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Wednesday March 26th 2008

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2 teams will bid for tank farms work

This story was published Wednesday November 28th 2001

By John Stang, Herald staff writer

CH2M Hill Hanford Group has created a bidding pool of two corporate teams to compete for up to $107 million worth of Hanford tank farms work over the next five years.

The two teams are:

-- Lead contractor Fluor Federal Services with subcontractors Science Applications International Corp. and G&C Equipment Corp.

-- Lead contractor Washington Group International with subcontractors Federal Engineers & Constructors, George A. Grant Inc., SMK Construction Companies, EESCO Electric, Cheyenne Construction and Techno General Services.

The arrangement is part of the evolution of Hanford's "enterprise companies."

When a team led by Fluor Hanford took over Hanford in 1996, the team created six enterprise companies and gave them exclusive access to many Hanford subcontracts.

Over the past five years, Fluor Hanford gradually weaned the enterprise companies from the exclusivity and they now bid against other companies for the work.

Meanwhile, CH2M Hill bought Lockheed Martin Hanford Corp., which was part of Fluor Hanford's core seven-company team. Then the renamed CH2M Hill Hanford Group split from Fluor Hanford's team and became a prime contractor. And the new CH2M Hill Hanford Group kept Lockheed's exclusivity agreement with one enterprise company, Fluor Federal Services.

Fluor Federal's exclusivity arrangement expired Sept. 30, said Betty Euteneier, CH2M Hill Hanford Group director of contracts.

Consequently, CH2M Hill wanted to create a pool of qualified contractors to bid on construction work at Hanford's tank farms. Fourteen companies voiced interest, and four applied to be in the bidding pool, which was narrowed to the Washington Group and Fluor Federal teams.

They will tackle projects at the tank farms, mostly in the 200 East Area, that include building pipelines, junction pits, utility trenches and other structures to maintain the tank farms and eventually ship wastes to the planned glassification complex adjacent to the 200 East Area.

With two qualified teams ready to compete, CH2M Hill hopes to cut costs and increase productivity, Euteneier said.

Washington Group and Fluor Federal will be in the pool for two years, starting in mid-January. And each will be eligible to get three one-year extensions on their memberships in the pool.


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