FY 1995 cost savings report

Abstract

Fiscal Year (FY) 1995 challenged us to dramatically reduce costs at Hanford. We began the year with an 8 percent reduction in our Environmental Management budget but at the same time were tasked with accomplishing additional workscope. This resulted in a Productivity Challenge whereby we took on more work at the beginning of the year than we had funding to complete. During the year, the Productivity Challenge actually grew to 23 percent because of recissions, Congressional budget reductions, and DOE Headquarters actions. We successfully met our FY 1995 Productivity Challenge through an aggressive cost reduction program that identified and eliminated unnecessary workscope and found ways to be more efficient. We reduced the size of the workforce, cut overhead expenses, eliminated paperwork, cancelled construction of new facilities, and reengineered our processes. We are proving we can get the job done better and for less money at Hanford. DOE`s drive to do it ``better, faster, cheaper`` has led us to look for more and larger partnerships with the private sector. The biggest will be privatization of Hanford`s Tank Waste Remediation System, which will turn liquid tank waste into glass logs for eventual disposal. We will also save millions of dollars and avoid the cost of replacing aging steam plants by contracting Hanford`s energy needs to a private company. Other privatization successes include the Hanford Mail Service, a spinoff of advanced technical training, low level mixed waste thermal treatment, and transfer of the Hanford Museums of Science and history to a private non-profit organization. Despite the rough roads and uncertainty we faced in FY 1995, less than 3 percent of our work fell behind schedule, while the work that was performed was completed with an 8.6 percent cost under-run. We not only met the FY 1995 productivity challenge, we also met our FY 1995-1998 savings commitments and accelerated some critical cleanup milestones. The challenges continue. Budgets remain on the decline, even while the expectations increase. Yet we are confident in our ability to keep our commitments and goals by identifying new efficiencies in the Hanford cleanup program. We will also pursue new contracting arrangements that will allow us to foster greater competition and use more commercial practices while maintaining our commitment to the safety and health of the public, our workers, and the environment.