SIMCO completed WIPP’s new underground ventilation system over a year early and $10 million under budget. (Photo: DOE)
The Department of Energy has issued a three-year contract extension to Salado Isolation Mining Contractors (SIMCO), a single-purpose entity comprising Bechtel National and Los Alamos Technical Associates as a teaming contractor, for the continued management and operations of the Waste Isolation Pilot Plant, the DOE’s geologic repository for defense-generated transuranic waste in southeastern New Mexico.
SIMCO was awarded the 10-year, $3 billion M&O contract for WIPP in November 2022. The contract consisted of an initial four-year base contract and six one-year contract extension options. Under this latest agreement, the DOE said it has extended the contract for three of the six one-year extensions—beginning October 1, 2026, and continuing through September 30, 2029—with the remaining three one-year options still available to be exercised.
According to Bechtel, WIPP has surpassed its waste-shipment targets every year since the start of the contract, reaching its one thousandth shipment earlier this year. The company added that its SIMCO team has delivered major infrastructure upgrades, ensured uninterrupted waste processing, and completed more than 2 million safe work hours in 2025 with no lost-time incidents.
Performance review: According to the DOE, the decision to extend SIMCO’s M&O contract followed a comprehensive performance review, highlighting the following achievements:
- Safety leadership—SIMCO has demonstrated a commitment to safely and compliantly delivering the mission, operating without a recordable injury since February 2025. The company’s 12-month rolling total recordable incident rate of 0.21 at the end of November is below its target of 0.30 and outperforms the DOE’s goals of 0.8 (established by the DOE’s Carlsbad Field Office) and 1.1 (DOE headquarters).
- Operational excellence—SIMCO exceeded shipping goals for three consecutive years.
- Infrastructure success—SIMCO delivered two major projects ahead of schedule and under budget: the new underground air filtration and ventilation system and a utility shaft that enhances airflow and will serve as an additional hoist. The company also refurbished the salt pocket and completed multiple site improvements.
Quotes: “We are pleased to extend SIMCO’s contract for the next three years,” said Mark Bollinger, manager of the Carlsbad Field Office. “SIMCO has been an exceptional partner, safely emplacing waste from across the nation while completing critical infrastructure projects ahead of schedule and under budget, all without disrupting WIPP’s mission or compromising safety.”
Ben Souther, Bechtel’s general manager of environmental and security, added, “Bechtel’s close partnership with DOE, our strong safety culture, and delivery focus has enabled us to lay the groundwork for safe, compliant and effective operations at WIPP for decades to come. The progress we’ve made over the past three years under SIMCO is a true credit to our people who continue to drive safe, smart solutions at WIPP.”
