Aecom

United States: Aecom is the main contractor for US nuclear weapons laboratories where modernisation and development of new nuclear weapons takes place.
 

Tweet: Now is a great time for @AECOM to get out of the #nuclearweapons business and just say #goodbyenukes http://ctt.ec/x05C4+ Now is a great time for @AECOM to get out of the #nuclearweapons business and say #goodbyenukes http://ctt.ec/x05C4+

Company profile

Aecom, based in the US, provides professional technical and management support services to a broad range of markets, including transportation, facilities, environmental, energy, water and government.[1]

In the financial year ending 30 September 2016, Aecom reported revenues of US$ 17.4 billion (€ 16.5 billion), resulting in an operating income of US$ 375.0 million (€ 355.9 million) and a net profit of US$ 96.0 million (€ 91.1 million).[2] In October 2014, Aecom acquired US technology and engineering company URS.[3]

Contact information

Website: Twitter: Facebook:
www.aecom.com @AECOM www.facebook.com/AecomTechnologyCorporation

Aecom Global Headquarters
1999 Avenue of the Stars
Suite 2600
Los Angeles, CA 90067
United States
+1.213.593.8100

Nuclear weapons

Together with partners BWX Technologies, CH2M Hill and Northrop Grumman, Aecom is a joint venture partner in National Security Technologies (NSTec). The exact ownership distribution is not known. Since 2006, NSTec has managed the Nevada National Security Site (NNSS), previously known as the Nevada Test Site.[4] The US$ 3.1 billion (€ 2.3 billion) contract includes operation and maintenance of over 500 facilities and laboratories as well as associated infrastructure, vehicles, and IT/communications.[5] The contract expired in September 2016,[6] but has been updated a few times, most recently in June 2017 for an additional 3 months.[7] 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.[8] In the financial years 2014 to 2016, the National Nuclear Security Administration (NNSA) successfully completed the Lyra-series of three scaled-integral implosion experiments; these included Vega, a subcritical experiment in the NNSS complex using a plutonium pit.[9]

The joint venture is responsible for managing the nuclear explosives safety team, as well as support hazardous chemical spill testing, and emergency response training, among other tasks.[10] Aecom states that it specifically oversees remote field experiments, multiple laboratory operations, waste management systems, and the design and fabrication of electronic, mechanical and structural systems at the NNSS.[11]

Through its acquisition of URS in October 2014, Aecom became involved in the Lawrence Livermore (LLNL) and Los Alamos National Laboratories (LANL), which are jointly managed by BWXT, University of California, Bechtel and URS Corporation. The Lawrence Livermore National Security partnership also includes Battelle[12] and Texas A&M University.[13] LLNL and LANL play an important role in the research, design, development and production of nuclear weapons,[14] including the life extension program of the B61 nuclear bomb.[15]

The contract with Los Alamos National Security, which was awarded in 2006, currently amounts to around US$ 2 billion (€ 1.8 billion) per year plus a performance-based fee.[16] 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 the end of September 2017. While the performance evaluation was better than in the previous years, it was still not good enough to earn the operators an award of an extra contract year.[17] 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.[18] The LANL contract was up for pre- solicitation in June and July 2017. The University of New Mexico is reportedly very interested in the contract.[19]

The contract for LLNL was awarded in 2007 and currently runs through September 2019.[20] The maximum possible fee to be collected under the contract is US$ 45.5 million (€ 37.6 million) a year.[21] As at LANL, the National Nuclear Security Administration was criticised for renewing lucrative deals at LLNL despite poor performance of the contractors.[22]

Notes


Notes

[1]   Aecom, “Annual Report 2016”, Aecom, November 2016, p. 2.

[2]  Aecom, “Annual Report 2016”, Aecom, November 2016.

[3]  Aecom, “Aecom completes acquisition of URS Corporation”, News release Aecom, 17 October 2014 (investors.aecom.com/phoenix.zhtml?c=131318&p=irol-newsarticle&ID=1978957).

[4]  National Security Technologies, “NSTec, Who we are…”, Website National Security Technologies (www2.nstec.com/Pages/About.aspx), viewed June 2017;
Aecom, “10-K Annual Report 2013”, Aecom, November 2013 (phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MjIzNjQyfENoaWxkSUQ9LTF8VHlwZT0z&t=1);
InsideDefense, “DOE Awards Northrop Grumman Nevada Test Site Management and Operations Contract”, InsideDefense, 29 March 2006.

[5] Aecom, “Annual Report 2014”, Aecom, November 2014.

[6] Rothberg, D., “With billions at stake, contractors eye bid to operate National Security Site”, Website Las Vegas Sun, 25 November 2015 (lasvegassun.com/news/2015/nov/25/with-billions-at-stake-contractors-eye-bid-to-oper/).

[7] Rothberg, D., “With billions at stake, contractors eye bid to operate National Security Site”, Website Las Vegas Sun, 25 November 2015 (lasvegassun.com/news/2015/nov/25/with-billions-at-stake-contractors-eye-bid-to-oper/).             Nevada National Security Site, “National Security Technologies, LLC Contract Modifications”, Website NNSS, (www.nnss.gov/pages/NFO/PrimeContracts/NSTec-Mods.html), viewed in July 2017.

[8] 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).

[9]  National Nuclear Security Administration, “Los Alamos National Laboratory: Fiscal Year 2016 Performance Evaluation Report (PER)”, Website National Nuclear Security Administration, (nnsa.energy.gov/sites/default/files/nnsa/multiplefiles/fy_2016_lans_fdo_memo_publicly_releasable_per.pdf), p. 12; 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).

[10]      US Department of Energy, “FY 2016 Performance Evaluation Plan, National Security Technologies, LLC”, US Department of Energy, September 2015 (nnsa.energy.gov/sites/default/files/nnsa/multiplefiles/FY2016%20NSTec%20PEMP_Redacted.pdf);
CH2M HILL, “CH2M HILL awarded joint venture contract to provide support and infrastructure expertise at the Nevada Test Site”, Media release CH2M HILL, 3 April 2006 (www.ch2m.com/node/11401).

[11]     Aecom, “Annual Report 2014”, Aecom, November 2014.

[12]      Battelle is a US 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.

[13]     BWX Technologies, “Lawrence Livermore National Laboratory (LLNL)”, Website BWX Technologies (www.bwxt.com/about/operations–locations/lawrence-livermore-national-laboratory), viewed July 2017;
BWX Technologies, “Los Alamos National Laboratories”, Website BWX Technologies (www.bwxt.com/about/operations–locations/lawrence-livermore-national-laboratory), viewed July 2017;
National Nuclear Security Administration, “Our locations”, Website National Nuclear Security Administration (/nnsa.energy.gov/aboutus/ourlocations), viewed July 2017;
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);
Bechtel, “US National Laboratories”, Website Bechtel (www.bechtel.com/projects/us-national-laboratories/), viewed July 2017.

[14]     Union of Concerned Scientists, “Lawrence Livermore National Laboratory”, Union of Concerned Scientists, November 2012October 2013 (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 2016July 2017; Los Alamos National Laboratory, “National Security Science”, Los Alamos National Laboratory, December 2016, p. 35.
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 2016.

[15]    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 2016;
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 2016.   Los Alamos National Laboratory, “National Security Science”, Los Alamos National Laboratory, December 2016, p. 35.

[16]   U.S. Department of Energy, “Management and Operating Contract for the Los Alamos National Laboratory National Nuclear Security Administration – Contract No. DE-AC52-06NA25396”, U.S. Department of Energy, 21 December 2005 (www.lanl.gov/about/_assets/docs/conformed-prime-contract.pdf);
Oswald, M., “LANL contract up for bid after 2017”, Alburquerque Journal, 18 December 2015 (www.abqjournal.com/693548/poor-performance-at-lanl-means-contract-up-for-bid-post2017.html, viewed in July 2017.

[17]    Oswald, M., “LANL contract up for bid after 2017”, Alburquerque Journal, 18 December 2015 (www.abqjournal.com/693548/poor-performance-at-lanl-means-contract-up-for-bid-post2017.html, viewed in July 2017.

[18]     NNSA Los Alamos Site Office, “Amendment of solicitation/Modification of contract – Contract No. DE-AC52-06NA25396, Modification No. 264”, U.S. 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/);(www.pogo.org/blog/2015/01/nuclear-contractors-award-fee-slashed.html?referrer=https://www.google.com/), viewed July 2017;
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);(www.abqjournal.com/518894/news/feds-slash-fees-for-lanl-contractor-by-90.html), viewed July 2017;
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).

[19]    Federal Business Opportunities, “M–IGF::CL::IGFCompetition for Management and Operation of Los Alamos National L”, Website Federal Business Opportunities, (www.fbo.gov/index?s=opportunity&mode=form&id=d9ea1850bafeae63d73ee6a06cd9913c&tab=core&_cview=0), viewed in July 2017; Sapin, R., “Los Alamos National Laboratory RFP provides details on how to bid for multibillion-dollar management contract”, Website Alberquerque Journal, 13 July 2017 (www.bizjournals.com/albuquerque/news/2017/07/13/los-alamos-lab-rfp-provides-details-on-how-to-bid.html), viewed July 2017.

[20]     Lawrence Livermore National Security, “LLNS, LLC Prime Contract Documents”, Website Lawrence Livermore National Security (www.llnsllc.com/contract/contract.asp), viewed June 2016July 2017.

[21]    Inside the Pentagon, “University of California, Bechtel Consortium wins Livermore Contract”, Inside Defense, 10 May 2007.

[22]        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/).

Investors

Investors

The following financial institutions have made approximately US$ 20,101 million available to this producer since January 2014.

  • Aetna (United States)
  • Allianz (Germany)
  • Allstate (United States)
  • American Savings Bank (United States)
  • Anbang Insurance Group (China)
  • ANZ (Australia)
  • Aviva (United Kingdom)
  • AXA (France)
  • Banco Bilbao Vizcaya Argentaria (BBVA) (Spain)
  • Banco de Sabadell (Spain)
  • Bank of America (United States)
  • Bank of Communications (China)
  • Bank of Ireland (Ireland)
  • Bank of New York Mellon (United States)
  • Barclays (United Kingdom)
  • BB&T (United States)
  • BlackRock (United States)
  • BMO Financial Group (Canada)
  • BNP Paribas (France)
  • BOK Financial (United States)
  • Capital Bank (United States)
  • Capital Group (United States)
  • Capital One Financial (United States)
  • Cathay General Bancorp (United States)
  • Central Bank of Libya (Libya)
  • Central Pacific Financial Corporation (United States)
  • Chiba Bank (Japan)
  • CI Financial (Canada)
  • Citigroup (United States)
  • Comerica (United States)
  • Commerzbank (Germany)
  • Crédit Agricole (France)

  • Crédit Mutuel CIC Group (France)
  • Dimensional Fund Advisors (United States)
  • E.SUN Financial (Taiwan)
  • Fidelity International (Bermuda)
  • Fidelity Investments (United States)
  • Fifth Third Bancorp (United States)
  • First Financial Holding (Taiwan)
  • First Midwest Bancorp (United States)
  • FirstBank (United States)
  • Geode Capital Management (United States)
  • Goldman Sachs (United States)
  • Greenhaven Associates (United States)
  • Hotchkis & Wiley Capital Management (United States)
  • HSBC (United Kingdom)
  • Hua Nan Financial (Taiwan)
  • Invesco (United Kingdom)
  • JPMorgan Chase (United States)
  • Keycorp (United States)
  • Land Bank of Taiwan (Taiwan)
  • Legg Mason (United States)
  • Lloyds Banking Group (United Kingdom)
  • Lord, Abbett & Co (United States)
  • Luminus Management (United States)
  • Lyrical Asset Management (United States)
  • Manulife Financial (Canada)
  • Mega Financial (Taiwan)
  • Mitsubishi UFJ Financial (Japan)
  • Mizuho Financial (Japan)
  • Morgan Stanley (United States)
  • Munich Re (Germany)
  • Muzinich & Co (United States)
  • New Jersey Department of the Treasury (United States)
  • New York Life Insurance (United States)
  • Norges Bank (Norway)

  • Northern Trust (United States)
  • Northwestern Mutual Life Insurance (United States)
  • PNC Financial Services (United States)
  • Poplar Forest Capital (United States)
  • Primecap Management (United States)
  • Prudential (UK) (United Kingdom)
  • Prudential Financial (US) (United States)
  • Pzena Investment Management (United States)
  • Scotiabank (Canada)
  • SinoPac Holdings (Taiwan)
  • Standard Chartered (United Kingdom)
  • State Bank of India (India)
  • State Street (United States)
  • State Teachers Retirement System of Ohio (United States)
  • Stifel Financial (United States)
  • Sumitomo Mitsui Financial (Japan)
  • SunTrust (United States)
  • Taiwan Business Bank (Taiwan)
  • Taiwan Cooperative Financial (Taiwan)
  • Taiwan Financial Holding (Taiwan)
  • Thrivent Financial (United States)
  • TIAA (United States)
  • Toronto-Dominion Bank (Canada)
  • UBS (Switzerland)
  • US Bancorp (United States)
  • Vanguard (United States)
  • Voya Financial (United States)
  • Wedge Capital Management (United States)
  • Wells Fargo (United States)
  • Westpac (Australia)
  • Zions Bancorporation (United States)

 
[last updated 19 January 2018]

 

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.