A procurement contractor for a decommissioned nuclear materials refinement site has saved the Office of Environmental Management more than $124 million in the past six years, including nearly $20 million in the fiscal year ending Sept. 30.
Savannah River Nuclear Solutions (SRNS), management and operating contractor at the Savannah River Site in Aiken, N.C., achieved the savings primarily through using a specific supply-chain program's digital tools and multi-agency agreements, the Department of Energy (DOE) stated in the Dec. 20 announcement.
The Supply Chain Management Center (SCMC) "is a strategic supply chain program dedicated to simplifying the buying process to help enable savings for EM and National Nuclear Security Administration prime contractors like SRNS," the DOE states in the announcement. SCMC is managed by Honeywell FM&T at the Kansas City National Security Campus, according to the DOE. Contractors work with SCMC to develop purchasing agreements that can be used by multiple DOE offices, thus saving time and allowing for negotiation for lower prices, the DOE states.
“We’re taking full advantage of the incredible savings opportunities through the SCMC and its ability to act as a hedge against rising costs,” David Dietz, SRNS supply chain procurement director, said in the announcement. “This practice — combined with shared procurement tools and apps, smart data analytics and advanced procurement training also provided by the SCMC — accounts for much of the impressive savings our SRNS team has been able to achieve.”
John O’Connell, SCMC principal customer programs leader, said SCMC appreciates SRNS' consistent collaboration and dedication to strategic sourcing, the announcement states.
"The enterprise looks to your site as a leader,” O'Connell said in the report.
Jay Johnson, senior director of SRNS contracts and supply chain management, said cost savings is essential in an inflationary market that has challenges in the global supply chain.
“But it’s not just about saving money, it’s about supporting small businesses, including our mentor-protégé businesses,” Johnson said in the announcement. “The more money we save through strategic procurement practices, the more we can invest in these same companies.”
