PNNL

Abstract

The article describes the use of risk, economic and financial models as they were used to help DOE in their decision-making processes on TWRS Privatization. The article describes how the models were used to allocate risk between the contractor and DOE, evaluate whether DOE should accept certain risk allocations, how the economic and financial models were used to evaluate whether the government was receiving the best bid price and whether any money was being saved by using privatization, and evaluated alternative financing schemes. The paper also describes how the the financial model was used to evaluate and negotiate the pricing structure which became a part of the contract.