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FY 2011 Babcock & Wilcox Technical Services Y-12, LLC, PER Summary


Total Available Fee

Total Fee Earned






B&W Y-12, the management and operating contractor for the Y-12 National Security Complex, earned an “Excellent” rating and 92.3 percent of the possible incentive fee from the National Nuclear Security Administration for its fiscal year 2011 performance.

Among B&W Y-12’s successes:

  • W76-1 production exceeded baseline requirements by 5 percent with improved acceptance rates and 15 percent unit cost reduction; 400 percent more surveillance work was done in FY11 than FY10, and $4M in efficiencies were achieved; and dismantlements exceeded baseline requirements with completion of the W70 system and the initiation of work on the B53 and B83 large systems;
  • Two nuclear storage locations were de-inventoried and all strategic reserve assemblies moved to HEUMF;
  • More than seven metric tons of excess HEU were removed from Y‑12 and shipped to NNSA down-blending contractors, Naval Reactors fuel fabricators and disposal of legacy and low-equity HEU materials;
  • Strong execution of UPF design was achieved (maturity at more than 60 percent) and Critical Decision (CD) 2/3A package was issued;
  • Productivity Improvement results were outstanding: $71.8M in cost savings/avoidance against $40M goal;
  • Outstanding work was done in implementing Physical Security and Personnel Security NNSA (Cyber) Security Policy, with confirmed cost avoidances/efficiencies at $8.39M

Among areas for improvement cited by NNSA:

  • Formality of operations; field implementation of nuclear criticality safety requirements; and implementation of the quality (NQA-1) procurement program; calibration program implementation; and lock-out/tag-out implementation can be improved.



For a copy of the full Performance Evaluation Report (PER), please contact NNSA Public Affairs.