The Department of Energy has told CH2M Hill Hanford Group and Fluor Hanford to prepare transition plans to turn work over to potential new contracting groups.

Both contractors are operating under extensions that expire Sept. 30 while DOE evaluates bids for three new contracts.

Work now done by Fluor would be split into a central Hanford cleanup contract and a support services contract. The third contract would cover operations of Hanford tank farms now being done by CH2M Hill.

DOE said in letters sent to CH2M Hill and Fluor that it expects to award the three new contracts by Sept. 30, the end of fiscal year 2008.

Hanford employees were told that for planning purposes CH2M Hill will be told to assume the transition also will be completed by Sept. 30 and that the Fluor transition will be completed before or during fiscal year 2009.

Fluor was told to develop 90-day transition plans in two versions -- one if the central Hanford contract is awarded first and the other if the support services contract is award first.

DOE has authorized $500,000 for Fluor to begin transition activities and up to $100,000 for the CH2M Hill transition.

"The desired outcome of transition is an effective transition of workscope that maintains mission performance and the required levels of safety, environmental protection and security," said letters sent to Fluor and CH2M Hill.

Among the information to be included in transition plans are labor agreements, turnover of facilities, surveys of existing conditions, information systems and environmental permits, Fluor was told.

DOE is believed to be considering competing proposals from Lockheed Martin and Computer Services Corp., which has teamed with Battelle, for the support services contract.

URS, formerly Washington Group, and CH2M Hill are believed to be competing against each other for both the central Hanford cleanup contract and the tank farm contract.