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A $1.4 billion, five-year contract for the management and operation of the Bettis Atomic Power Laboratory was awarded to Bechtel National, Inc., of San Francisco, the Department of Energy announced today. This was the first time the contract was competed since the laboratory's inception in 1948. The 100-year old privately owned company has extensive nuclear and environmental restoration experience.

Bettis, a government-owned laboratory which employs some 2,100 people at West Mifflin, PA, and approximately 600 in Idaho Falls, ID, is a single-focus laboratory supporting design, construction, operation, servicing, and decommissioning of naval nuclear propulsion plants. These plants provide propulsion and electrical power for all the U.S. Navy's submarines and most of its aircraft carriers.

Six proposals were submitted for consideration as a result of an April solicitation. Key features of the competition included a five-year base period of performance with an option for an additional five years and a requirement to retain the current workforce at equivalent pay and benefits. The competition was carried out in four months - from release of solicitation to award - using streamlined prcedures, such as award without discussions.

Admiral F.L. Bowman, Director, Naval Reactors Propulsion, has emphasized that "the heart of the Naval Reactors Program is not just our impressive technology, but the dedicated men and women who work hard to develop, maintain and improve it."

Recommendations from the Secretary of Energy's contract reform initiative are implemented in the contract. Reforms focus on areas that strengthen management and cost control, including assumption of greater liability by the contractor. Westinghouse Electric Co., holds the current contract, which expires on Sept. 30, 1998, and has been the site's management contractor since 1948.

- DOE -

R-98-103