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Updates from the SRSCRO
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April 2018
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Follow us on Twitter!
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Rick McLeod @atomicasset
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Mindy Mets @nuclearstem
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FY 2019 DOE Budget Request & Testimony
Back in February, the Department of Energy (DOE) released its Fact Sheet on the FY2019 budget request (click
here for link). President Trump's budget for FY2019 requests $30.6B for DOE to advance U.S. national security and economic growth through transformative science and technology innovation that promotes affordable and reliable energy through market solutions and meets the nation's nuclear security and environmental cleanup challenges.
Energy Secretary Rick Perry, DOE Under Secretary for Science Paul Dabbar, and National Nuclear Security Administration (NNSA) Administrator Lisa Gordon-Hagerty testified before the Senate Energy-Water Appropriations Subcommittee on April 11, 2018 in support of the proposed budget. Perry appeared on his own before the House Energy and Commerce Committee on April 12, 2018.
As noted in the fact sheet, the DOE budget proposal for the fiscal year beginning Oct. 1, 2018, amounts to $30.6 billion overall, a 1.7 percent increase over the FY2017 level. However, it's $3.9 billion less than an omnibus appropriations bill Congress passed in March for FY2018.
For Perry's part, the proposal also emphasizes one of his priorities: supercomputing. The advancement of the next generation technology, he says, will provide massive improvements over previous efforts and aid national security and science and innovation. The budget plan also aims to bolster national security by providing $15.1 billion for the NNSA, $2.2 billion above the FY2017 enacted level.
On the controversial side, the budget includes $120 million, including $30 million in defense funds, to resume licensing for the nuclear waste repository at Yucca Mountain and implement a robust interim storage program. The budget devotes $110 million for DOE to support the Nuclear Regulatory Commission (NRC) licensing proceeding for the nuclear waste repository at Yucca Mountain, including funding for technical, scientific, legal and other support. In addition, the budget includes $10 million to implement a robust interim storage program to ensure earlier acceptance of spent nuclear fuel and accelerate removal from sites in 39 states across the country.
In his testimony, Perry said, "Interim storage capability also adds flexibility to the system that will move materials from sites across the country to its ultimate disposition. By restarting the long-stalled licensing process for Yucca Mountain and committing to establishing interim storage capability for near-term acceptance of spent nuclear fuel, our budget demonstrates the administration's commitment to nuclear waste management and will help accelerate fulfillment of the federal government's obligations to address nuclear waste, enhance national security, and reduce future burdens on taxpayers. This also will increase public confidence in the safety and security of nuclear energy, thus helping nuclear energy to remain a significant contributor to the country's energy needs for generations to come."
The budget also includes $6.6 billion for Environmental Management (EM), $182 million above the FY2017 enacted level, to address its responsibilities for the cleanup and disposition of excess facilities, radioactive waste, spent nuclear fuel, and other materials resulting from five decades of nuclear weapons development and production and Government-sponsored nuclear energy research.
For Savannah River Site (SRS), the budget provides $1.7 billion. This will include the Liquid Tank Waste Management Program, completing commissioning and beginning operation of the Salt Waste Processing Facility, continued construction of the Saltstone Disposal Unit #7, a start to construction of the Saltstone Disposal Units #8/9, and support for facilities that receive and store nuclear materials. The budget for Weapons Activities also increases investments to modernize the nuclear infrastructure. For example, $27 million for a Tritium Production Capability at SRS.
Also, the administration continues to propose the termination activities for the Mixed Oxide (MOX) Fuel Fabrication Facility project and continuing to pursue the dilute and dispose option to fulfill the United States' commitment to dispose of 34 metric tons of plutonium. The $220 million in the budget for the MOX Facility will be used to continue terminating the project and to achieve an orderly and safe closure. It is expected that the scope and costs will be refined in subsequent budget requests when the termination plan for the MOX project is approved. The request also includes $59 million for the Surplus Plutonium Disposition project to support the dilute and dispose strategy.
Congress returned from its spring recess with a host of issues to address, one of those is the FY2019 appropriations bills. Appropriators will continue to hold hearings on the administration's agency budget requests to gather information as they begin drafting appropriations bills. The deadline to pass the 12 identical bills (or an omnibus) through both chambers and have them signed into law is September 30, 2018. If more time is needed Congress, would need to pass another continuing resolution to avoid a 2019 shutdown.
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SRS Contract Re-bids
At the end of March, Department of Energy (DOE) announced plans to extend the Savannah River Remediation (SRR) liquid waste contract for up to another 10 months, to the end of March 2019 or earlier. The contractor's current contract lasts until May 31, under a five-month extension issued in December. This new extension will enable SRR to continue critical requirements for treatment and disposal of liquid waste at the site while DOE supports the Government Accountability Office (GAO) protest process.
The GAO upheld one of two protests in February over the $4.7 billion contract issued in October 2017 to Savannah River EcoManagement, a partnership of BWX Technologies, Bechtel National, and Honeywell. In sustaining the protest from a team comprised of AECOM and CH2M, the GAO said DOE failed to adequately verify the winning technical approach for liquid waste processing.
DOE officials met with representatives of those two teams and the third bidder, a Fluor-Westinghouse venture, to discuss a "Revised Final Proposal Revision" to their earlier contract bids and to begin the review process again. DOE could conceivably award the contract to any of the three original bidders after receiving additional information. As a result, the current contract with SRR has been extended for up to 10 months, but may end sooner if the acquisition process is completed earlier. Now, DOE is back at square one - reevaluating all the submissions for the Liquid Waste Contract, as suggested by the GAO.
In addition, the existing Savannah River Site (SRS) M&O contract with Savannah River Nuclear Solutions (SRNS) will likely be extended by one year through July 31, 2019. SRNS has managed the nuclear weapons complex since 2008. SRNS is a partnership of Fluor, Honeywell, and Stoller Newport News Nuclear that holds the $9.5 billion current contract. The M&O draft RFP will be released when approval is granted from DOE HQ, which is expected soon, possibly in May.
Furthermore, DOE is seeking a contractor to provide Paramilitary Security Services for SRS. This contract is worth anywhere from $1 billion to $3 billion and the contractor would have to implement a safeguards and security program to meet requirements for DOE, EM, and the NNSA. The current SRS Paramilitary Security Services contract held by Centerra-SRS expires during October 2019. The paramilitary contract draft Request for Proposal (RFP) will be released upon approval from DOE HQ. This draft RFP should remain on its current schedule, which is tracking toward a June or July date.
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The New Collar Economy
As technology continues to evolve, industries like manufacturing and cybersecurity are experiencing the need to have an adaptable workforce. But these sectors are not alone. For example, healthcare workers, teachers and construction workers are increasingly required to use basic digital tools. The reality is that nearly every job will involve some level of STEM (science, technology, engineering and math) skills in the years to come.
These workforce changes signify a shift toward the "new collar" economy - where technology advances may eliminate some jobs and simultaneously create new ones. To learn how communities across the nation are adjusting to this workforce trend, representatives from the SRS Community Reuse Organization attended the U.S. News & World Report's STEM Solutions: Workforce of Tomorrow conference in Washington D.C. One theme was reiterated throughout the meetings - new partnerships between educators and employers are essential to prepare the workforce of tomorrow.
"Half of what we pay Americans to do could be automated," Susan Lund, a partner at McKinsey & Company and frequent adviser to Fortune 500 companies, said during the opening conference session.
"That's the bad news," she said. "The good news is very little jobs will likely be taken entirely by artificial intelligence. For most people, what we'll see in the next five to 10 years is that your jobs will change."
The facts cannot be ignored. "More than half of the top 10 most in demand jobs in 2017 didn't exist in 2007," said Dr. Gregory Washington, Dean of Engineering at the University of California-Irvine.
Corporations are taking on a new role in education. "Corporations are now saying, we need to lead with partners and educators to solve this problem. Otherwise we're not going to have the people WE need to be successful," Susan Lund commented.
STEM skills are in demand, but personal interactions matter also. "Hard skills will get you in the door, but soft skills will keep you there," said Dr. Carol O'Donnell, Director of the Smithsonian Science Education Center.
Audience members were cautioned by Dr. Nicole Smith, Research Professor and Chief Economist for the Center on Education and the Workforce at Georgetown University. She told attendees to consider certificates and degrees with an understanding that the specific jobs of the new economy are still mostly unknown, and what's most important is to prepare people with skills that will allow them to adapt.
The change is real. Consider that it has been a decade since Apple, Inc. first created the smartphone application store. By 2015, 1.6 million jobs had been created in the app sector with employment growing rapidly.
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IRS and Taxes
Fun Facts
1. The US government has not always levied an income tax. Taxes have been around for so long that many people think they've always existed, but the U.S. government only began collecting income tax in the mid-1800s.
2. Donald Duck was once used as a mascot for the income tax system. In the 1940s, the income tax system was expanded to include all American citizens. Since taxes were originally levied on the rich alone, many middle class and lower class citizens were resistant and didn't file their taxes. To encourage support for the new expanded tax, the U.S. government requested that the Walt Disney company create two cartoons that showcased the income tax system in a favorable light. Both cartoons starred Donald Duck.
3. Taxpayers can choose from nearly 500 income tax forms and schedules.
4. Citizens have given over $1 billion to the Presidential Election Fund, partly via their income tax forms.
5. The IRS receives more than 130 million tax returns every year.
6. The IRS requires you to declare sources of illegal income (i.e selling drugs) but they can't prosecute you for the activity.
7. Willie Nelson released an album in 1992 specifically made to pay off his debts to the IRS, entitled 'The IRS Tapes: Who'll Buy My Memories?
8. When Willie Nelson's assets were auctioned by the IRS, fans bought the items and gave them back to Willie.
9. The IRS ranks higher than Comcast in terms of customer satisfaction.
10. Medals won by US Olympians are considered earned income and therefore subjected to an IRS taxation - up to 39%.
11. The IRS had to use a special computer to process Bill Gates' taxes because "their normal computers can't deal with the numbers."
12. If you accept a bribe, the IRS requires you include it in your income when you file your taxes.
13. According to IRS rules, hair donations to organizations like Locks of Love are not tax deductible.
14. The "Sovereign Citizen" movement - where people claim they are not answerable to any court in the US - is so common that the IRS can fine you up to $5000 for trying to use that argument in court.
15. In 2011, the IRS sent $46,378,040 in refunds to 23,994 different people at the same address in Atlanta, Ga. They also sent 11,284 refunds worth a combined $2,164,976 to another Atlanta address that very same year.
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Spotlight
ETEBA
ETEBA is excited to be bringing back the Aiken, SC Federal Business Opportunities Forum on April 25, 2018. The 1-Day Federal Business Opportunities Forum will focus on upcoming procurement opportunities within the Department of Energy (DOE) Complex and with the US Army Corps of Engineers (USACE) in the South Atlantic Division. Over the course of the day, Forum participants will hear from senior management and procurement personnel from the Savannah River Site and elsewhere in the DOE complex including updates on procurement opportunities and forecasts at both the prime and subcontracting levels. The event includes an afternoon reception for Forum participants to meet directly with procurement representatives to learn more about doing business with these agencies. Click
here to learn more.
The Energy Technology and Environmental Business Association (ETEBA) is a non-profit trade association representing approximately 170 small, large and mid-sized companies and affiliate members that provide environmental, technology, energy, engineering, construction and related services to government and commercial clients.
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Closing Thoughts
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"A poem is never finished, only abandoned." --
Paul Valery
"Most people ignore most poetry / because / most poetry ignores most people."
-- Adrian Mitchell
"Every person takes the limits of their own field of vision for the limits of the world."
-- Arthur Schopenhauer
"A lot of people mistake a short memory for a clear conscience." -- Doug Larson
"My Grandmother is over eighty and still doesn't need glasses. Drinks right out of the bottle." -- Henny Youngman
"She got her looks from her father. He's a plastic surgeon." -- Groucho Marx
"If your parents never had children, chances are you won't, either." -- Dick Cavett
"The wages of sin are death, but by the time taxes are taken out, it's just sort of a tired feeling." -- Paula Poundstone
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Contact Information
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SRSCRO, PO Box 696, Aiken, SC 29802
Staff:
Rick McLeod - President/CEO - 803-508-7402
Mindy Mets - NWI® Program Manager - 803-508-7403
Amy Merry - Administrative & Business Manager - 803-508-7401
Kim Saxon - Assistant Coordinator - 803-508-7656
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