B&W Responds to GAO Recommendation on Procurement Protest

CHARLOTTE, N.C.--(BUSINESS WIRE)--The Babcock & Wilcox Company (B&W) (NYSE: BWC) is pleased that the Government Accountability Office (GAO) has sustained the protest filed by Nuclear Production Partners, LLC (NP²) in regard to the procurement decision for the combined management and operating contract at the Y-12 National Security Complex (Y-12) and Pantex Plant (Pantex). NP², comprised of B&W, URS, Northrop Grumman and Honeywell, believes its proposal was a very strong choice for moving closer to the National Nuclear Security Administration’s (NNSA) vision of a consolidated Nuclear Security Enterprise and for continuing the tradition of excellence B&W has maintained at both Y-12 and Pantex over the past 12 years.

“B&W and our Nuclear Production Partners team believe the GAO's decision supports our concerns about the initial award of this contract,” said E. James Ferland, President and Chief Executive Officer of B&W. “While we await a final decision on the path forward from NNSA, B&W remains focused on operating both sites safely and securely.”

As the lead M&O contractor at Y-12 and Pantex, B&W has made significant improvements in the operations and infrastructures at both locations since 2001, including meeting or exceeding production goals and modernizing the infrastructure.

• At Y-12, more than 1.3 million square feet of aging facilities were demolished and construction of the Highly Enriched Uranium Materials Facility completed.
• At Pantex, more than 1 million square feet of roofing was replaced and five new facilities constructed to replace 71,000 square feet of aging infrastructure.
• In 2011, the B53 dismantlement program at Pantex was completed 12 months ahead of schedule while employees also achieved the best safety performance in the plant’s history.
• Both sites have earned Voluntary Protection Program status, a significant health and safety validation.

About B&W
Headquartered in Charlotte, N.C., The Babcock & Wilcox Company is a leader in clean energy technology and services, primarily for the nuclear, fossil and renewable power markets, as well as a premier advanced technology and mission critical defense contractor. B&W has locations worldwide and employs approximately 14,000 people, in addition to approximately 10,400 joint venture employees. Learn more at www.babcock.com.