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USEC Oak Ridge lab agreement amended; total price up to $75.3 million
By Caroline Salls
Pittsburgh, July 31 – USEC Inc. entered into an amendment to its agreement with Oak Ridge National Laboratory (ORNL) operator UT-Battelle, LLC for continued research, development and demonstration of American Centrifuge technology in furtherance of the U.S. Department of Energy’s national security objectives, according to an 8-K filed Thursday with the Securities and Exchange Commission.
The amendment exercises the option to extend the period of performance for the agreement by an additional six months to March 31, 2015 and increases the total price to $75.3 million from $33.7 million.
USEC said the agreement provides for continued cascade operations, the continuation of core American Centrifuge research and technology activities and the furnishing of related reports to ORNL.
The agreement is a firm fixed-price contract with a total price of $75.3 million for the period from May 1, to March 31, 2015 and provides for payments of $6.7 million per month through Sept. 30 and $6.9 million thereafter.
According to the 8-K, the agreement is incrementally funded. Funds currently allocated are expected to cover the work to be performed through Aug. 5.
USEC said the agreement also gives ORNL one additional option to extend it by six months to Sept. 30, 2015. The option is priced at $41.7 million, according to the 8-K.
The company noted that the total price of the contract, including options, is $117 million.
USEC, a Bethesda, Md.-based supplier of nuclear fuel and advanced technology services, filed for bankruptcy on March 5 in the U.S. Bankruptcy Court for the District of Delaware. The Chapter 11 case number is 14-10475.
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