Y-12 National Security Complex in Oak Ridge gets a new management company

The Y-12 National Security Complex and its 8,700 employees and contractors will be under new management starting next month.

The Department of Energy awarded Nuclear Production One LLC an estimated $ 2.8 billion contract to manage and operate the Oak Ridge facility and Pantex facility in Amarillo, Texas.

According to the Department of Energy, many Y-12 employees have the option of keeping their jobs with the same salary.

Nuclear Production One’s contract begins in December. Consolidated Nuclear Security will continue to manage Y-12, a production and storage facility for nuclear weapons materials, until the contract expires at the end of March.

The four-month transition period is intended to minimize the impact on workers, said the Department of Energy of the National Nuclear Security Administration, which had awarded the contract, in a press release.

The Nuclear Production One contract has a minimum term of five years with five options to extend by one year.

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Employee portal at the Y-12 National Security Complex in Oak Ridge on February 1, 2018.

The University of Tennessee System and the Texas A&M University System have also tendered to manage and operate the facilities together.

The new contract requires Nuclear Production One to offer all current employees, in addition to a few top managers, positions “that it deems necessary to meet the contractual requirements,” says a press release from the DOE.

According to a press release, Nuclear Production One must provide the same salary to employees who remain in their current position and support existing retirement plans and allow employees to remain in those plans.

Nuclear Production One is an LLC founded in 2020 by Texas-based nuclear remediation company Fluor Federal Services Inc. and construction management company AECOM Energy & Construction, an Amentum company based in California.

The National Nuclear Security Administration announced in June 2020 that it would not renew the Consolidated Nuclear Security contract that had existed since 2014.

The Department of Energy found that it was looking for a new manager to improve the corporate culture.

Y-12 was built as part of the Manhattan Project and the facility maintains the US nuclear inventory, secures nuclear materials and supplies the US Navy with enriched uranium.

Business growth and development editor, Brenna McDermott, can be reached at [email protected] Follow her work on Twitter @_BrennaMcD. Support our local news efforts by becoming a Knox News subscriber.

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