New management firm Y-12 kicks off in December under $ 2.8 billion deal


Y-12 National Security Complex and its 6,200 employees will be under new management starting next month.

The Department of Energy has awarded a contract valued at $ 2.8 billion to Nuclear Production One LLC to manage and operate the Oak Ridge facility and the Pantex plant, located in Amarillo, Texas.

Many Y-12 employees will have the option of keeping their jobs at the same pay, according to the Department of Energy.

The Nuclear Production One contract begins in December. Consolidated Nuclear Security will continue to operate Y-12, a nuclear weapons materials manufacturing and storage site, until its contract expires at the end of March.

The four-month transition period is aimed at minimizing the impact on workers, the Department of Energy’s office of the National Nuclear Security Administration, which awarded the contract, said in a press release.

Nuclear Production One’s contract is for a minimum period of five years with five one-year extension options.

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The University of Tennessee System and the Texas A&M University System also submitted a bid to jointly manage and operate the facilities.

The new contract requires Nuclear Production One to offer positions to all current employees “it deems necessary to fulfill the requirements of the contract,” with the exception of certain senior executives, according to a press release from the DOE.

Nuclear Production One must offer the same pay to employees who remain in their current positions, according to a press release, and must sponsor existing pension plans and allow employees to remain in those plans.

Nuclear Production One is an LLC formed in 2020 by Texas-based nuclear cleaning company Fluor Federal Services Inc. and construction management company AECOM Energy & Construction, an Amentum company, based in California.

The National Nuclear Security Administration announced in June 2020 that it would not extend the Consolidated Nuclear Security contract, which it had held since 2014.

Consolidated Nuclear Security will continue to directly employ over 1,400 people on the Uranium Processing Facility construction project, which it will continue to manage after the transition from Y-12.

The Department of Energy has indicated that it is looking for a new manager to improve the organizational culture.

Y-12 was built as part of the Manhattan Project, and the facility maintains U.S. nuclear stockpiles, secures nuclear materials, and supplies enriched uranium to the U.S. Navy.

Business Growth and Development Editor-in-Chief Brenna McDermott can be reached at [email protected] Follow his work on Twitter @_BrennaMcD. Support our local information efforts by become a Knox News subscriber.

This article originally appeared on Knoxville News Sentinel: Oak Ridge National Security Complex Y-12 Gets New Management Company


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