Plutonium Disposition Program PDF Download

NNSA, a separately organized agency within DOE, manages the Plutonium Disposition program to dispose of surplus weapons-grade plutonium by burning it as MOX fuel, a mixture of plutonium and uranium oxides, in specially modified commercial nuclear reactors. In 2012, DOE forecasted cost increases of close to $3 billion over the previous estimates for the program's two construction projects, the MOX facility and the WSB for disposing of waste from the MOX facility. GAO was asked to review these cost increases and the life-cycle cost estimate. This report examines: (1) drivers NNSA identified for the cost increases; (2) the extent to which NNSA analyzed underlying causes of the cost increases; (3) steps NNSA took to hold construction contractors accountable for their role, if any, in the cost increases; and (4) the extent to which NNSA's most recent estimates met cost- and schedule-estimating best practices. GAO reviewed NNSA's draft life-cycle cost estimate and contractor estimates of the MOX project's cost and WSB schedule, compared the estimates with cost- and schedule-estimating best practices, and interviewed DOE and NNSA officials. GAO is recommending, among other things, that DOE conduct a root cause analysis of the Plutonium Disposition program's cost increases and ensure that future estimates of the program's life-cycle cost and cost and schedule for the program's construction projects meet all best practices for reliable estimates.