Federal Contractor Misconduct Database (FCMD)
Reduction of FY2014 Fixed Fee and Forfeiture of Previously Earned Award Term
The National Nuclear Security Administration (NNSA) determined that Los Alamos National Security’s (LANS) performance failures associated with the radiological incident at the Waste Isolation Pilot Plant (WIPP) in February 2014 (see Los Alamos National Security instance, “Hazardous Waste Violations at LANL”) constituted a significant or “First Degree” performance failure with respect to the terms of its contract. Specifically, NNSA found that the performance failures created damage to Department of Energy property or costs for cleaning, decontaminating, renovating, replacing, or rehabilitating property that in aggregate exceeded $2.5 million. As a result, NNSA reduced LANS’s fiscal year 2014 fixed fee by $17.1 million and its incentive fee by $18.2 million and withdrew one award term extension previously earned. LANS was awarded only $6.25 million of $63 million in potential award fees.
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