Parsons may get another shot at massive nuclear cleanup contract.

Parsons Corp. has prevailed in its objection to the awarding of an $800 million federal cleanup contract to a group of companies which include Torrance-based International Technology Corp., the General Accounting Office announced.

The GAO's decision last week means Pasadena-based Parsons could take the contract to clean up the nuclear weapons facility in Hanford, Wash., away from San Francisco-based Bechtel Corp. and Torrance-based IT, said Douglas Templeman, senior vice president of Parsons Environmental Services Inc., a Parsons subsidiary.

"The fact that the award decision is being reviewed, one has to say the game is still on," Templeman said. "We always believed our protest would be sustained and we are pleased."

In January the U.S. Department of Energy awarded the contract, which is believed to be the second largest environmental pact ever. IT's portion is estimated to be worth $240 million.

IT officials previously told the Business Journal they hoped to begin work and start receiving income from the project last month, but work has been delayed because of the bid protest.

The GAO's ruling last week recommended the Department of Energy re-evaluate Parson's bid and the winning bid of Bechtel and IT to determine which proposal represents "most probable cost to the government," said David Ashen, GAO deputy assistant general counsel.

If the Department of Energy cannot reevaluate costs based on information from the old bids, Parsons, Bechtel and Oak Brook, Ill.-based Waste Management Inc. should resubmit bids, the GAO ruled.

Ashen declined to reveal details about the bid protest, saying it involved "proprietary information" and "trade secrets" of the companies involved.

He said the GAO decision took the form of a recommendation and Department of Energy officials could decide not to implement it. However, Ashen added, "in 99.9 percent of the cases the (federal) agencies implement our recommendations."

Bernie Pleau, spokesman for the Department of Energy, said, "All I can tell you is we are evaluating the report at this time." He declined to comment further.

IT, in a statement last week, said it "looked forward to a prompt decision by the Department of Energy."

Edward S. Keen, Bechtel president in charge of the Hanford project, said in a statement, "As the Department of Energy stated in January, the Bechtel team is the best-qualified firm to perform the environmental restoration management contract at Hanford. It is unfortunate that today's decision will further delay this important work."