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Home · Markets · Nuclear · Profiling Innovation

Management and Contracting

CH2M HILL has applied innovative approaches for prime and subcontractor contracting and project and workforce management.

Prime Contracting

As the U.S. Department of Energy's (DOE's) mission changed at many sites from production to environmental management activities, CH2M HILL pioneered a performance-based fee approach that determines our fee based on objective project performance measures, such as cost and schedule variances, using a DOE-approved earned value management system. This contracting method shares cost risk equitably between the buyer and contractor, and allows the DOE to chart performance against milestones.

Subcontractor and Supply-chain Contracts

At one closure site, CH2M HILL developed specific supply chain innovations to reduce costs and improve performance schedules. By negotiating a cap on the mark-up charged for staff augmentation subcontractors across the board on over 70 subcontracts, we saved more than $50 million. By simplifying the requirements on more than a dozen procurement specifications for waste containers, we reduced costs and improved lead times.

CH2M HILL consolidated the procurement process for more than 20 subcontractors, streamlined and improved compliance, and generated savings through volume purchasing. Our innovative agreements on site-specific commodities, like waste containers, personal protective equipment, and hand tools, have compensation structures that have been applied at other sites and projects.

Project Management

At the Miamisburg Closure Project, a $13 million funding shortfall curtailed low level radioactive waste loading and shipping and, as soon as the existing waste pit reached capacity, facility demolition and remediation activities would have to stop. CH2M HILL decided to expand the capacity of the staging pit to avoid a 6-month project delay. The expansion included design, regulatory interface, construction, and start-up and was accomplished while existing pit operations continued.

Workforce Management

For employees of soon-to-be-closed sites,
CH2M HILL implemented an innovative approach to re-skill, incentivize, and transition the workforce. By successfully negotiating with all site unions, CH2M HILL was able to conduct work across jurisdictions, reclassify job categories, and retrain operations and craft workers.

As allowable costs under contract at several sites, CH2M HILL established an innovative monetary employee incentive program that shares a significant portion of our fee with the employees to recognize and motivate their performance in meeting near- and long-term objectives.

Putting Innovation to Work

At Rocky Flats, CH2M HILL negotiated a Collective Bargaining Agreement with the United Steelworkers of America tied to the schedule. If the project was completed on-time in 2006, each union member would receive a predefined bonus for each year worked. If the project finished a year early (2005), each union member would receive twice as much. If the closure was completed behind schedule, they would receive nothing. Thanks to the efforts of the workforce, the project finished in October 2005, more than a year ahead of schedule.