Fluor Corp. on Friday said the Department of Energy has confirmed its January selection of a Fluor-led team as the winning bidder for a $4 billion management and operating contract at the Savannah River site near Aiken, S.C.
The five-year contract includes five, one-year renewal options, bringing the potential total contract value to $8 billion.
Irving-based Fluor (NYSE: FLR), an engineering and construction company, said it expects to start booking earnings from the contract into backlog in the third quarter of 2008.
The team, Savannah River Nuclear Solutions LLC, was formed by Fluor along with Northrop Grumman Corp. (NYSE: NOC), Honeywell International Inc. (NYSE: HON) and Lockheed Martin Corp. (NYSE: LMT). Key personnel from each company comprise the senior management, led by President and Chief Executive Chuck Munns.
Fluor said Aiken, S.C.-based Savannah River Nuclear Solutions had been waiting to begin work under the contract until the U.S. Government Accountability Office resolved protests by a competitor.
Following a 90-day transition period that begins immediately, Savannah River Nuclear Solutions will be responsible for management and operating the Energy Department's Savannah River site with a workforce of 6,200 employees.
"We are glad to have these protests resolved and to be able to move forward," said John Hopkins, group executive of Fluor, in a statement. "Throughout this process we have remained confident in our team and in our proposal."
The Savannah River site focuses on supporting and maintaining the nuclear-weapons stockpile as well as processing and storing nuclear materials in support of U.S. nuclear nonproliferation efforts. Work performed at the site includes environmental management and the cleanup of legacy materials, facilities, and wastes left over from the Cold War. The Savannah River National Laboratory, a federally funded research and development center, is also located at the site.
Web sites: www.savannahrivernuclearsolutions.com, www.fluor.com
