This paper describes the elements of Fluor Hanford's successful privatization of a major support services function. The privatization has accelerated the closure of the Department of Energy's Hanford Site by streamlining operations and using the realized cost savings to maintain the accelerated schedules set by the Department of Energy (DOE) and other regulatory stakeholders. Issues with worker demographics, future workload forecasting, budget optimization, and long-term community economic development were key components to Fluor Hanford's decision to choose the controversial and difficult pathway of outsourcing a Cold War legacy function to a private company. Many privatization efforts are abandoned in the preliminary planning stages due to extreme risk: frequently the final return on investment is less than anticipated. In this case, Fluor Hanford has successfully leveraged onsite assets to support the ongoing clean-up mission, provide potential long-term employment for the displaced workforce as site closure progresses, and establish a manufacturing base supporting the local economy. Based on several factors, which are described in this paper, the privatization of the Hanford Site Fabrication Services to an offsite vendor operating a large local business unit has been successful for virtually all of the stakeholders.
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