ALLOCATING VENDOR RISKS IN THE HANFORD WASTE CLEANUP
Organizations may view outsourcing as a way to eliminate risk. This application uses a decision analytic approach to determine which risks can be shared or shifted to vendors and which ones should be borne by the buyer. In this case, we found that allocating risks incorrectly could increase costs dramatically. This approach was used to develop the Request for Proposals (RFP) for the U.S. Department of Energy's (DOE's) privatization initiative for the Hanford Tank Waste Remediation System (TWRS). We describe this application and summarize technical and organizational lessons learned in the years following. The model used an assessment protocol to predict how vendors would react to proposed risk allocations in terms of their actions and their pricing.
- Research Organization:
- Pacific Northwest National Lab. (PNNL), Richland, WA (United States)
- Sponsoring Organization:
- USDOE
- DOE Contract Number:
- AC05-76RL01830
- OSTI ID:
- 15020858
- Report Number(s):
- PNNL-SA-40559; EW01J2030; TRN: US0504706
- Journal Information:
- Interfaces, Vol. 34, Issue 3
- Country of Publication:
- United States
- Language:
- English
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