In January 1997, Westinghouse Savannah River Company, the management and operating contractor at the Savannah River Site, submitted a privatization proposal requesting approval to form a "spin-off" company to perform safety management services. The new company, Westinghouse Safety Management Solutions, Incorporated (WSMS), would be a wholly owned subsidiary of Westinghouse and would be largely comprised of Westinghouse personnel already performing safety management services at the site. To justify the spin-off, the management and operating contractor prepared a make-or-buy analysis indicating that by using WSMS the Department would save at least $11.5 million over 5 years. The Department approved the proposal and allowed Westinghouse to enter into a sole-source, cost-reimbursable agreement with WSMS beginning in Fiscal Year 1998.
