Basic Nuclear Propulsion
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This DII Spotlight article covers American nuclear propulsion industrial base contracts since the beginning of FY 2006. The USA has had an all-nuclear submarine fleet for over 50 years, a policy that dates back to the visionary Admiral Hyman Rickover. On the surface, America’s aircraft carriers became an all-nuclear fleet with the retirement of the USS Kitty Hawk [CV 63], and FY 2008-09 spending legislation pushed the US Navy to use nuclear power in its future CG (X) cruisers and new amphibious ship classes. At present, however, carriers are the only nuclear-powered American surface ships on the drawing board.
The civilian nuclear sector has seen major advances over the last 2 decades, and so has the military sector. The commitment to a nuclear fleet includes funding for those technical advances, as well as work to maintain both the reactors on board American ships, and the industrial base that supports them.
Nuclear Naval Propulsion Around the World
CVN Charles de Gaulle
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Several navies around the world currently use nuclear propulsion in at least some ships and submarines. Britain’s sale of its SSK Upholder Class to Canada (as the problem-plagued Victoria Class) has made them an all-nuclear submarine fleet, like their American allies. China, France, India, and Russia all use naval nuclear propulsion within mixed submarine fleets, and Brazil has launched an SSN program of its own.
On the surface, America’s aircraft carriers are joined by France’s problem-plagued aircraft carrier FS Charles de Gaulle, and by Russia’s Kirov Class cruisers.
The saga of the Charles de Gaulle serves as a reminder that adapting nuclear power technologies to the small spaces of a submarine, or installing them a surface warship, is no trivial feat. Much can go wrong, even in nations that have considerable naval nuclear propulsion experience.
On the flip side, advances in design can offer significant benefits. The new nuclear plants in America’s Virginia Class and Seawolf Class fast attack subs, and in Britain’s new Astute Class fast attack submarines, offer designs that will save billions of dollars by eliminating the standard mid-life reactor refueling.
American Contracts (FY 2006 – Present)
SSN-774 cutaway:
Virginia Class
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Most contracts noted here are awarded by the US Naval Sea Systems Command (NAVSEA) in Washington, DC. The exception is Babcock & Wilcox contracts. They’re issued by the US Department of Energy, rather than the Department of Defense, even though they’re defense-related.
Completion dates or other additional information are not provided for Naval Nuclear Propulsion Program contracts as a matter of official policy. Other contracts related to maintenance, however, may show completion dates.
FY 2017
Over $13 billion in contracts; mPower fails to gain traction.
CVN-71, Indian Ocean
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December 29/16: Bechtel Plant Machinery will deliver nuclear propulsion components in a $303 million US Navy contract. The components provide nuclear propulsion capabilities to power a variety of Navy vessels, including submarines and aircraft carriers, by drawing power from a small nuclear power plant installed on the vessel. Bechtel received $205 million in Fiscal 2016 shipbuilding and Fiscal 2017 procurement funding at the time of the award.
FY 2013 – 2014
Over $13 billion in contracts; mPower fails to gain traction.
July 23/14: Bechtel Plant Machinery Inc. in Monroeville, PA receives a $39.4 million cost-plus-fixed-fee contract modification for naval nuclear propulsion components. All funds are committed immediately, and work will be performed in Monroeville, PA (99%), and Schenectady, NY (1%) (N00024-12-C-2106).
May 5/14: Bechtel Plant Machinery Inc. in Monroeville, PA receives a $17.8 million cost-plus-fixed-fee modification to previously awarded contract for naval nuclear propulsion components. All funds are committed immediately, and work will be performed in Schenectady, NY (68%), and Monroeville, PA (32%) (N00024-12-C-2106).
April 30/14: Babcock & Wilcox Nuclear Operations Group announces 7 orders from the US Naval Reactors Program, worth about $195 million in total.
The first 4 are new, incrementally funded contracts for SSBN-X submarine reactor engineering design, fabrication and development work. They total $76.8 million.
A $23.7 million FY 2014 order will manufacture nuclear components to support US defense programs, including naval nuclear power systems for submarines and aircraft carriers. It’s part of a previously announced $1.3 billion contract.
A $76 million FY 2014 order buys material to be used in the assembly of nuclear propulsion components, as part of a previously announced $366 million contract (q.v. May 15/13).
Finally, a new $18.8 million contract covers FY 2014 disassembly and recovery of highly enriched uranium materials. Sources: B&W NOG, “B&W Announces $195 Million in Naval Reactors Contracts and Orders”.
April 14/14: mPower. B&W had hoped for civilian projects using its small modular mPower reactor design (q.v. July 14/10), which built on US naval nuclear reactor technology to create safer and more compact 3++ generation reactors. Unfortunately, that hasn’t worked out. From “B&W Announces Restructuring of Small Modular Reactor Program”:
“B&W continues to believe in the strength of the mPower technology, but without the ability to secure significant additional investors or customer Engineering, Procurement and Construction contracts to provide the financial support necessary to develop and deploy mPower reactors, the current development pace will be slowed…. B&W notified the U.S. Department of Energy (DOE) on April 9 of its plans for reduced spending, indicating it would work with the DOE and other stakeholders during the next one to two months to confirm the best path forward to develop a mutually agreeable plan including program milestones for continuing the cost-shared industry partnership program. B&W expects to invest up to $15 million annually, beginning the third quarter of 2014.”
mPower downgraded
March 28/14: Personnel. Babcock & Wilcox restructures its government operations, moving the Nuclear Operations Group, Nuclear Fuel Services, and B&W Technical Services Group, Inc. under President and COO Peyton S. (Sandy) Baker. In parallel, Kenneth R. Camplin is named Government Operations VP and Chief Business Development Officer, and Charles G. (Chuck) Spencer, will serve as COO of the Technical Services Group. Sources: B&W, “B&W Restructures Government Operations; Names Peyton S. Baker to Lead”.
Feb 27/14: Babcock & Wilcox Nuclear Fuel Services, Inc. receives 2 contract worth about $302 million from the US Department of Energy’s Naval Reactors Laboratory Field Office. Both are 1-year contracts with an added 1-year option.
The 1st contract involves the manufacture and delivery of fuel and support activities for the US Naval Nuclear Propulsion Program, as the program’s sole provider since 1964. The 2nd covers development of material for future Naval Reactors programs.
Work under the contracts will be performed at NFS facilities in Erwin, TN from January 2014 through February 2016. Sources: B&W, “B&W Subsidiary Awarded Up to $302 Million in Contracts for Naval Reactors Fuel, Materials Services”.
Nov 5/13: Bechtel Marine Propulsion Corp. in San Francisco, CA receives a $7.07 billion contract modification for naval nuclear propulsion work at the Bettis & Knolls Atomic Power Laboratories. Bechtel says it’s 1 of 2 concurrent 5-year contracts that add up to about $13 billion, split between the US Department of Energy and the US Navy.
Under the two 5-year extensions, Bechtel will continue providing management and operations services at the Bettis and Knolls Atomic Power Laboratories, and will continue its work in support of the US Naval Reactors Program through Sept 30/18. Bechtel has provided management and operation services for the labs since 2009, and their management and operation services at the Bettis Laboratory extend all the way back to 1999.
Work will be performed in Schenectady, NY (58%), Pittsburgh, PA (32%), and Idaho Falls, ID (10%). $82.9 million in FY 2014 funding is committed immediately, and if fully funded, $484.7 million will expire at the end of the fiscal year, on Sept 30/14 (N00024-08-C-2103). Sources: Pentagon | Bechtel, “Bechtel Awarded Contract Extensions for US Naval Reactors Program”.
$13 billion multi-year extensions
Oct 29/13: Bechtel Plant Machinery Inc. in Monroeville, PA receives a $197.6 million cost-plus-fixed-fee contract modification for naval nuclear propulsion components. All funds are committed immediately, using the Navy’s FY 2014 other procurement funds. Work will be performed in Monroeville, PA (93%), and Schenectady, NY (7%) (N00024-12-C-2106).
May 21/13: Bechtel Plant Machinery Inc. in Monroeville, PA receives a $7.1 million cost-plus-fixed-fee contract modification for Naval Nuclear Propulsion Components. Work will be performed in Monroeville, PA (80.4%), and Schenectady, NY (19.6%) (N00024-12-C-2106).
May 15/13: Babcock & Wilcox Nuclear Operations Group, Inc. announces a $366 million contract from the US Naval Reactors Program, for material to be used in the assembly of nuclear propulsion components. An initial $75 million has been released, with the rest available over the next 6 years from 2014 – 2019. Work will take place in B&W NOG’s Lynchburg, VA facility. Sources: B&W NOG, May 15/13 release.
Feb 11/13: Babcock & Wilcox Nuclear Operations Group, Inc. announces 2 U.S. Naval Reactors Program contracts totaling approximately $36 million, building nuclear components for Virginia Class submarines. $32 million is for nuclear propulsion components, and $4 million is for long lead-time items. Work began in Q4 2012 and will be performed at B&W’s Lynchburg, VA facility over a 4-year period. Sources: B&W NOG, Feb 11/13 release.
Feb 5/13: Babcock & Wilcox Nuclear Operations Group, Inc. announces “more than $510 million” in contracts to make nuclear components over an 8-year to support U.S. defense programs, “…including the manufacture of naval nuclear power systems for submarines and aircraft carriers. The entire amount was appropriated in the fourth quarter of 2012.”
Over $445 million was issued as options under the $2 billion contract awarded in 2010 (q.v. Oct 19/09), while over $65 million is issued under a new FY 2013 agreement. Work will be performed at B&W NOG’s Lynchburg, VA facility; at Barberton and Euclid, OH; and Mt. Vernon, IN facilities, beginning January 2013. Sources: B&W NOG, Feb 5/13 release.
Nov 20/12: Bechtel Plant Machinery Inc. in Monroeville, PA receives a $330.1 cost-plus-fixed-fee modification to previously awarded contract for naval nuclear propulsion components.
Work will be performed in Monroeville, PA (91.09%) and Schenectady, NY (8.91%). $253 million is committed at the time of award, and $1.6 million will expire at the end of the current fiscal year, on Sept 30/12 (N00024-12-C-2106).
Nov 15/12: Bechtel Plant Machinery Inc. in Monroeville, PA receives a $355.9 million cost-plus-fixed-fee contract for naval nuclear propulsion components.
Work will be performed in Monroeville, PA (68.75%), and Schenectady, NY (31.25%). US Naval Sea Systems Command in Washington, DC manages the contract (N00024-13-C-2121).
FY 2012
About $1.5 billion in contracts.
July 12/12: Babcock & Wilcox Nuclear Operations Group, Inc. announces 3 US Naval Reactors Program contracts, worth a total of about $73 million. The contracts are for “technology development and nuclear manufacturing in support of US Navy training operations and other naval nuclear-related programs.”
June 28/12: Babcock & Wilcox Nuclear Operations Group, Inc. announces 2 US Naval Reactors Program contracts, worth a total of about $82 million. They’ll make steam generating components, and perform disassembly and recovery of highly enriched uranium materials.
May 15/12: Bechtel Plant Machinery, Inc. in Monroeville, PA receives a $20 million cost-plus-fixed-fee contract modification for Naval Nuclear Propulsion components. Work will be performed in Monroeville, PA (96.33%), and Schenectady, NY (3.67%), under (N00024-12-C-2106).
May 9/12: Babcock & Wilcox Nuclear Operations Group, Inc. (B&W NOG) announces a 5-year, $130 million contract for nuclear reactor components, “based on recent technological advances that will be used on the U.S. Navy’s Virginia-Class submarines.” The release adds that this award is not part of any similar, previously announced contracts, but stands on its own as an added buy.
Work will be performed at B&W NOG’s Lynchburg, VA facility, beginning immediately.
Feb 6/12: Bechtel Plant Machinery, Inc. in Monroeville, PA receives a $583 million cost-plus-fixed-fee contract for naval nuclear propulsion components. Work will be performed in Monroeville, PA (65.9%), and Schenectady, NY (34.1%), under (N00024-12-C-2107).
Feb 1/12: Bechtel Marine Propulsion Corp. in San Francisco, CA receives a $359.7 million cost-plus-fixed-fee contract modification for nuclear propulsion work at the Bettis Atomic Power Laboratory and Knolls Atomic Power Laboratory. Work will be performed in Norwich, CT (84.9%); Monroeville, PA (12.5%); and Norfolk, VA (2.6%), under (N00024-08-C-2103).
Feb 1/12: Bechtel Plant Machinery, Inc. in Monroeville, PA receives a $12.6 million cost-plus-fixed-fee contract modification to exercise an option for naval nuclear propulsion components. Work will be performed in Monroeville, PA (N00024-12-C-2106).
It’s possible that this announcement supersedes an erroneous announcement the day before.
Jan 31/12: Bechtel Plant Machinery, Inc. in Monroeville, PA receives a $12.5 million cost-plus-fixed-fee contract modification to exercise an option for naval nuclear propulsion components. Work will be performed in Monroeville, PA (N00024-12-C-2106).
Nov 17/11: Bechtel Plant Machinery, Inc. in Monroeville, PA receives a $261.6 million cost-plus-fixed-fee contract for naval nuclear propulsion components. $140.8 million of that is being committed now, with the rest available if and as needed.
Work will be performed in Monroeville, PA (97.7%), and Schenectady, NY (2.3%). $1,000,000 will expire at the end of the current fiscal year, on Sept 30/12 (N00024-12-C-2106).
Nov 3/11: Babcock & Wilcox subsidiary Nuclear Fuel Services, Inc. (NFS) announces a $114.9 million contract extension to manufacture and deliver fuel and support activities for the U.S. Naval Nuclear Propulsion program.
NFS manufactures nuclear fuel for the U.S. Navy’s fleet of nuclear-powered aircraft carriers and submarines, also processes HEU in a highly secure, NRC-licensed Category 1 facility. They’ve been doing that for over 50 years.
FY 2011
About $1.96 billion in contracts so far; $2b contract to B&W from 2011-2013.
May 27/11: Bechtel Plant Machinery, Inc., Monroeville, PA receives a $26.8 million contract modification for naval nuclear propulsion components. Work will be performed in Monroeville, PA (93.7%), and Schenectady, NY (6.3%) (N00024-07-C-2100).
Feb 11/11: Babcock & Wilcox subsidiary Nuclear Fuel Services, Inc. (NFS) announces a $79 million 2011 contract extension to manufacture and deliver fuel and support activities for the U.S. Naval Nuclear Propulsion program.
Jan 13/11: Babcock & Wilcox Nuclear Operations Group, Inc. announces an award of approximately $2 billion for the manufacture of nuclear components to support US defense programs, which includes the manufacture of naval nuclear power systems for submarines and aircraft carriers. The base portion of the contract, which totals $807 million, will be funded in January and March and included in backlog at the end of 2010. The options are expected to be funded in FY 2012 and 2013. The work will be performed over a 10-year period, beginning in January 2011. Babcock & Wilson was spun off from McDermott International in July 2010 (see Jan 27/10 entry re the Nuclear Operations Group). Babcox & Wilcox release.
Nov 29/10: Bechtel Plant Machinery in Monroeville, PA receives a $232.3 million contract modification to for naval nuclear propulsion components. Work will be performed in Monroeville, PA (90.2%), and Schenectady, NY (9.8%). $3.6 million will expire at the end of the current fiscal year, on Sept 30/10 (N00024-07-C-2100).
This brings the firm’s announced FY 2011 contracts to $1.047 billion.
Oct 29/10: Bechtel Plant Machinery, Inc. in Monroeville, PA receives a $303.5 million contract modification for naval nuclear propulsion components.
Work will be performed in Monroeville, PA (70.8%), and Schenectady, NY (29.2%). This is a NAVSEA contract (N00024-07-C-2102).
Oct 25/10: Bechtel Plant Machinery, Inc. in Monroeville, PA receives a new $511.3 million cost-plus-fixed-fee contract for naval nuclear propulsion components.
Work will be performed in Monroeville, PA (70.8%), and Schenectady, NY (29.2%). This is a NAVSEA contract (N00024-11-C-2127).
FY 2010
mPower brings miniaturization to civil tech; $1.39 billion in contracts.
mPower reactor
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July 14/10: mPower. All that work on more compact reactors may be about to start paying civilian dividends as well. Babcock & Wilcox Nuclear Energy, Inc. and Bechtel Power Corporation announce a formal alliance to design, license and deploy the world’s first commercially viable Generation III++ small modular nuclear power plant. This is a purely civilian project, but it draws heavily on existing experience in both civilian and military reactor construction, and could have feedback loops into future military design and deployment.
This new “Generation mPower” alliance aims to build on the 125 megawatt B&W mPower SMR(Small Modular Reactor) development program underway for the past 2 years. B&W will focus on designing and testing the nuclear steam supply system (NSSS) and nuclear island, including the design certification application development and submission, and NSSS production. Bechtel will complement these responsibilities with integrated engineering and project management leadership. Depending on regulatory approval and other factors, the alliance believes that the first plant could be deployed as early as 2020. B&W release | B&W feature, incl. video. | Bechtel release | Bechtel feature, incl. video. | Wall St. Journal.
April 29/10: Bechtel Plant Machinery Inc. in Monroeville, PA receives a $37.3 million modification to a previously awarded contract for naval nuclear propulsion components. Work will be performed in Monroeville, PA (90%) and Schenectady, NY (10%). Contract funds in the amount of $923,558 will expire at the end of the current fiscal year (N00024-07-C-2100).
Jan 27/10: Babcock & Wilcox Nuclear Operations Group, Inc. announces an award of approximately $450 million for the manufacture of nuclear components to support U.S. defense programs, which includes the manufacture of U.S. Naval nuclear power systems for submarines and aircraft carriers.
Babcock & Wilcox is an operating group of McDermott International, Inc., and employs about 4,000 people. B&W NOG is headquartered in Lynchburg, VA, with locations in Barberton, OH; Mount Vernon, IN; and Euclid, OH; as well as at subsidiary Nuclear Fuel Services, Inc. in Erwin, TN. Together, the facilities offer a range of nuclear components and services, from providing nuclear fuel and the manufacture of reactors for U.S. Naval submarines and aircraft carriers to other nuclear and non-nuclear R&D and component production. The company also performs plutonium and uranium decontamination and decommissioning, facility stabilization, and nuclear materials management. Babcock & Wilcox release.
Nov 18/09: Bechtel Plant Machinery Inc. in Monroeville, PA receives a $248.8 million modification to a previously awarded contract for naval nuclear propulsion components. Work will be performed in Monroeville, PA (95%) and Schenectady, NY (5%). Contract funds in the amount of $326.7 million will expire at the end of the current fiscal year (N00024-07-C-2100).
Nov 10/09: Bechtel Plant Machinery Inc. in Monroeville, PA receives a $110.5 million modification to a previously awarded contract for additional naval nuclear propulsion components. Work will be performed in Schenectady, NY (86%) and Monroeville, PA (14%) (N00024-07-C-2102).
Oct 19/09: Bechtel Plant Machinery Inc. in Monroeville, PA receives a $523.5 million cost-plus-fixed fee contract for naval nuclear propulsion components. Work will be performed in Monroeville, PA (67%) and Schenectady, NY (33%)
Subsequent releases indicate that this contract actually has a total potential value of over $2 billion (N00024-10-C-2119).
Oct 13/09: General Dynamics Electric Boat Corp. in Groton, CT received an $18.1 million modification to a previously awarded contract for reactor plant planning yard services for nuclear-powered submarines and support yard services for the US Navy’s moored training ships. The contractor will furnish, fabricate, or acquire such materials, supplies and services as may be necessary to perform the functions of the planning yard for reactor plants and associated portions of the propulsion plants for nuclear-powered submarines.
Work will be performed in Groton, CT (95%), Charleston, SC (5%), and is expected to be complete by September 2010. This contract was not competitively procured by the Naval Sea Systems Command in Washington, DC (N00024-07-C-2103).
FY 2009
$2.66 billion in contracts, which includes part of a $2.66 billion, 10-year contract to B&W.
May 29/09: Bechtel Plant Machinery Inc. in Monroeville, PA receives an $11.7 million modification to a previously awarded contract for Naval Nuclear Propulsion Components. Work will be performed in Pittsburgh, PA (90.5%) and Schenectady, NY (9.5%). Contract funds in the amount of $233,157 will expire at the end of the current fiscal year (N00024-07-C-2100).
Feb 25/09: Babcock & Wilcox Nuclear Operations Group, Inc. announces awards “in excess of $1 billion” for the manufacture of nuclear components to support U.S. defense programs, including the manufacture of U.S. Naval nuclear power systems for submarines and aircraft carriers. This work is part of a previously negotiated and announced set of contracts that, if fully executed, will be worth more than $2.66 billion in revenue over 10 years.
As a result of this increased workload, B&W NOG expects to hire an estimated 250 new salaried and hourly employees throughout 3 of its locations. B&W NOG is headquartered in Lynchburg, VA, with locations in Barberton, OH; Mount Vernon, IN; and Euclid, OH; as well as at subsidiary Nuclear Fuel Services, Inc. in Erwin, TN.
Nov 3/08: Curtiss-Wright Corporation announces a contract from Bechtel Plant Machinery, Inc. (BPMI), to provide critical valves for the nuclear propulsion systems in the U.S. Navy’s next 4 Virginia-Class submarines, and the 2nd Ford-Class Aircraft Carrier [CVN 79]. The contract contains options for up to 4 more sets: a submarine ship-set and an aircraft carrier ship-set funded in 2008, and 2 additional submarine ship-sets to be funded in 2009.
The value is over $83 million if all options are exercised, and the initial award is for an initial ship-set of submarine valves and long lead materials valued at approximately $15 million. Curtiss-Wright’s Flow Control segment will perform the work at its facility in East Farmingdale, NY. Delivery is scheduled to commence in 2009 and continue through 2017.
Variants of Curtiss-Wright’s Smart, Leakless Valves are already used in the commercial nuclear power industry. These fully automated, sealed solenoid valves can control the flow of liquids, gas, and steam, withstanding up to 2500 psi pressure and 670F temperatures while requiring little to no maintenance over long periods. The firm is now using the valve beyond nuclear power applications, and has a $62 million contract to retrofit all of the JP-5 jet fuel pumping station valves on the U.S. Navy’s Nimitz class aircraft carriers.
Oct 30/08: Bechtel Plant Machinery Inc. in Pittsburgh, PA receives a $605 million modification to previously awarded contract for additional naval nuclear propulsion components. Work will be performed in Pittsburgh, PA (68%) and Schenectady, NY (32%) (N00024-07-C-2102).
Oct 16/08: Babcock & Wilcox announces a new award for the manufacture of nuclear components in support of U.S. defense programs. The contracts employ a multiple-award approach over a number of years, which is designed to give the U.S. government cost predictability, while providing B&W with additional financial incentives based on performance.
Under this award, the contracts for 2008 are valued in excess of $230 million. They are the initial contracts under a negotiated set of orders that, if executed, would total more than $960 million between 2008 – 2010. These awards are in addition to a $1.7 billion series of contracts that B&W previously announced for 2007 – 2009. If all future orders are placed, the total value of the awards for the period of 2007 – 2010 would be approximately $2.66 billion.
Oct 15/08: Bechtel Plant Machinery Inc. in Pittsburgh, PA receives a $200.5 million cost plus fixed fee modification to previously awarded contract for Naval nuclear propulsion components. Work will be performed in Pittsburgh, PA (97%) and Schenectady, NY (3%) (N00024-07-C-2100).
Oct 15/08: KAPL Inc. (Knolls Atomic Power Laboratory) in Schenectady, NY receives a $62.2 million cost plus fixed fee modification to previously awarded contract for Naval nuclear propulsion work during FY 2009. This is the contract’s 9th year of performance.
Work will be performed in Schenectady, NY, and funding in the amount of $39.1 million will expire at the end of the current fiscal year. The original contract was competitively procured (N00024-00-C-4011).
Oct 14/08: Bechtel Plant Machinery Inc. in Pittsburgh, PA received a $349 million cost plus fixed fee contract for naval nuclear propulsion components. Work will be performed in Pittsburgh, PA (77%) and Schenectady, NY (23%) (N00024-09-C-2108).
Oct 10/08: Bechtel Bettis Inc. in West Mifflin, PA received a $205.3 million cost-plus-fixed fee modification for FY 2009 naval nuclear propulsion work at the Bettis Atomic Power Laboratory. Work will be performed in West Mifflin, PA, and contract funds in the amount of $90 million will expire at the end of FY 2009 (N00024-98-C-4064)
FY 2008
$6-9.7 billion to operate Bettis and Knolls Atomic Power Laboratories; $1.58 billion in other contracts.
Sept 18/08: Bechtel Marine Propulsion Corp. in San Francisco, CA receives a cost plus fixed fee contract for “Naval Nuclear Propulsion work.” What this means is that Bechtel Marine Propulsion Corporation (BMPC) has been awarded contracts to operate the Bettis and Knolls Atomic Power Laboratories, under a 5-year contract with the Department of Energy (DOE) and the U.S. Navy’s Naval Sea Systems Command (NAVSEA). This contract was competitively procured, with 3 offers received via the U.S. Department of Energy’s Industry Interactive Procurement System (N00024-08-C-2103).
The Bettis Atomic Power Laboratory is currently operated by Bechtel Bettis, Inc.; it has facilities in Pittsburgh, PA; Idaho Falls, ID; and Charleston, SC. The Knolls Atomic Power Laboratory in Schenectady, NY, is currently operated by Lockheed Martin subsidiary KAPL, Inc. BMPC will assume operation of the Bettis and Knolls Atomic Power Laboratories on Feb 1/09, following a 4-month transition period.
Bechtel’s release values this contract at $6 billion, but the Pentagon’s DefenseLINK adds that the contract includes options which, if exercised, would bring the cumulative value to an estimated $9.724 billion. Work will be performed in Schenectady, NY (30%); Idaho Falls, ID (15%); and Pittsburgh, PA (55%). See also Bechtel release.
April 16/08: Bechtel Plant Machinery Inc. in Pittsburgh, PA received an $80.2 million cost-plus-fixed-fee contract modification to previously awarded contract for Naval Nuclear Propulsion Components. Work will be performed in Pittsburgh, PA (99%) and Schenectady, NY (1%) (N00024-07-C-2100).
Feb 22/08: Bechtel Plant Machinery Inc. in Pittsburgh, PA received a $312.6 million modification to previously awarded cost-plus-fixed fee contract for Naval nuclear propulsion components. Work will be performed in Pittsburgh, PA (68.3%, and Schenectady, NY (31.7%) (N00024-08-C-2118).
Dec 6/07: Bechtel Plant Machinery Inc. in Pittsburgh, PA received a $165.7 million modification to previously awarded contract for Naval Nuclear Propulsion Components. Work will be performed in Pittsburgh, PA (74%), and Schenectady, N.Y. (26%) (N00024-07-C-2100).
Oct 16/07: Bechtel Plant Machinery Inc. in Pittsburgh, PA received a $282.3 million cost-plus-fixed fee contract for Naval Nuclear Propulsion Components. Work will be performed in Pittsburgh, PA (62%) and Schenectady, NY (38%). The contract was not competitively procured (N00024-08-C-2118).
Oct 16/07: Bechtel Plant Machinery Inc. in Pittsburgh, PA received a $124.4 million cost-plus-fixed fee modification to previously awarded contract (N00024-07-C-2102) for additional naval nuclear propulsion components. Work will be performed in Pittsburgh, PA (52%) and Schenectady, NY (48%) (N00024-07-C-2102).
Oct 12/07: Bechtel Bettis Inc., Bettis Atomic Power Laboratory, West Mifflin, PA received a $450.7 million cost-plus-fixed-fee modification to previously awarded contract (N00024-98-C-4064) for Naval Nuclear Propulsion work at the Bettis Atomic Power Laboratory. Work will be performed in West Mifflin, PA. Contract funds in the amount of $242.2 million will expire at the end of the current fiscal year.
GlobalSecurity.org notes that:
“Bettis [Atomic Power Laboratory] is engaged solely in the design and development of naval nuclear propulsion plants. The Naval Nuclear Propulsion Program is a joint Navy/DOE program responsible for all matters pertaining to Naval nuclear propulsion. This Program is distinct from the remainder of DOE both by Presidential Executive Order and by statute.
The Lab provides technical support for the safe and reliable operation of existing Naval reactors. Bettis designed reactor plants for the first nuclear-powered submarine (USS Nautilus), the first nuclear-powered aircraft carrier (USS Enterprise), all of the Nimitz-class aircraft carriers, and the USS Seawolf [attack submarines]. …A major new initiative for the Laboratory is design of the nuclear propulsion plants and electrical power systems for the next class of US Navy aircraft carriers.”
The CVN-21 Class super-carriers‘ new reactor is an important part of the effort to slash their lifetime costs by up to $5 billion per ship.
Oct 11/07: KAPL Inc. (Knolls Atomic Power Laboratory) in Schenectady, NY received a $168.9 million cost-plus-fixed-fee modification to previously awarded contract (N00024-00-C-4011) for Naval nuclear propulsion work at the Knolls Atomic Power Laboratory. Work will be performed in Schenectady, NY. Contract funds in the amount of $109 million will expire at the end of the current fiscal year.
Oct 10/07: General Dynamics Electric Boat Corp. in Groton, CT received an $16.2 million modification to previously awarded contract (N00024-07-C-2103) for reactor plant planning yard services for nuclear-powered submarines and support yard services for the US Navy’s moored training ships. Work will be performed in Groton, CT (95%), Charleston, SC (5%), and is expected to be complete by September 2008. This contract was not competitively procured by the Naval Sea Systems Command in Washington, DC.
FY 2007
B&W finishes asbestos-related financial reorganization; Up to $1.7b to BWXT through 2007-2009; $1.62 billion in contracts.
June 6/07: Bechtel Plant Machinery Inc. in Schenectady, NY received a $69.9 million cost-plus-fixed-fee modification to previously awarded contract (N00024-07-C-2100) for Naval nuclear propulsion components. Work will be performed in Pittsburgh, PA (85%) and Schenectady, NY (15%).
April 30/07: Bechtel Plant Machinery Inc. in Schenectady, NY received a $13.4 million cost-plus-fixed fee modification to previously awarded contract (N00024-07-C-2101) for additional naval nuclear propulsion components. Work will be performed in Schenectady, NY.
March 30/07: McDermott International, Inc. subsidiary, BWX Technologies, Inc. (BWXT) announces 2 major U.S. Government contracts to manufacture nuclear components in support of U.S. defense programs. Taken together, the awards are worth more than $320 million, and contain options for the anticipated requirements through 2009 that could total up to $1.7 billion. BWXT can improve the contracts’ profitability by achieving certain performance measures.
BWXT, headquartered in Lynchburg, VA, supplies nuclear operations services and products to the US Government and commercial clients. BWXT also manages complex production facilities and advanced energy products. Among its diverse capabilities are decontamination and decommissioning, waste management, engineering, and project management services.
Feb 28/07: Bechtel Plant Machinery Inc. in Schenectady, NY received a $7.8 million modification to previously awarded contract (N00024-07-C-2102) for additional naval nuclear propulsion components. Work will be performed in Schenectady, NY.
Dec 27/06: McDermott International, Inc. and its subsidiaries announce that they have completed remaining financial obligations under The Babcock & Wilcox Company’s (“B&W”) plan of reorganization and settlement agreement. With the completion of these payments, the Company has satisfied all of its financial obligations to the B&W asbestos trust.
On on Dec 1/06, the Company retired the $250 million contingent promissory note utilizing the term loan feature under B&W’s credit facility; and on Dec 21/06, McDermott paid from cash on hand the $355 million contingent payment right. The contingent payment right and contingent note vested on Dec 1/06, as a result of the Fairness in Asbestos Injury Resolution Act of 2005, or other similar legislation, failing to become law by Nov 30/06. The new term debt matures on Feb 22/12, and bears interest at LIBOR plus 3.0%. McDermott may prepay this loan at any time without penalty.
By completing all payments owed to the asbestos trust ahead of schedule and during this calendar year, the Company accelerates the tax benefit associated with these payments. EVP and CFO Frank Kalman says that they expect to receive a cash tax refund of approximately $250 million, most likely in late 2007 or early 2008, subject to the resolution of open IRS tax audits.
Oct 17/06: Bechtel Plant Machinery Inc. in Schenectady, NY received a $267.5 million cost-plus-fixed fee contract for naval nuclear propulsion components, raising its contracts awarded to $442.2 million total since Oct 1/06. Work will be performed in Pittsburgh, PA (52%) and Schenectady, NY (48%). The contract was not competitively procured (N00024-07-C-2101). DID has covered previous awards to Bechtel Plant Machinery for naval nuclear propulsion components, including the previous 2 entries, plus FY 2006 awards for $166.3 million in December 2005, and another $272.2 million in October 2005. A FY 2006 award for $35.6 million was also made in on May 25, 2006, but not covered by DID at the time.
Oct 16/06: Bechtel Plant Machinery Inc. in Schenectady, NY received a $44.8 million cost-plus-fixed fee contract for naval nuclear propulsion components, which can be added to the Oct. 12, 2006 award to get a total of $174.7 million. Work will be performed in Schenectady, NY. The contract was not competitively procured (N00024-07-C-2102).
Oct 12/06: Bechtel Plant Machinery Inc. in Schenectady, NY received a $129.9 million cost-plus-fixed fee contract for Naval nuclear propulsion components. Work will be performed in Schenectady, NY (48%) and Pittsburgh, PA (52%). The contract was not competitively procured (N00024-07-C-2100)
Oct 12/06: Bechtel Bettis Inc., Bettis Atomic Power Laboratory in West Mifflin, PA received a $461.1 million cost-plus-fixed fee modification to previously awarded contract N00024-98-C-4064 for naval nuclear propulsion work (FY 2006 award: $480.7 million). Work will be performed in West Mifflin, PA. This action represents funding of the contract’s 7th year of effort, and contract funds in the amount of $104.7 million will expire at the end of the current fiscal year.
Oct 12/06: KAPL Inc. (Knolls Atomic Power Laboratory) in Schenectady, NY received a $160.4 million cost-plus-fixed-fee modification to previously awarded contract N00024-00-C-4011 for Naval nuclear propulsion work at the Knolls Atomic Power Laboratory during fiscal year 2007 (FY 2006 award: $138.6 million). Work will be performed in Schenectady, NY. This represents funding for the contract’s 7th year of performance, and funding in the amount of $25.5 million will expire at the end of the current fiscal year (N00024-00-C-4011).
Oct 11/06: General Dynamics Electric Boat Corp. in Groton, CT received an $18.7 million cost-plus-fixed-fee, level of effort contract for reactor plant planning yard services for nuclear-powered submarines and support yard services for Navy moored training ships. This work generally includes engineering services for lifecycle support, maintenance and modernization of the reactor plants and selected propulsion-plant systems of Los Angeles, Trident and Seawolf-class submarines, and the nuclear research submarine NR-1. Additionally, Electric Boat provides similar services for all systems on the Navy’s moored training ships in Charleston, SC.
Work will be performed in Groton, CT (95%) and Charleston, SC (5%), and is expected to be complete by September 2007. This contract was not competitively procured by the Naval Sea Systems Command in Washington, DC (N00024-07-C-2103).
FY 2006
B&W out of bankruptcy; $1.54 billion in contracts.
May 25/06: Bechtel Plant Machinery Inc. Schenectady, N.Y., is being awarded a $35.6 million cost-plus-fixed fee modification to previously awarded contract (N00024-02-C-2102) for Naval nuclear propulsion components. Work will be performed in Pittsburgh, PA (68%) and Schenectady, NY (32%).
Feb 22/06: McDermott International, Inc. announces that:
“The Babcock & Wilcox Company and certain of its subsidiaries (“B&W”) have now exited from Chapter 11 bankruptcy and entered into its previously announced settlement. Accordingly, B&W’s financial results will be re-consolidated with McDermott’s and its operations managed without Bankruptcy Court supervision.”
The move comes 6 years to the day since its original Chapter 11 filing. McDermott also announces that B&W has finalized and implemented its exit-financing package, and has funded its initial payment of $350 million and $1.15 billion face-amount of insurance to the asbestos-claimants’ trust. Depending on the status of national asbestos legislation at Nov 30/06, either an additional $25 million or $605 million in consideration will be made available to the trust in the time periods required.
B&W’s exit-financing package consists of 3 tranches, for a combined total of $650 million of credit capacity. In December 2005, Moody’s Investors Services and Standard & Poor’s Ratings Services issued newly assigned credit ratings for B&W of B1 and B+, respectively.
B&W out of Chap. 11
Dec 20/05: Bechtel Plant Machinery Inc. in Pittsburgh, PA received a $166.3 million cost-plus-fixed-fee modification to previously awarded contract (N00024-02-C-2102) for naval nuclear propulsion components. Work will be performed in Pittsburgh, PA (73%) and Schenectady, NY (27%).
Dec 19/05: McDermott International, Inc. subsidiary, BWX Technologies, Inc. (BWXT) announces “several major U.S. government contracts,” valued “in excess of $410 million,” for the manufacture of components in support of U.S. defense programs. BWXT, headquartered in Lynchburg, VA, supplies nuclear power operations services and products to the US government and commercial clients.
Oct 20/05: KAPL Inc. Knolls Atomic Power Laboratory in Schenectady, NY received a $138.6 million cost-plus-fixed fee modification to previously awarded contract (N00024-00-C-4011) for naval nuclear propulsion work at the Knolls Atomic Power Laboratory. Work will be performed in Schenectady, NY.
Oct 20/05: Bechtel Bettis Inc. at Bettis Atomic Power Laboratory in West Mifflin, PA, received a $480.7 million cost-plus-fixed-fee modification to previously awarded contract (N00024-98-C-4064) for naval nuclear Propulsion work at the Bettis Atomic Power Laboratory. Work will be performed in West Mifflin, PA.
Oct 18/05: Bechtel Plant Machinery Inc. in Pittsburgh, PA received a $279.2 million cost-plus-fixed-fee contract for Naval nuclear propulsion components. Work will be performed in Schenectady, NY (50%) and Pittsburgh, PA (50%). Contract funds will not expire at the end of the current fiscal year. The contract was not competitively procured (N00024-06-C-2106).
Oct 14/05: Bechtel Plant Machinery Inc. in Pittsburgh, PA received a $30.2 million cost-plus-fixed-fee modification to previously awarded contract (N00024-04-C-2104) for Naval Nuclear Propulsion Components. Work will be performed in Pittsburgh, PA.
Additional Readings
Absolute Astronomy – United States Nuclear Reactor. The USN uses light water reactor designs, mirroring the American civilian nuclear industry.
US Department of Energy – Nuclear. The US DoE is responsible for a number of military nuclear power contracts.
Babcock & Wilcox Company.
Bechtel Marine Propulsion Corporation.
Bechtel Knolls Atomic Power Laboratory – Naval Reactors Program.
Bechtel Plant Machinery, Inc.
Bechtel – Nuclear Power.