BWX Technologies Inc

BWX Technologies Inc (formerly known as Babcock & Wilcox) (United States) manages and operates several US nuclear weapons facilities including the Lawrence Livermore National Laboratory, Los Alamos National Laboratory, and Nevada National Security Site (NNSS), previously known as the Nevada Test Site, each of which are engaged in various aspects of nuclear warhead modernisation.

Company profile

BWX Technologies Inc (formerly known as Babcock & Wilcox Company), based in the United States, provides energy technology and services primarily for the nuclear, fossil fuel and renewable power markets worldwide.

Contact Information

Website:  http://www.bwxt.com/
Twitter:@BWXTech
Facebook: https://www.facebook.com/BWX-Technologies-Inc

BWX Technologies Inc
800 Main Street
Lynchburg, VA 24504
Telephone: +1 434.522.3800

Nuclear weapons

BWXTech offers various services, including uranium processing, environmental site restoration and operating services, for a number of government-owned facilities, primarily within the US nuclear weapons complex. 1

The Lawrence Livermore (LLNL) and Los Alamos National Laboratories (LANL) are jointly managed by BWXTech, University of California, Bechtel and URS Corporation (since October 2014 part of AECOM). The Livermore partnership also includes Battelle 2 and Texas A&M University. 3 LLNL and LANL play an important role in the research, design, development and production of nuclear weapons. 4

The LANL contract, awarded in 2006, has a total value of US$14 billion (€ 10 billion). 5 Despite substandard performance in recent years, the consortium managing the LANL was granted a waiver extending the contract through 2018. This was subsequently revoked and reduced to 2017. However, the Department of Energy cut the fees in recent years, by 90% in 2014 alone, citing a “significant or ‘First Degree’ performance failure of the contractor.” Despite the waiver, the contractor could ultimately still end up losing the contract due to poor performance. 6 The performance is evaluated on a yearly basis. 7

The contract for LLNL was awarded in 2007 and currently runs through September 2019. 8 The maximum possible fee to be collected under the contract is US$ 45.5 million (€ 37.6 million) a year. 9 As at LANL, the National Nuclear Security Administration was criticised for renewing lucrative deals at LLNL despite poor performance of the contractors. 10

BWXTech, with Aecom, CH2M Hill and Northrop Grumman, is also a joint venture partner in National Security Technologies (NSTec) which manages the Nevada National Security Site (NNSS), previously known as the Nevada Test Site, under a contract with a value of US$ 3.1 billion (€ 2.3 billion). 11 The exact ownership distribution is not known. This contract includes operation and maintenance of over 500 facilities and laboratories as well as the associated infrastructure, vehicles, and IT/communications. 12 The NNSS is the only US nuclear test site where subcritical tests are still taking place, and is a critical facility for the modernisation of the US nuclear arsenal. The most recent subcritical test was the Pollux test in December 2012. 13 In the financial year 2014 to 2016, the National Nuclear Security Administration (NNSA) is planning the Lyra-series of three scaled-integral implosion experiments; these include Vega, a subcritical experiment in the NNSS complex using a plutonium pit. 14

Investors

 

Investors

The following financial institutions have made approximately USD 2,208 million available to this producer since January 2012.

  • Banco Bilbao Vizcaya Argentaria (BBVA) (Spain)
  • Bank of America (United States)
  • BB&T (United States)
  • BlackRock (United States)
  • BNP Paribas (France)
  • Citizens Bank & Trust (United States)
  • Comerica (United States)
  • Crédit Agricole (France)
  • Fifth Third Bancorp (United States)

  • Hancock Holding (United States)
  • JPMorgan Chase (United States)
  • KeyCorp (United States)
  • Mitsubishi UFJ Financial (Japan)
  • Northern Trust (United States)
  • PNC Financial Services (United States)
  • Regions Financial (United States)

  • Royal Bank of Scotland (United Kingdom)
  • Scotiabank (Canada)
  • Sumitomo Mitsui Financial (Japan)
  • Toronto-Dominion Bank (Canada)
  • US Bancorp (United States)
  • Wells Fargo (United States)

Notes

This page was last updated on 14 March 2016.
  1.         Babcock & Wilcox, “Annual Report 2013”, Babcock & Wilcox, 26 February 2014 and Babcock & Wilcox, “Nuclear Operations Management”, Website Babcock & Wilcox (www.babcock.com/about/Pages/Babcock-Wilcox-Nuclear-Operations-Group.aspx), viewed May 2015.
  2. Battelle is a U.S. based 501(c)(3) charitable trust. In examining their tax records, they appear to have reported only government income and no external or private financing.
  3.             Babcock & Wilcox, “Lawrence Livermore National Laboratory (LLNL)”, Website Babcock & Wilcox (www.babcock.com/about/Pages/Lawrence-Livermore-National-Laboratory-(LLNL).aspx), viewed May 2015;
    Babcock & Wilcox, “Los Alamos National Laboratory (LANL)”, Website Babcock & Wilcox (www.babcock.com/about/Pages/Los-Alamos-National-Laboratory-(LANL).aspx), viewed May 2015;
    National Nuclear Security Administration, “Our locations”, Website National Nuclear Security Administration (/nnsa.energy.gov/aboutus/ourlocations), viewed May 2015;
    Union of Concerned Scientists, “Lawrence Livermore National Laboratory”, Union of Concerned Scientists, November 2012 (www.ucsusa.org/assets/documents/nwgs/nuclear-weapons-complex/livermore-fact-sheet.pdf);
    Mello, G., “The US nuclear weapons complex: Pushing for a new production capability”, The Bulletin, 20 March 2008 (thebulletin.org/us-nuclear-weapons-complex-pushing-new-production-capability), viewed May 2015;
    Bechtel, “US National Laboratories”, Website Bechtel (www.bechtel.com/u.s._national_laboratories.html), viewed May 2015.
  4.            Union of Concerned Scientists, “Lawrence Livermore National Laboratory”, Union of Concerned Scientists, November 2012 (www.ucsusa.org/assets/documents/nwgs/nuclear-weapons-complex/livermore-fact-sheet.pdf);
    National Nuclear Security Administration (NNSA), “Lawrence Livermore National Laboratory (LLNL): Nuclear design and engingeering and high explosive research & development (R&D)”, Website NNSA (nnsa.energy.gov/sites/default/files/nnsa/inlinefiles/LivermoreFactSheet.pdf), viewed June 2015;
    Los Alamos National Laboratory, “National Security, Weapons Science”, Website Los Alamos National Laboratory (www.lanl.gov/science-innovation/capabilities/national-security-weapons-science/index.php), viewed June 2015.
  5.    URS, “Los Alamos National Laboraroty”, Website URS (www.urscorp.com/Projects/projView.php?s=803&sec=31&pn=3), viewed May 2015.
  6.             NNSA Los Alamos Site Office, “Amendment of solicitation/Modification of contract – Contract No. DE-AC52-06NA25396, Modification No. 264”, Department of Energy, 16 April 2014 (nnsa.energy.gov/sites/default/files/nnsa/05-14-inlinefiles/2014-05-21%20LANS-LANL%20Mod0264(4.17.14).pdf);
    NNSA Los Alamos Site Office, “Contracting Officer’s Notice of Reduction of LANS FY 2014 Fixed Fee and Forfeiture of Previously Earned Award Term”, Department of Energy, 18 December 2014 (nnsa.energy.gov/sites/default/files/Contracting%20Officer%20Notice%20of%20Reduction%20of%20LANS%20FY14%20Fixed%20Fee%20and%20Incentive%20Fee_Redacted.pdf);
    Project on Government Oversight, “Nuclear Contractor’s Award Fee Slashed by 90 Percent”, Website Project on Government Oversight, 6 January 2015 (www.pogo.org/blog/2015/01/nuclear-contractors-award-fee-slashed.html?referrer=https://www.google.com/);
    Oswald, M., “Feds slash management fee for LANL contractor”, Website Alberquerque Journal, 30 December 2014 (www.abqjournal.com/518894/news/feds-slash-fees-for-lanl-contractor-by-90.html);
    Gerew, G, “Los Alamos management gets contract extension despite low score”, Website Bizjournals, 17 January 2013 (www.bizjournals.com/albuquerque/blog/morning-edition/2013/01/los-alamos-management-gets-extension.html).
  7.          NNSA, “Los Alamos National Lab Performance Evaluations”, Website NNSA (nnsa.energy.gov/aboutus/ouroperations/apm/perfevals/lanlperfevals), viewed June 2015.
  8.          Lawrence Livermore National Security, “LLNS, LLC Prime Contract Documents”, Website Lawrence Livermore National Security (www.llnsllc.com/contract/contract.asp), viewed May 2015.
  9.   Inside the Pentagon, “University of California, Bechtel Consortium wins Livermore Contract”, Inside Defense, 10 May 2007.
  10.          Global Security Newswire, “NNSA Defends Contract Extensions but Congressional Scrutiny Expected”, Website NTI, 12 March 2013 (www.nti.org/gsn/article/nnsa-defends-contract-extensions-congressional-scrutiny-expected/).
  11.             National Security Technologies, “NSTec, Who we are…”, Website National Security Technologies (www2.nstec.com/Pages/About.aspx), viewed May 2015;
    Babcock & Wilcox Company, “Annual Report 2013”, Babcock & Wilcox Company, February 2014;
    Aecom, “Nevada National Security Site”, Website Aecom (www.aecom.com/What+We+Do/Government/_carousel/Nevada+National+Security+Site), viewed May 2015.
  12.             AECOM, “Annual Report 2014”, AECOM, November 2014.
  13.     Nevada Site Office, “NNSA Conducts Pollux Subcritical Experiment at Nevada National Security Site”, Website Nevada Site Office, 6 December 2012 (nnsa.energy.gov/mediaroom/pressreleases/pollux120612);
    Licherman, A., “Issue Update – Subcritical tests”, Western States Legal Foundation, 2012 (www.wslfweb.org/docs/WSLF%20Issue%20Update–Subcritical%20Tests%20Fall%202012.pdf).
  14.      Office of Research, Development, Test and Evaluation, “Stockpile Stewardship Quarterly”, National Nuclear Security Administration (NNSA), March 2015 (www.nnsa.energy.gov/sites/default/files/2015-03%20SSQ%20V5%20N1.pdf);
    Furlanetto, M.R., “Stockpile Stewardship through Subcritical Experiments”, Los Alamos National Laboratory, 19 February 2014 (www.orau.gov/ssap2014/presentations/furlanetto_m.pdf).

Producers

In some nuclear-armed states – in particular the United States, the United Kingdom and France – private companies are hired by governments to carry out work on maintaining and modernising nuclear arsenals. This report looks at companies that are providing the necessary components to develop, test, maintain and modernise nuclear weapons.The contracts these companies have with nuclear armed countries are for materials and services to keep nuclear weapons in their arsenals. The companies described are substantially involved in the nuclear weapons programmes of the United States, the United Kingdom, France, or India and are themselves based in France, India, Italy, the Netherlands, the United Kingdom and the United States.

In other nuclear-armed countries –Russia, China, Pakistan and North Korea – the maintenance and modernization of nuclear forces is carried out primarily or exclusively by government agencies.

Methodology

The nuclear weapon producers identified were selected on the basis of a predetermined set of criteria.
– Information on investments is publicly available.
– The company is directly involved in the development, testing, production, maintenance or trade of nuclear weapons related technology, parts, products or services.
– The company’s involvement is related to warheads, or to delivery systems such as missiles, that are specifically developed for nuclear tasks. This includes technology that is designed for ‘dual use’ (military and civilian) but excludes technology that is not designed for, but can be used in nuclear warfare. It does not include delivery platforms such as bombers and submarines.

State owned or controlled nuclear industries are outside the scope of this research, as are companies not publicly listed. Our research uncovered a number of Universities involved in nuclear weapons programmes, but these are also outside the scope of the report.

The list of nuclear weapon producers investigated was compiled through a wide variety of sources, including financial institution exclusion lists, civil society reports, media reports, etc. Additional details on the contracts and components can be found in the Annex. We welcome information at any time about possible nuclear weapons producing companies to investigate.