Salado Isolation Mining Contractors Help Save $2B

The Supply Chain Management Center (SCMC), a strategic supply chain program dedicated to simplifying federal buying processes recently achieved a significant savings of more than two billion dollars in purchasing with National Nuclear Safety Administration and the Department of Energy Environmental Management’s (DOE EM) prime contractors across the country.

Salado Isolation Mining Contractors (SIMCO), the management and operating contractor for the DOE EM’s Waste Isolation Pilot Plant (WIPP) has contributed $3.9 million towards the $2 billion SCMC-enabled savings milestone.

“Two billion dollars in savings is an incredible achievement. It speaks to the deep commitment SIMCO and the DOE have in being good stewards of taxpayer dollars while supporting an important national security and cleanup mission,” said Ken Harrawood, SIMCO Program Manager.

SCMC has been transforming the approach to enterprise supply chain efficiency since 2006. The program works collaboratively with prime contractors to offer purchasing agreements and digital procurement tools that can be used by multiple sites across the DOE. This saves time by reducing duplication of effort and enabling buyers to focus on site-specific needs. By leveraging a combined $7 billion in annual spending, SCMC can negotiate prices, which saves money. SCMC regularly works with more than 26 NNSA and DOE EM sites across the country.

“Collaboration is key. This achievement is proof of what happens when prime contractors work together for the benefit of the enterprise,” said Scott Bissen, SCMC Senior Director.

SCMC helps sites stretch budgets and taxpayer dollars. Savings generated through SCMC agreements and tools can be reinvested into additional site priorities, achieving more mission with existing resources.

“The SCMC is an important part of our business strategy,” said Marty Gonzalez, SIMCO Acquisition Services Manager. “Our team works hard to be good stewards of taxpayer dollars, and I’m proud of the contribution the team has made to this savings milestone.”

Working together with DOE, prime contractors at sites are eliminating inefficiencies, improving operational cost management, and contributing to a resilient, more agile and effective supply chain.