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Fluor Awarded $1.8B Nuclear Contract

Wednesday, March 25, 2020

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Earlier this month, the United States Department of Defense announced the award of a $1.8 billion contract to Fluor Marine Propulsion LLC (Arlington, Virginia)—a wholly-owned subsidiary of Fluor—for a cost-plus-fixed fee modification for naval nuclear propulsion at the Naval Nuclear Laboratory.

The contract modifies a previously Fluor-awarded contract.

About the Project

Originally issued in July 2018, Fluor was jointly awarded contracts totaling $1.2 billion from the U.S. Navy’s Naval Sea Systems Command and the U.S. Department of Energy’s National Nuclear Security Administration for naval nuclear propulsion work at the Naval Nuclear Laboratory.

U.S. Navy/PH3 Alta I. Cutler, public domain, via Wikimedia Commons

Earlier this month, the United States Department of Defense announced the award of a $1.8 billion contract to Fluor Marine Propulsion LLC (Arlington, Virginia)—a wholly-owned subsidiary of Fluor—for a cost-plus-fixed fee modification for naval nuclear propulsion at the Naval Nuclear Laboratory.

The project was competitively procured on the Federal Business Opportunities website and the U.S. Department of Energy’s FedConnect. Over the course of accepting bids, the contract only received two offers.

In addition to the propulsion work, the scope of the contracts also included management and operation of the Naval Nuclear Laboratory with four primary facilities in New York, Pennsylvania and Idaho. These operations took effect on Oct. 1, 2018 and have a 10-year period of performance including all option years.

According to reports, should all options be exercised, the contracts totaled more than $13 billion.

“We are very pleased that the U.S. Government has placed its confidence in Fluor to ensure the continued preeminence of the nuclear Navy’s vital missions,” said Tom D’Agostino, President of Fluor’s Government Group, at the time.

“Fluor is committed to the expeditious and efficient transition of these contracts without disruption to the employees and their current operations. We look forward to ensuring that the Naval Nuclear Laboratory continues to deliver excellence to the men and women of the Navy who support our national security.”

What’s Happening Now

For the contract, the DoD reports that Fluor will perform 52% of the work in Schenectady, New York, 31% in Pittsburgh, 11% in Idaho Falls, Idaho, and 6% in Charleston, South Carolina.

In addition to the contract award, the Navy will also be funding the project in the amount of $290.8 million.

Work for the project will involve various nuclear propulsion technology operations which include research, design, construction, testing, operation, maintenance and disposition to support aircraft carrier fleet operations.

The Naval Sea Systems Command, Washington, D.C., is the contracting activity.

   

Tagged categories: Contracts; Government; Government contracts; Marine; NA; North America; Ongoing projects; Program/Project Management; Project Management; U.S. Navy; Upcoming projects

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