FPR Project CP-4B/7B Nuclear Reprocessing Plant

Idaho National Engineering Laboratory

Owner: Department of Energy

Client Name: Arrington Construction Company, Inc..

Engagement Scope

The Sutor Group was engaged by Arrington Construction Company, Inc. to evaluate and establish the guidelines to be followed in determining the settlement proposal for a termination for convenience. We assisted Arrington and its major subcontractor in all aspects of the preparation and submittal of the settlement proposal including completion of appropriate forms and the preparation of detailed reports. Our work was performed in compliance with Arrington's Prime Subcontract with MK-Ferguson of Idaho Company and applicable sections of the Federal Acquisition Regulations.

Project description

Arrington was a "Prime Subcontractor" to MK-Ferguson of Idaho Company on the FPR Project located at the Idaho National Engineering Laboratory west of Idaho Falls, Idaho. The FPR Project was an approximately $350,000,000 job to construct a nuclear fuel reprocessing facility for the Department of Energy. The scope of Arrington's contract included installation of underground piping and other related work. The entire project was terminated for convenience on May 15, 1992. Arrington was approximately 54% complete with its contract as of the date of termination. Subsequently, portions of the Arrington contract were reinstated and completed.

Entitlement issues

Entitlement pursuant to Arrington's Prime Subcontract General Provisions (GP-62 Termination for Convenience).

Type of impacts

Determination of the value of terminated work including delay impacts. Determination of the methodology utilized for the settlement proposal based on the Prime Subcontract General Provisions.