FY 2001 CONTRACT PERFORMANCE INCENTIVE: Disposition 200 & 300 Area Uranium

SECTION 1
GENERAL INFORMATION

SECTION 2
PERFORMANCE OUTCOMES

Check appropriate box:

þ Outcome #1: Restore the River Corridor for multiple uses

¨ Outcome #2: Transition Central Plateau to support long-term waste management

¨ Outcome #3: Put DOE Assets to work for the future

SECTION 3
PERFORMANCE OBJECTIVE (S) MEASURE (S) & EXPECTATION (S)

List associated performance objectives, measures, and performance expectation. Identify associated PBS# for each performance objective and/or measures as appropriate

Performance Objective: Disposition Pu, U, & Cs/Sr Capsules

Measure 1 - Pu metal/oxides/other types dispositioned

Expectation 1:	Disposition all uranium billets, all remaining uranium dioxide, and the surface contaminated fuel and scrap materials located in the 200 and 300 Areas.
Expectation 2:	Complete the disposition of Thorium-232 located in the 303K facility.

SECTION 4
FEE SCHEDULE

Identify fee schedule by performance objective and/or measure(s)

Stretch Fee = 100.0% of fee available for this Performance Incentive

Measure 1 -

Stretch - Pu metal/oxides/other types dispositioned.

Expectation 1:	The contractor shall earn 70% of the fee available for this Performance Incentive upon completion of this expectation in accordance with the criteria set forth in Section 5.
Expectation 2:	The contractor shall earn 30% of the fee available for this Performance Incentive upon completion of this expectation in accordance with the criteria set forth in Section 5.

SECTION 5
PERFORMANCE REQUIREMENTS

PREVIOUS YEAR’S GATEWAY: Describe previous year’s gateway (if applicable) that must be completed before fee can be paid under this Performance Incentive. The requirements listed below are the gateway only requirements for this Performance Incentive.

NONE

GENERAL REQUIREMENTS: In order to earn incentive fee under this Performance Incentive, the Contractor shall:

1. Meet the specific completion criteria and expectations set forth in this Performance Incentive; and
2. Not incur any unfavorable cost variance [(BCWP-ACWP)/BCWP] greater than 5%, or incur any unfavorable schedule variance [(BCWP-BCWS)/BCWS] greater than 7.5%, measured at the Project Baseline Summary level at the end of the fiscal year.

DEFINE COMPLETION: (Specify Performance Elements and describe indicators of success (quality/progress). Include baseline documentation/data against which completion documentation should be compared.

Successful completion requires disposition of all identified forms of uranium by 9/30/01 to defined disposition pathway end points as defined in EA-1319 of June 2000.

Expectation 1:

Complete the removal and property transfer of all uranium billets (approx. 235 MTU), and all remaining uranium dioxide (approx. 4.47 MTU) to the DOE Portsmouth Site in Ohio as agreed to in the Transfer of Nuclear Materials from the Hanford Site to the Oak Ridge Operations/Portsmouth Site Shipper/Receiving Plan of June 2000, by 3/31/01, as documented in DOE/NRC F 741 “US Department of Energy and US Nuclear Regulatory Commission Nuclear Material Transaction Report” forms. Complete and submit to DOE-RL an updated project management plan to remove and relocate approximately 965 MTU of unfinished and finished un-irradiated uranium fuel from the 300 Area to the final 200 Areas relocation selected sites, by 12/15/00. This includes the 140 MTU of contaminated fuel and scrap material, and the determination for the remaining fuel, on whether to continue to store it in the 300 Area or to relocate it to the 200 Areas, awaiting the Hanford Solid Waste Environmental Impact Statement record of decision determination for its disposition. Execute the plan to remove and relocate approx. 140 MTU of surface contaminated fuel, and scrap material by 6/30/01.

Expectation 2:

Prepare and execute a plan to disposition thorium materials located in the 303K facility away from the 300 Area to the 200 Areas by 9/30/01.

DEFINITIONS: (Define terms)

As defined in EA-1319 of June 2000 (except thorium):

• Billets – Metallic forms of uranium mechanically formed into cylindrical shapes (billets) stored in the 300 Area FSS facilities
• Unfinished and finished fuel – All finished and unfinished un-irradiated uranium fuel and scrap materials stored in the 300 Area FSS facilities
• UO2 – Uranium dioxide materials stored in the 200 and 300 Areas

Thorium - Thorium-232 materials stored in the 300 Area (303K) FSS facilities

COMPLETION DOCUMENTS LIST: (In addition to the Completion Notice, the document(s) that should be submitted/data that should be available/actions to be taken by evaluator, to determine actual performance to the requirements stated above.

• Reconciled MC&A Documentation (DOE/NRC F 741 Forms) referenced in DOE Order 474.1.
• Updated Project Management Plan.

ASSUMPTIONS/TECHNICAL BOUNDARY CONDITIONS AND REMEDY STATED: (For reasonably foreseeable impacts to performance which are not covered under the Contract. If the assumption or condition proves false the remedy shall be in effect. If remedy is not possible the next step is renegotiation).

• If Oak Ridge Portsmouth Site stops, curtails, or refuses shipments of any uranium materials from Hanford, then this PI will be renegotiated.
• Disposition of any materials in this Performance Incentive may include DOE approval of a sales agreement.

SECTION 6
SIGNATURES