Doe To Review Fluor Daniel Hanford Pact Pena Voices Concerns About Company’s Performance In Light Of $5 Billion Contract

The Department of Energy has decided to conduct its own review of a controversial $5 billion Fluor Daniel contract at the Hanford Nuclear Reservation, citing concerns about the company’s managerial performance.

The review was announced by Energy Secretary Frederico Pena, who visited the Washington state installation last month and asked Fluor to take a “look in the mirror” and report back to the department on how it thought it was performing.

Now, the secretary has appointed a three-member team to conduct an independent review.

“There are concerns,” Pena said in a telephone interview late Friday. “This is why we have taken this step. We expect it to be a comprehensive assessment.”

Pena declined to spell out his concerns.

But Sen. Patty Murray, D-Wash., in a July letter to Pena, said a department review needed to focus on safety issues, including those surrounding last May’s chemical tank explosion, as well as procurement issues, overhead costs, the promise to create new jobs in the Tri-Cities and Fluor’s ability to meet cleanup deadlines at Hanford.

Pena also declined to say exactly what the investigative team would look at because he didn’t want, in any way, to limit the scope of its review.

“I expect it to be a broad review of everything they (Flour) are obligated to do under the contract,” Pena said.

Both Fluor’s internal review and the department’s own investigation will be completed in late October. Pena said he will then compare the two. At stake could be how much Fluor is paid under its performance-based contract.

“Our final conclusion could have an impact on their fee,” Pena said.

As for his decision to supplement Fluor’s internal review, Pena simply said “it is good business practice and a wise course to take, frankly, for the contractor and for us, too.” Fluor won the Hanford management contract 13 months ago and has faced nagging questions about its performance so far.

In addition, the Senate Governmental Affairs Committee is investigating whether political influence, including a $100,000 campaign contribution to the Democrat National Committee just weeks before it was awarded, may have had anything to do with Fluor winning the contract.

Pena said the departmental team investigating Fluor’s performance will be headed by the deputy chief financial officer from DOE’s Idaho Falls office. The two other members of the team will be assistant managers from DOE’s Richland office who don’t currently have any involvement with the Fluor contract.

The team’s review will be further “verified” by the manager of DOE’s Idaho Falls office, John Wilcynsky, before being turned over to Hanford manager John Waggoner and himself, Pena said.

“I think this process gives us internal independence,” Pena said.

Pena also said as a result of his Hanford trip the department will take several steps:

Launch a wide-ranging review of the handling of the millions of gallons of highly radioactive waste stored in underground tanks.

Allow those exposed to chemicals in the May explosion to have medical tests wherever they want.

Work with a team of department employees, members of the Hanford Advisory Board and others to develop options for accelerating the cleanup of the Plutonium Finishing Plant where the explosion took place.

Address concerns from the public about the possible spread of radioactive contamination into the so-called vadose zone underneath the tanks.