Agency Rejects Hanford Contracts

Proposals by companies that manage the Hanford Nuclear Reservation to extend their contracts have been rejected, and the Department of Energy says it will invite other firms to bid.

The federal agency turned down a proposal to keep ICF Kaiser Hanford Co. as the prime contractor for management and operations, and another proposal to expand the environmental restoration role Bechtel National Inc. plays.

The management and operations contract is expected to be a five-year pact worth about $5 billion.

Officials are hoping rebidding the contracts will save money.

“This competition will show us we can get Hanford cleanup done faster and cheaper,” John Wagoner, Hanford manager for the Department of Energy, said Friday.

Any bids must include a strong Tri-City economic development package, Wagoner said.

The rejected bid from the partnership of Westinghouse Hanford, Kaiser and Boeing Computer Services Richland would have pumped about $5 million into the Tri-City economy.

The partnership holds the prime contract through 1997, with Westinghouse in the lead role. Their proposal would have extended the deal through 1999.

Those companies will rebid the contract, most likely with new partners, said Kaiser president Bob Tiller.

Bechtel holds the environmental restoration contract and Westinghouse has the environmental management pact.