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Game changing fine for LLC?

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NNSA has placed a fine on the LLC that used to run Y-12. Yes, that is correct, not the one running it now. The detail that they waived the fine after placing it is less important. The case has been established that LLCs can, and will, be fined after they loose the operation contract.


http://energy.gov/sites/prod/files/2016/01/f29/Preliminary%20Notice%20of%20Violation%2C%20Babcock%20%26%20Wilcox%20Technical%20Services%20Y-12%2C%20%20LLC.pdf

Comments

Anonymous said…
This must have LLNSLANS lawyers scrambling for the doors. Just imagine all the problems that will surface years later, and the unknown financial cost associated with the fines. It is made even more interesting since the lead party in all such fines would be UC, as the LLC majority partner.
2/04/2016 1:04 PM
Anonymous said…
No matter how you read this, it has to be taken as bad news for the current LLC. DoE is now expecting to keep them on the hook for violations discovered after they terminate the operating contract. This might explain all the worried looks on some of the attorney's faces recently.
2/08/2016 9:45 AM
Anonymous said…
You can bet that every lawyer at any university that was even thinking of bidding on LANL will see this ruling and advise against being part of the LLC that runs the Lab. The chances of a screwup that results in a fine are very high, and the clock on paying the fine doesn't expire when the contract runs out. There is nothing but loss in that future.

After this ruling, the odds are not in favor of having a university partner in the next contract.
2/11/2016 9:45 AM
Anonymous said…
After this ruling, the odds are not in favor of having a university partner in the next contract.

February 11, 2016 at 9:45 AM

Despite the wishful thinking of some, the odds were never in favor of that. UC has taken way too many hits for another university to contemplate the same fate.
2/11/2016 7:18 PM
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