Fluor to be paid $6.9M for 2016 work

The U.S. Department of Energy’s cleanup contractor on the desert site is expected to earn $6.9 million in performance award and incentive fees for its work in 2016, DOE officials said this week.

Fluor Idaho began earning the fees — similar to a bonus — when it took over the contract in June from previous contractors CH2M-WG Idaho and Idaho Treatment Group. It has been paid $4.1 million so far, but DOE spokeswoman Danielle Miller said Fluor is expected to receive an additional $2.8 million for work it hasn’t yet invoiced.

Typically, contractors — including Idaho National Laboratory contractor Battelle Energy Alliance — receive formal report cards from DOE at the end of each fiscal year. DOE critiques the contractor and describes what percentage of the total available fee payment has been awarded. Miller said Fluor will not receive its first report card until Sept. 30, the end of fiscal year 2017, which will be its first full year on the job.

Some of the awards under Fluor’s contract are set at a fixed rate. Others are provisional, and subject to a final determination by DOE when the report card is issued.

Fluor Idaho won the $1.4 billion, five-year contract in February, beating a team led by AECOM.

The contractor’s work west of Idaho Falls includes cleaning up buried radioactive waste, watching over spent nuclear fuel and operating a facility meant to reprocess radioactive sodium-bearing liquid waste.

Luke Ramseth can be reached at 542-6763. Twitter: @lramseth