Arthur McMiler
A unit of engineering and construction company Fluor will continue providing naval nuclear propulsion services to the Naval Nuclear Laboratory under a modification of an earlier U.S. Navy cost-plus-fixed fee contract. Valued at nearly $560.5 million, the contract modification calls for Fluor Marine Propulsion’s work performance mostly at Pittsburgh, Pennsylvania, and Schenectady, New York, the Department of Defense said Tuesday.
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Funding Allocation Details
Funding obligated at the time of the award includes Navy allocations for operations and maintenance in fiscal year 2025 amounting to $87.7 million; research, development, test and evaluation of almost $40 million; and $1.2 million in other procurement.
Other allotments for the contract modification award will be drawn from the Navy’s FY 2024 budget for shipbuilding and conversion valued at $33.8 million and $800,000 from research, development, test and evaluation funding. The Navy will also tap $266,733 and $733 from its FY 2022 and FY 2023 shipbuilding and conversion budget allocations, respectively. Funds amounting to $88.5 million are expiring at the current fiscal year’s end.
The Naval Sea Systems Command is the contracting activity of the naval nuclear propulsion services procurement.
The Navy awarded Fluor the original contract for NNL services in July 2018, with a potential value of $13 billion. Besides work on naval propulsion technology, the contract also covers research, maintenance, design, construction, operation and testing. In October 2023, Fluor secured a five-year extension on the NNL contract up to 2028.
