A new contracting team headed by URS Corp.'s Washington Division and

EnergySolutions was awarded a $7.1 billion contract Thursday to operate

Hanford's tank farms.

Washington River Protection Solutions will begin the transition to take over

operations July 1 and take charge Oct. 1, according to the Department of

Energy.

The team includes Areva, which has a nuclear fuel fabrication plant in

Richland, as a major subcontractor. The five-year contract has an option to

renew for five years to earn the full contract amount.

The team will replace CH2M Hill Hanford Group, which also bid on the

contract.

"URS and all of our team partners have a long history of supporting the DOE

in environmental management and nuclear operations, including many

successful projects both past and present at the Hanford site," said Tom

Zarges, president of URS' Washington Division, in a prepared statement.

"We look forward to validating the trust placed in us by the DOE through

this selection by delivering safe, quality, results-oriented performance,"

he said.

Bill Johnson has been named president and project manager of Washington

River Protection Solutions. His previous experience for URS, formerly

Washington Group International, includes serving as executive vice president

and chief operating officer for contracts at DOE's Idaho Cleanup Project and

the Savannah River site in South Carolina.

"We're extremely proud to join the great team of employees already working

on the Hanford tank farm project," he said in a statement. "We are committed

to creating a project team that focuses on safety, supports and involves the

full abilities of the work force and provides exceptional performance."

Senior personnel from all three companies will be on the leadership team.

However, Washington River Protection Solutions does not plan to announce its

full leadership team until the appeal and protest period for the contract

award ends, said Penny Phelps, spokeswoman for the new contractor.

DOE also said it was limited in what it could say about the contract until

any appeals are resolved.

"The contractor was selected because we believe it will provide the best

value to the government," said Joann Wardrip, a DOE spokeswoman in

Washington, D.C.

Both bidders had many strengths, but the partners for the winning bid have

global access to personnel and technology, Phelps said.

John Fulton, president of CH2M Hill Hanford Group, sent a message to

employees Thursday saying he was disappointed by the decision.

"CH2M Hill worked very hard to develop a superior proposal," he said.

He commended employees for improving safety at the tank farms and progress

in emptying Hanford's 149 leak-prone tanks of high-level radioactive waste

from the nation's nuclear weapons program.

"This includes the first-ever retrieval of a tank at the Hanford site, and

... a total of seven difficult tank retrievals," he said.

CH2M Hill had no details by Thursday afternoon to explain DOE's decision, he

said.

Under terms of the bid request, Hanford workers who transfer to the new

contractor will continue to receive the traditional Hanford pension.

However, new employees would receive what DOE calls "market-based" pension

and health insurance plans.

URS is well known at Hanford as a partner in Washington Closure Hanford,

which is cleaning up Hanford along the Columbia River and as principal

subcontractor at the Hanford vitrification plant. It also operates the

Umatilla Chemical Depot incinerator.

EnergySolutions, which includes the former Duratek, is a principal

subcontractor to Fluor Hanford.

"We look forward to working with the department and the state of Washington

to safely and efficiently manage the liquid waste at the Hanford site," said

Steve Creamer, chairman of EnergySolutions, in a statement.

URS owns 45 percent, EnergySolutions 40 percent and Areva 15 percent of

their venture.

"The EnergySolutions name may be somewhat new in the Tri-Cities, but our

experience goes many years, and we will be very active in the community,"

said John Ward, spokesman for EnergySolutions.

Phelps said URS is committed to leadership "that is very active and visible

in the community" and to supporting small businesses.

"We're looking for these new contractors to be good corporate citizens,"

said Gary Petersen, Tri-City Development Council vice president of Hanford

programs. TRIDEC pushed successfully to get language added to the bid

proposal requiring contractors to be involved in Tri-City projects.

In addition to retrieving waste from Hanford's oldest tanks to store in 28

newer tanks, the new contract also calls for closing the emptied tanks and

preparing to treat the waste at Hanford's vitrification plant. It requires

construction of a system to deliver waste to the vit plant and possible

construction and operation of supplemental treatment, such as bulk

vitrification.

"Washington state Department of Ecology appreciated working with CH2M Hill,

their professionalism and accomplishments in tank retrieval," said Jane

Hedges, manager of the state's nuclear waste program, in a statement.

The state is looking forward to a smooth transition to the new team, she

said. "We need to ensure we remain dedicated to Hanford cleanup and remain

focused on tank waste retrievals."

TRIDEC and Rep. Doc Hastings, R-Wash., said they're looking forward to the

award of two other prime DOE contracts.

With Fluor Hanford operating under a contract extension, DOE is planning to

split its work into a support services contract and a central Hanford

cleanup contract.

"My concern has always been the impact of DOE's policies and decisions on

the local community, the Hanford work force and cleanup progress," Hastings

said in a statement. "With three new contracts, there are questions about

what change will mean. I'll be watching closely and monitoring how the

contract process is unfolding."