BWXT-led Team Awarded $45 Billion Environmental Management Contract for DOE’s Hanford Site

Rhea-AI Summary

BWX Technologies has secured a landmark contract with the U.S. Department of Energy valued at up to $45 billion over 10 years for environmental management operations at the Hanford Site in Washington. This contract, known as the Hanford Integrated Tank Disposition Contract (ITDC), is deemed the largest single contract award in the company's history. It involves a joint venture that includes BWXT and other companies, focusing on the complex task of radioactive waste cleanup. The award highlights BWXT's commitment to environmental stewardship and efficient operations. The scope of work includes managing tank farm facilities and other critical services. However, the company has cautioned that performance and future revenues depend on various risks and uncertainties, urging stakeholders not to rely solely on the contract value as an indicator of future results.

Positive

• Award of a contract worth up to $45 billion from the U.S. Department of Energy over a 10-year period.
• Largest single contract in the company's history, enhancing BWXT's leadership in environmental restoration.
• Joint venture includes reputable partners, potentially strengthening operational capability.

Negative

• Future revenues from the contract are uncertain and subject to risks including modification or termination.
• Caution against relying on contract value as a definitive indicator of future performance.

LYNCHBURG, Va.--(BUSINESS WIRE)-- BWX Technologies, Inc. (NYSE: BWXT) today announced a contract with an estimated value of up to $45 billion over a 10-year ordering period from the U.S. Department of Energy (DOE) for environmental management operations at the Hanford Site in Washington.

The DOE announced that the Hanford Integrated Tank Disposition Contract (ITDC) was awarded to Hanford Tank Waste Operations & Closure, LLC (H2C), which is a joint venture led by a BWXT subsidiary and includes subsidiaries of Amentum and Fluor.

“This is the largest single contract award in our company’s history and is a stair-step achievement as we strengthen our leadership position in environmental restoration at highly technical projects across the nation,” said Rex Geveden, BWXT’s president and chief executive officer. “Our company remains highly committed to this critical mission for the U.S. Department of Energy and our emphasis on environmental stewardship and sustainability more broadly going forward.”

“Our team is honored to take on the largest and most complex radioactive waste cleanup project in the United States,” said Heatherly Dukes, president of BWXT’s Technical Services Group. “We are committed to working with our DOE Environmental Management customer, regulatory authorities and the Tri-Cities community in safely reducing the environmental liabilities at the site in an efficient and effective manner that is protective of the workforce, the public and the environment.”

The scope of the ITDC includes operation of Hanford tank farm facilities, eventual operation of the Waste Treatment and Immobilization Plant, and responsibility for other core functions such as project management, security and emergency services, business performance, and environment, safety, health and quality.

The DOE is engaged in one of the great public works projects of this century at the Hanford Site near Richland, Washington. Responsible for the federal government’s cleanup of the legacy of more than 40 years of producing plutonium through the 1980s, DOE is transforming the site back into an operations mode to treat tank waste from the production era. More information is available from the DOE’s Office of Environmental Management.

Forward Looking Statements

BWXT cautions that this release contains forward-looking statements, including statements relating to the performance, timing, impact and value, to the extent contract value can be viewed as an indicator of future revenues, of the ITDC, future work at the Hanford site, or the award or exercise of any contract options or orders. These forward-looking statements involve a number of risks and uncertainties, including, among other things, modification or termination of the ITDC. If one or more of these or other risks materialize, actual results may vary materially from those expressed. For a more complete discussion of these and other risk factors, please see BWXT’s annual report on Form 10-K for the year ended December 31, 2022 and subsequent quarterly reports on Form 10-Q filed with the Securities and Exchange Commission. BWXT cautions not to place undue reliance on these forward-looking statements, which speak only as of the date of this release, and undertakes no obligation to update or revise any forward-looking statement, except to the extent required by applicable law.

About BWXT

At BWX Technologies, Inc. (NYSE: BWXT), we are People Strong, Innovation Driven. Headquartered in Lynchburg, Virginia, BWXT is a Fortune 1000 and Defense News Top 100 manufacturing and engineering innovator that provides safe and effective nuclear solutions for global security, clean energy, environmental remediation, nuclear medicine and space exploration. With approximately 7,000 employees, BWXT has 14 major operating sites in the U.S., Canada and the U.K. In addition, BWXT joint ventures provide management and operations at a dozen U.S. Department of Energy and NASA facilities. Follow us on Twitter at @BWXT and learn more at www.bwxt.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230417005637/en/

Media Contact

Jud Simmons

Senior Director, Media & Public Relations

434.522.6462 hjsimmons@bwxt.com

Investor Contact

Chase Jacobson

Vice President, Investor Relations

980.365.4300 investors@bwxt.com

Source: BWX Technologies, Inc.

FAQ

What is the value of the contract awarded to BWXT by the U.S. Department of Energy?

The contract is valued at up to $45 billion over a 10-year ordering period.

What is the Hanford Integrated Tank Disposition Contract (ITDC)?

The ITDC is a contract awarded for environmental management operations at the Hanford Site in Washington.

How does this contract impact BWXT's position in the market?

This contract strengthens BWXT's leadership position in environmental restoration projects.

What are some risks associated with the contract awarded to BWXT?

The contract's future revenues are uncertain and could be modified or terminated.

Who are the partners involved in the Hanford ITDC joint venture?

The joint venture includes BWXT subsidiaries and other companies like Amentum and Fluor.