BUFFALO, N.Y. and BOISE, Idaho, June 29 /PRNewswire-FirstCall/ -- The U.S. Department of Energy (DOE) announced today that it awarded a four-year contract for management and operation of the West Valley Demonstration Project (WVDP) to West Valley Environmental Services Company, LLC (WVES), a team led by Washington Group International.
The team consisting of Washington Group International, Jacobs Engineering, Parallax, and ECC brings together leaders in safety, site closure, cost management, and performance for the WVDP, a DOE environmental cleanup and waste-management project conducted in cooperation with the New York State Energy Research and Development Authority. The contract is valued at about $159 million over the four-year period, which runs from October 1, 2007, through June 30, 2011. The scope of the cost-plus-award-fee contract includes waste disposition, decontamination, deactivation, and disposition of facilities, and infrastructure/landlord activities.
The announcement came on the heels of a three-month contract extension for Washington Group subsidiary West Valley Nuclear Services Company (WVNSCO), which will continue to operate the site until October 1, 2007, when WVES takes over site management. Since the WVDP's inception in 1982, WVNSCO has delivered engineering, construction, and management expertise at the DOE-led environmental cleanup and waste-management project located approximately 35 miles south of Buffalo. Under WVNSCO's management, the WVDP was the first site in the nation to successfully design, construct, operate, shut down, and dismantle a full-scale high-level radioactive-waste-solidification system. During its operation, the WVDP successfully solidified the site's inventory of liquid high-level waste, eliminating the potential for release of the dangerous liquid into the environment. The full-scope waste-treatment project was completed in 2005. Recent work has included removal of obsolete systems and facilities from the site and shipments of low-level radioactive waste.
"The selection of WVES as site contractor is indicative of the level of confidence the DOE has placed in Washington Group International and its partners," said Vice Admiral Albert H. Konetzni, USN (ret), president of newly formed WVES. "The entire management team of WVES is dedicated to build on the strong tradition of providing value for our customers, the U.S. Department of Energy, and the New York State Energy Research and Development Authority, as well as taxpayers. We have a dedicated workforce with a proven track record, and we intend to build on that record."
Washington Group International provides the talent, innovation, and proven performance to deliver integrated engineering, construction, and management solutions for businesses and governments worldwide. Headquartered in Boise, Idaho, with more than $3 billion in annual revenue, the company has approximately 25,000 people at work around the world providing solutions in power, environmental management, defense, oil and gas processing, mining, industrial facilities, transportation, and water resources. For more information, visit http://www.wgint.com/.
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are identified by the use of forward-looking terminology such as may, will, could, should, expect, anticipate, intend, plan, estimate, or continue or the negative thereof or other variations thereof. Each forward-looking statement, including, without limitation, any financial guidance, speaks only as of the date on which it is made, and Washington Group undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which it is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. The forward-looking statements are necessarily based on assumptions and estimates of management and are inherently subject to various risks and uncertainties. Actual results may vary materially as a result of changes or developments in social, economic, business, market, legal, and regulatory circumstances or conditions, both domestically and globally, as well as due to actions by customers, clients, suppliers, business partners, or government bodies. Performance is subject to numerous factors, including demand for new power generation and for modification of existing power facilities, public sector funding, demand for extractive resources, capital spending plans of customers, and spending levels and priorities of the U.S., state and other governments. Results may also vary as a result of difficulties or delays experienced in the execution of contracts or implementation of strategic initiatives. For additional risks and uncertainties impacting the forward-looking statements contained in this news release, please see "Note Regarding Forward-Looking Information" and "Item 1A. Risk Factors" in Washington Group's annual report on Form 10-K for fiscal year 2006.
