URS Corporation (NYSE: URS) today announced that an international team led by the company's Washington Division has been named the preferred bidder and has been selected to begin contract finalization with the UK Nuclear Decommissioning Authority (NDA) in the competition to secure a Parent Body Organization (PBO) for the Sellafield nuclear complex in West Cumbria, United Kingdom. The consortium, Nuclear Management Partners, Ltd., includes URS' Washington Division, AREVA and AMEC plc. The team would manage a scope of work with a maximum annual value of approximately GBP 1.3 billion, or $2.5 billion, under a five-year base contract, with an option to extend the contract periodically for a total of 17 years. The contract is expected to be awarded in October 2008, with work likely to commence no earlier than late 2008.
Martin M. Koffel, Chairman and Chief Executive Officer of URS commented: "We are delighted to have been selected as the preferred bidder for the Sellafield site, which is the UK's most important nuclear facility. URS has unparalleled experience in nuclear power, decommissioning, clean-up and process operation, and we believe our selection underscores the leadership, technical knowledge and long-term commitment of both URS and our business partners. We look forward to demonstrating our broad capabilities in support of the NDA on this important project," Koffel said. "Our consortium brings together the leaders in nuclear decommissioning and recycling in the US, the UK and France," said Tom Zarges, President of URS' Washington Division. "Our team is confident that it can safely and efficiently meet the challenges presented by this historic and complex site while achieving real savings for UK taxpayers. We look forward to finalizing the contract with the NDA successfully."
"Our objective is to set the highest standards in health, safety, security and environmental protection," said Robert A. Pedde, President of the Nuclear Management Partners. "We are committed to reducing site hazards cost effectively through clean-up and decommissioning, while maximizing commercial value in support of the Sellafield mission."
Under the proposed contract, the preferred bidder organization will own the shares in the Sellafield Site License Company, Sellafield Ltd., for the duration of the contract. The work covers the Sellafield, Calder Hall, Windscale and Capenhurst sites which all form part of the Sellafield Site License Company.
URS Corporation (NYSE: URS) is a leading provider of engineering, construction and technical services for public agencies and private sector companies around the world. The Company offers a full range of program management; planning, design and engineering; systems engineering and technical assistance; construction and construction management; operations and maintenance; and decommissioning and closure services. URS provides services for power, infrastructure, industrial and commercial, and federal projects and programs. Headquartered in San Francisco, the Company operates through three divisions: the URS Division, the EG&G Division and the Washington Division. URS Corporation has more than 50,000 employees in a network of offices in more than 30 countries (www.urscorp.com).
Statements contained in this press release that are not historical facts may constitute forward-looking statements, including statements relating to the future value, execution and performance of the proposed contract as well as future economic and industry conditions. The Company believes that its expectations are reasonable and are based on reasonable assumptions. However, such forward-looking statements by their nature involve risks and uncertainties. We caution that a variety of factors could cause the Company's business and financial results to differ materially from those expressed or implied in the Company's forward-looking statements. These factors include, but are not limited to: an economic downturn; changes in the Company's book of business; the Company's compliance with government contract procurement regulations; the Company's leveraged position and ability to service its debt; restrictive covenants in the Company's Credit Facility; the Company's integration of the Washington Group International, Inc.; the Company's ability to procure government contracts; the Company's reliance on government appropriations; the ability of the government to unilaterally terminate the Company's contracts; the Company's ability to make accurate estimates and control costs; the Company's and its partners' ability to bid on, win, perform and renew contracts and projects; the Company's dependence on subcontractors and suppliers; customer payment defaults; availability of bonding and insurance; environmental liabilities; liabilities for pending and future litigation; the impact of changes in regulations and laws; industry competition; the Company's ability to attract and retain key individuals; employee, agent and partner misconduct; risks associated with international operations; business activities in high security risk countries; third party software risks; terrorist and natural disaster risks; the Company's relationships with its labor unions; the Company's ability to protect its intellectual property rights; anti-takeover risks and other factors discussed more fully in the Company's Form 10-Q for the quarter ended March 28, 2008, as well as in other reports filed from time to time with the Securities and Exchange Commission. These forward-looking statements represent only the Company's current intentions, beliefs or expectations, and any forward-looking statement speaks only as of the date on which it was made. The Company assumes no obligation to revise or update any forward-looking statements.