Bechtel

Bechtel (United States) manages the Los Alamos and Lawrence Livermore national laboratories in the US, which play an important role in the research, design, development and production of nuclear weapons. It also leads the joint venture for management and operation of the Y-12 National Security Complex in Tennessee and the Pantex Plant in Texas.

Company profile

Bechtel Group, a private company based in the United States, operates as an engineering, construction and project management company. Its business units are civil infrastructure, communications, mining and metals, oil, gas and chemicals, power and US government services. 1

In the financial year 2014, Bechtel Group reported revenues of US$ 37.2 billion (€ 30.6 billion). Profits are not reported by the company. 2

Contact Information

Website: www.bechtel.com/
Twitter: @Bechtel
Facebook: www.facebook.com/bechtelcorp

Bechtel Corporate Headquarters
50 Beale Street
San Francisco, California 94105
USA
+1.415.768.1234

Nuclear weapons

Bechtel’s business unit US Government Services assists the US Department of Energy (DoE) in the areas of national security, scientific research and environmental clean-up. 3

The Lawrence Livermore (LLNL) and Los Alamos National Laboratories (LANL) are jointly managed by Babcock & Wilcox, University of California, Bechtel and URS Corporation (part of AECOM since October 2014). The Livermore partnership also includes Battelle 4 and Texas A&M University. 5 LLNL and LANL play an important role in the research, design, development and production of nuclear weapons. 6

The LANL contract, awarded in 2006, has a total value of US$14 billion (€ 10 billion). 7 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. 8

The contract for LLNL was awarded in 2007 and currently runs through September 2019. 9 The maximum possible fee to be collected under the contract is US$ 45.5 million (€ 37.6 million) a year. 10 Also for LLNL, the National Nuclear Security Administration was criticised for renewing lucrative deals despite poor performance of the contractors. 11

Until June 2014, Bechtel and Babcock & Wilcox jointly managed the Y-12 National Security Complex in Tennessee and the Pantex Plant in Texas. Since July 2014, the management and operation of the sites has been fully taken over under one contract by Consolidated Nuclear Security (CNS). CNS is a Bechtel-led joint venture including Lockheed Martin, Orbital ATK, SOC, and Booz Allen Hamilton 12 . 13 The US$ 446 million (€ 326.5 million) contract has a base-term of five years, with options for an additional five years. The contract includes design and construction of a Uranium Processing Facility (UPF) at the Y-12 National Security Complex and an option for Savannah River Tritium Operations at the Savannah River Site in South Carolina. 14

Investors

 

Investors

The following financial institutions have made approximately USD 10,475 million available to this producer since January 2012.

  • Bank of America (United States)
  • Barclays (United Kingdom)
  • BNP Paribas (France)
  • Citigroup (United States)
  • Crédit Agricole (France)
  • JPMorgan Chase (United States)
  • Lloyds Banking Group (United Kingdom)
  • Mitsubishi UFJ Financial (Japan)
  • Riyad Bank (Saudi Arabia)
  • Royal Bank of Scotland (United Kingdom)
  • Sumitomo Mitsui Financial (Japan)

Notes

This page was last updated 16 October 2015.
  1.          Bechtel Group, “About us”, Website Bechtel Group (www.bechtel.com/about-us/), viewed May 2015.
  2.         Bechtel Group, “Annual Report 2015”, Bechtel Group, April 2015.
  3.    Bechtel Group, “Nuclear, Security & Environmental”, Website Bechtel Group (www.bechtel.com/businesses/nuclear-security-environmental/), viewed June 2015.
  4. 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.
  5.             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.
  6.            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 engineering 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.
  7.    URS, “Los Alamos National Laboratory”, Website URS (www.urscorp.com/Projects/projView.php?s=803&sec=31&pn=3), viewed May 2015.
  8.       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).
    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).
  9.            Lawrence Livermore National Security, “LLNS, LLC Prime Contract Documents”, Website Lawrence Livermore National Security (www.llnsllc.com/contract/contract.asp), viewed May 2015.
  10.   Inside the Pentagon, “University of California, Bechtel Consortium wins Livermore Contract”, Inside Defense, 10 May 2007.
  11.       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/).
  12. Research indicated that SOC provides security services only, while Booz Allen Hamilton is a broad consulting firm who work is not integral to maintain the nuclear arsenal.
  13.           Consolidated Nuclear Resources, “The CNS team”, Website Consolidated Nuclear Resources (cns-llc.us/the-cns-team/), viewed May 2015.
  14.             Inside the Pentagon, “NNSA Awards $446 Million Contract To Manage Nuclear Plants”, Inside the Pentagon, 10 January 2013;
    National Nuclear Security Administration, “Solicitation, offer and award – contract no. NA0001942”, U.S. Department of Energy, 14 December 2011 (nnsa.energy.gov/sites/default/files/nnsa/04-14-inlinefiles/2014-03-25%20Basic%20Contract.pdf);
    Bechtel Group, “Annual Report 2015”, Bechtel Group, April 2015.

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.