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June 17, 2024 | Tom Ballard

NNSA awards M&O contract for Pantex Plant to PanTeXas Deterrence LLC

The anticipated four-month transition period from Consolidated Nuclear Security LLC is planned to start in mid-July 2024.

The Department of Energy’s National Nuclear Security Administration (NNSA) announced late last week that it has selected PanTeXas Deterrence LLC for the Management and Operating (M&O) contract for the Pantex Plant located in Amarillo, TX. PanTeXas Deterrence is a limited liability company consisting of BWXT Technical Services Group Inc., Fluor Federal Services Inc., SOC LLC,  and the Texas A&M University System.

The current M&O contract for the Y-12 National Security Complex and Pantex is held by Consolidated Nuclear Security LLC (CNS). The Pantex portion of CNS’ contract expires this September 30. It will be extended until the transition period is complete to provide stability for the workforce employed under the current contract and to ensure efficient continuity of operations for the vital NNSA missions performed there.

A little more than two years ago, NNSA reversed course, announcing that it planned to separate the management contracts for each site (see article here).

The new contract for the Pantex Plant includes a four-month transition period currently planned to start in mid-July 2024 and a five-year base period with three five-year options, for a total contract period of up to 20 years and four months if all options are exercised. The estimated value of the contract is $1.5 billion annually.

“For over 40 years, Pantex has been the nation’s primary nuclear weapon assembly and disassembly center, allowing the nuclear deterrent to stay safe, secure, and reliable at all times,” said Jill Hruby, NNSA Administrator. “The selection of PanTeXas Deterrence through full and open competition will help us accelerate weapon delivery and technology insertion, execute our infrastructure modernization, and continuously improve safety and security.”

NNSA has designed the contract and transition period to minimize the impact on workers at Pantex. Aside from a handful of top managers, the contract requires PanTeXas Deterrence to offer a position to all current employees it deems necessary for completing the requirements of the contract, and to offer the same pay to all employees who remain in their current positions. PanTeXas Deterrence will also be required to become the sponsor of the existing benefit plans.

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