In December 1997, the Oak Ridge Operations Office (Operations Office) awarded a $2.5 billion
performance-based management and integration contract to Bechtel Jacobs Company LLC (Bechtel
Jacobs) for environmental remediation activities in Oak Ridge, Tennessee; Paducah, Kentucky; and
Portsmouth, Ohio. The contractor was also responsible for uranium enrichment functions at Paducah
and Portsmouth. Under this arrangement, the contractor is to receive incentive fees for
accomplishing performance objectives negotiated before the start of the performance period, in this
case prior to the beginning of each fiscal year. The performance objectives describe what the
contractor is to accomplish and when the task is to be completed.
