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Copyright 2000 The San Diego Union-Tribune  
The San Diego Union-Tribune

November 15, 2000, Wednesday

SECTION: BUSINESS;Pg. C-1

LENGTH: 473 words

HEADLINE: SAIC joins Bechtel in study of nuclear waste plan

BYLINE: Dean Calbreath; STAFF WRITER

BODY:
After a bidding war marked by allegations of political influence-peddling, San Diego's SAIC and San Francisco's Bechtel Corp. have won a $3.1 billion contract to determine whether nuclear waste should be stored at a site in Yucca Mountain, Nev.

Under the contract, Bechtel SAIC Co. -- a company formed by Bechtel and Science Applications International Corp. -- will manage the Energy Department's civilian radioactive waste program. Bechtel SAIC's duties will include drafting a report for the White House next year on whether Yucca Mountain is suitable as a permanent repository for high-level nuclear waste.

Located about 100 miles northwest of Las Vegas, Yucca Mountain has sparked controversy since it was first proposed as a nuclear waste dump in 1986.

Environmentalists say the project could overheat the area's ground water. And they question whether the site is large enough to house all 77,000 tons of the nation's highly radioactive nuclear waste.

Polls show that the project is opposed by 85 percent of Nevada residents as well as by the state's bipartisan congressional team.

SAIC has been vying for work at Yucca Mountain for years.

In 1988, SAIC and Bechtel gained the first contract to begin reviewing Yucca Mountain's suitability as a waste site. But TRW, a losing bidder on the project, complained that SAIC had gained the job through its close relationship with the Energy Department.

A subsequent report by the General Accounting Office, the investigative arm of Congress, later said there was a pattern of conflicts of interest between SAIC and the Energy Department. Among other things, the Energy Department official in charge of awarding the contract was a former SAIC employee.

After TRW was brought onto the project, it eventually became a partner with SAIC. But five months ago, the two companies split to compete on the current bid.

As the bidding process went forward, SAIC donated heavily to the political campaigns of Nevada legislators. This spring, Nevada's Democratic Sen. Harry Reid and Republican Congressmen Jim Gibbons and John Ensign returned $8,000 in political donations from SAIC.

"I was unaware of SAIC's relationship to the Yucca Mountain project," Gibbons said when he returned the money. "Nevadans must always be united in our efforts to keep nuclear waste out of our state, so I will be joining with Sen. Reid and Rep. Ensign in returning SAIC's campaign donations."

Barbara Boyle, senior regional representative of the Sierra Club, says she is "not surprised" by the Energy Department's choice of the two companies -- both of which have served as consultants to the nuclear power industry.

"But it's really important for them to have independent scientific analyses to determine whether Yucca Mountain is the best site for this project," Boyle added.





LOAD-DATE: November 17, 2000




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