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Department of Energy Announces Intent to Extend Hanford Site Contract

April 25, 2012 - 12:00pm


RICHLAND, Wash. – The Department of Energy (DOE) plans to extend CH2M HILL Plateau Remediation Company’s contract for environmental cleanup at the Hanford Site by another five years.

In 2008, following a competitive bid, DOE awarded CH2M HILL a cost-plus, award-fee contract valued at approximately $4.5 billion over ten years, including a five-year base period with the option to extend the contract for another five years. DOE evaluated whether or not extending the contract was in the best interest of the government.

“We determined CH2M HILL remains the best value to the government on the basis of price and other factors,” said Matt McCormick, Manager, DOE Richland Operations Office. “Extending the contract ensures continuity in cleanup as we finish major projects over the next five years.”

CH2M HILL Plateau Remediation Company employs approximately 1,800 and is responsible primarily for demolishing former plutonium facilities, cleaning up contaminated soil, managing solid radioactive waste, and monitoring and cleaning up contaminated groundwater at the 586-square-mile site in southeast Washington State.

The base period, or first five years, of CH2M HILL’s contract is currently valued at about $3.7 billion, including $1.3 billion in American Recovery and Reinvestment Act funding that DOE provided since 2009. The value of the five-year contract extension is approximately $2.2 billion. According to a clause in the contract, DOE must wait until at least April 2013 to formally extend the contract but is announcing its intent to do so today.

CH2M HILL Plateau Remediation Company is a limited liability company formed by CH2M HILL Constructors, Inc. The team also includes AREVA Federal Services, LLC; East Tennessee Materials & Energy Corporation, Inc.; and Fluor Federal Services, Inc. as major subcontractors as well as multiple preselected subcontract companies.