Firm Chosen To Upgrade Hanford Areas

The U.S. Energy Department on Friday awarded a $160 million, 25-year contract to Johnson Controls Inc. to upgrade and manage energy systems at the Hanford Nuclear Reservation.

Under the contract, which the DOE expects to save it $108 million over the next 25 years, Johnson Controls will pay upfront all the costs of upgrading the energy systems in the 200 and 300 areas of the Hanford site. The contractor will be reimbursed those costs over the course of the contract.

Johnson Controls will receive an average of $555,657 each month based on its agreement to meet guaranteed energy cost savings to the government.

Under the contract, Johnson Controls also has options to propose new ways of saving the government money and receive a negotiated percentage of the savings.