no jobs will be impacted by this contract, but Oak Ridge leaders said the agency has not given them any further explanation to confirm that.
The city said an earlier press release Monday from the NNSA had caused confusion, making it seem the contract would be at Y-12 and not the Erwin facility. The NNSA told Oak Ridge leaders the confusion was "an error" and that work would not be taking place at Y-12.
“It is deeply concerning that the release issued by NNSA misrepresented the contract work as being at Y-12. We remain strongly against pushing this through just hours before a new Secretary and executive team were confirmed,” Oak Ridge Mayor Warren Gooch said. “Chemical processing of uranium has been one of the core capabilities of Y-12, and it is clear that this work could and should continue to be performed at Y-12 where the highly skilled work force and taxpayer-funded security measures are already in place.”
The NNSA said the $57.5 million Phase 1 contract to NFS aims to modernize capabilities and facilities at the Y-12, contract serves as a bridging strategy as Y-12 continues work on new, more modern facilities.
NNSA is modernizing facilities, equipment, and processes used at Y-12 to recycle and recover weapons-grade uranium, some of which are more than 70 years old and in need of replacement, while pursuing this bridging strategy with NFS, ensuring it will continue to meet the needs of the Department of Defense.
Pending the results of the contract with NFS, NNSA will determine if a follow-on, Phase 2 contract with NFS will be awarded.
If Phase 2 is pursued, NFS would provide uranium purification and conversion services to bridge the capability gap until Y-12 implements its new capabilities.
NNSA said it has maintained close communication with Congress and Tennessee Representative Chuck Fleischmann’s office in the development and execution to ensure that Y-12 will not see a reduction in workforce.