United States GAO General Accounting Office Washington, D.C. 20548 Resources, Community, and Economic Development Division B-276266 March 4, 1997 The Honorable John R. Kasich Chairman, Committee on the Budget House of Representatives Subject: Department of Energv: Maior Svstem Acquisitions From 1980 Through 1996 Dear Mr. Chairman: As requested, we are providing you with a listing of the major system acquisitions (MSA) that were conducted by the Department of Energy (DOE) between 1980 and 1996. Major systems are those projects that are critical to fulfWing an agency mission, entail the allocation of relatively large amounts of resources, and warrant special management attention. The enclosed table lists whether they were completed, terminated, or ongoing as of June 1996 and provides costs and schedule data associated with each. These data were compiled as part of our report entitled Denartment of Enerffv: On~ortunitv to Improve Management of Maior Svstem Acauisitions (GAOiRCED-97-17, Nov. 26 1996). As discussed in our report, DOE has spent tens of billions of dollars on projects over the past decade and a half, many of which experienced significant cost overruns’ and delays, and some have never been completed. These activities have involved large-scale first-of-a-kind projects requiring substantial construction and other expenses. These activities have included developing and producing nuclear weapons; operating nuclear reactors, uranium enrichment plants, and plutonium production plants; performing research and development on both military and civilian uses of nuclear energy; promoting and funding nuclear and other sciences; fostering energy conservation and efficiency; managing federal petroleum reserves; and, more recently, cleaning up environmental contamination resulting from the Department’s past operations. ‘Cost overruns are increases from a project’s original cost estimate. GAO/RCED-97-85R DOE’s MS&, 1980-96 /48-QG(l2 B-276266 As shown in the table, from 1980 through 1996, DOE conducted 80 projects that it designated as MSAs, and it has completed 15 of these projects. Most of them were finished behind schedule and with cost overruns. Thirty-one other projects were terminated prior to completion, after expenditures of over $10 billion. The remaining 34 projects are ongoing. Cost overruns and “schedule slippage” have occurred and continue to occur on many of the ongoing projects. We performed this work during the first 2 weeks of February 1997 in accordance with generally accepted government auditing standards. Please contact me on (202) 512-3841 if you or your staff have any questions. Major contributors to this report include William M. Seay and William F. Fenzel. Sincerely yours, Enclosure 2 GAO/RCED-97-85RDOE'sMSAs,lSSO-96 ENCLOSURE I ENCLOSURE I HISTORY OF THE DEPARTMENT OF ENERGY’S MAJOR SYSTEM ACQUISITIONS FROM 1980 THROUGH 1996 Originalcost Projectname and constructionline item numbeP estimate 10 MWe CentralReceiverSolarThermalPowerPlant(76-2-b) $108.0 1-2 GeV SynchrotronRadiationSource(AdvancedLtghtSource)(87.R-406) $145.3 6-7 GeV SynchrotronRadiationSource(AdvancedPhotonSource) $626.9 (89-R-402) ContinuousElectronBeamAcceleratorFacility(87-R-203) $262.6 EbullatedBed (H-Coal)Pilot Plant $110.2 Fuelsand MaterialsExaminationFacility(78-6-f) $167.6 HanfordEnvironmental Compliance(89-D-172) $262.3 $242.4 March1996 December1995 High EnergyLaserFacility(NOVA)(78-4-a) $i95.0b $177.7b September1983 December1985 MirrorFusionTest Facility(78-3-a) $132.5 $363.8 September1981 February1986 StirlingEngineSystemsDevelopment N/A StrategicPetroleumReserves $2,499.0 TokamakFusionTest Reactor(76-5-a) $390.6 TritiumLoadingFacilityReplacement(88-D-130) $125.4 WasteIsolationPilot Plant(77-13-f) $737.0 West Valley Demonstration Project $446.0 50 MWe GeothermalDemonstration PowerPlant (80-G-001) AdvancedisotopeSeparationProgram I N/A 3 GAO/RCED-97-85RDOE'sMSAs,1980-96 ENCLOSURE I ENCLOSURE I I Dollarsin millions I Schedule II Originalcost Costat Currentcost Original Actual Current Projectname and constructionline item numbeP estimate Finalcost termination estimate completiondate completiondate Terminationdate completiondate ClinchRiverBreederReactor $699.0 $1,600.0 1979 December1983 CompactIgnitionTokamak(88-R-902) $444.5 $107.1 September1993 1992 ElectricVehicleProject N/A $180.0 N/A 1983 ElmoBumpyTorusProof-of-Principle (80mMF-3) $173.9 $28.1 June 1982 1984 Fuel ProcessingRestoration(85-D-139) $270.0b $305.8b September1992 April 1992 FusionMaterialsIrradiationTest Facility(78-3-b) $134.4 $105.9 September1983 1985 Gas CentrifugeEnrichmentPlant (76.8-g) $5,100.0 $2,814.) June 1993 June 1985 HanfordWasteVitrificationPlant(88-D-173) $1,010.2 $418.3 September1996 August 1996 IIHighBTU SyntheticPipelineGas Demonstration Plant (CONOCO) 11 High BTU SyntheticPipelineGas Demonstration Plant (ICGG) I $198.8 I $156.8 1 I $53.7 I $77.0 I I March1981 I March1981 1 I July 1981 I July 1981 1 II Intersecting StorageAccelerator(78-10-b) $398.6 $201.3 June 1986 1983 Low-LevelWasteDisposalFacilities(94-D-406) $141.8 $7.0 September2004 September1996 MediumBTU IndustrialFuel Gas Demonstration Plant $93.0 $65.6 September1981 July 1981 MonitoredRetrievableStorageProject(93-D-406) N/A $35.7 N/A N/A Multi-TankWasteStorageFacility(93-D-183) $240.0 $56.1 June 1999 December1995 New ProductionReactorCapacity(92-D-300) N/A $1,257.0 2000 October1992 PlutoniumRecoveryModificationProject(89-D-125) $370*8b $24.3b September1997 October1990 ProcessFacilityModification(84-D-135) $140.0b $57*9b N/A June 1988 ReactorSafetyAssurance(90-D-150) $109.1b $15.Sb September1994 June 1994 4 GAO/RCED-97-86RDOE’s MSAs, 1980-96 ENCLOSURE I ENCLOSURE I Dollarsin millions Schedule Originalcost Cost at Currentcost Original Actual Current Projectname,andconstructionline item numbeP estimate Finalcost termination estimate completiondate completiondate Terminationdate completiondate ReactorSeismicImprovements(92-D-141) $103.4 N/A September1996 August1993 SolventRefinedCoal DemonstrationPlant (SRC-2) N/A $70.8 September1984 July 1981 SolventRefinedCoal DemonstrationPlant (SRC-1) N/A $190.7 June 1984 August1984 II SpaceNuclearReactorPower System(86-N-105) $22.7b $36.3b December1988 1992 SpecialNuclearMaterialsResearchand DevelopmentLaboratory Replacement(88-D-105) $210.0b I I $37.0b I March1994 February1991 II SpecialIsotopeSeparattonProject(86-D-148) StrategicPetroleumReserveExpansion $530.0b $1,460.0 $85.0b $6.0 Superconducting SuperCollider(90-R-106) $5,893.6 $2,20Md TokamakPhysicsExperiment (94-E-200) $694.0 $73.7 UraniumSolidificationFacility(formerlyFuel ProductionFacility) $85.0b 1 $I16.3b 1 (85-D-145) I AlbuquerqueLaboratoryEnvironmentalRestorationProject(AL-I) 0 1,348.0 e AlbuquerqueProductionEnvironmentalRestorationProiect(AL-2) I $254.0 e .3 AlbuquerqueEnvironmental RestorationProjectGJPR,MRAP(AL-5) AVLIS R&D Proiect’ N/A $I,3043 N/A October1993 B-Factory(94-G-304) $293.2 $293.2 March1998 September1998 Chemistryand MetallurgyResearchUpgrade(95-D-102) $204.0 $223.6 September2003 September2002 DefenseWasteProcessingFacility(81-T-105) $1329.5 $2,470.7 March1990 November1998 Environmental, Safety,and Health Enhancements (90-D-126) $26.8 $95.5 June 1994 September1996 5 GAO/RCED-97&R DOE's MSAs, 1980-96 ENCLOSURE I ENCLOSURE I Dollarsin millions Schedule Originalcost Costat Currentcost Orighal Actual Curren Projectname and constructionline item numbeP estimate Finalcost termination estimate completiondate completiondate Terminationdate completiondatg Environmental MolecularSciencesLaboratory(91-E-100) $217.8 $229.9 September1995 September199i FacilitiesCapabilityAssuranceProgram(88-D-122)g N/A $447.7 N/A NIP FermilabMain Injector(92-G-302) $197.0 $259.3 September1996 June 1999 B e FernaldEnvironmental ManagementProgram September2023 September2020 FormerlyUtilizedSites RemedialActionProject $706.0 $2,500.0 2001 2016 High-LevelWasteRemovalFrom Filled Waste Tanks(93-D-187) $88.6 $628.2 September1999 September2008 High-LevelWasteTank Farm Replacement(91-D-172) $296.2 $91.2 September1998 June 1996 e IdahoNationalEngineeringLaboratoryEnvironmentalRestorationProject $3,365.0 September2019 2023 InitialTank RetrievalSystem(94-D-407) $245.0 $358.2 March2010 March2010 Van-Radioactive HazardousWasteManagement(83-D-148) $20.7 $165.7 June 1986 June 1997 Nonnuclear Reconfiguration, Complex-21(93-D-123) $26.0 $198.1 N/A June 1998 NuclearWeaponsResearch,Development,and TestingFacilities ?evifalizafion PhaseII (88~0-106) $361.4 $308.6h September1993 June 1998 PhaseIll (90-D-102) $70.1 $106.3 September1993 June 1998 PhaseIV (92-O-102) $96.4 $95.8 September1996 September1997 PhaseV (94-D-102) $82.0 $37.4 December1997 March 1998 e 0 lak RidgeOperationsOffice(EnvironmentalRestorationProject) N/A N/A ‘lantwideFire Protection,PhasesI and II $321.2 $159.7 June 1997 December1999 90-D-149) Radioactive WasteManagementComplexTransuranlcWasteTreatment $146.5 $154.9 September1994 April 1999 tnd StorageFacility(90-D-177) 6 GAOIRCED-97-86RDOE’s MSAs, 1980-96 ENCLOSURE I ENCLOSURE I Dollarsin millions Schedule Originalcost Cost at Currentcost Projectnameand constructionline item numbed estimate Finalcost tenination estimate RelativisticHeaveIon Collider(91-G-300) $497.1 $616.5 ReplacementHigh-LevelWasteEvaporator(69-D-174) $46.7 $154.1 e RichlandEnvironmental RestorationProiect $21,660.0 RockyFlats Environmental TechnologySite Environmental Restoration Project SavannahRiverSite Environmental RestorationProject SecurityEnhancement, PantexPlant (86-D-123) $110.0 $130.0 SolidWasteOperationsComplex(94-D-41 1y $290.3 NIA UraniumMill TailingsRemedialAction--Ground WaterRestoration $777.0 $574.0 UraniumMill TailingsRemedialAction--Surface Project $992.5 $1,349.0 WeldonSpringRemedialActionProject $357.7 $665.0 YuccaMountainSite Characterization Proiectk $3,200.0 $4,300.0 Legend N/A = Cost or scheduleinformationnot availableor not yet developed Note: All costs,unlessotherwisespecified,are “totalprojectcosts.”The cost datawere obtainedfrom initialbudgetsubmissions, finalcost reports,and otherdata providedby the Departmentof Energy(DOE). “Projectsthat are not fundedas constructionline itemsdo not have projectnumbers. qhese amountsrepresentthe project’s“totalestimatedcost,”which includescostsfor such thingsas land,engineering,design,and construction,Othercosts,such as researchand development,conceptualdesign,start-up,and initial training,are not available. 7he MonitoredRetrievableStorageProjectwas terminated;however,portionsof the projectwere continuedand have now beencombinedwith otheractivitiesinto the CivilianRadioactiveWasteManagementStrategicSystem. GAO/RCED-97-85RDOE’s MSAs, 1980-96 ENCLOSURE I ENCLOSURE I dTheterminationactivitiesfor the SuperconductIng Super Colliderare not yet complete.The cost at terminationfor this projectis basedon data throughfiscalyear 1996. ‘DOE’soriginaland/orcurrentcost estimatesfor theseenvironmentalrestoration projectsdo not estimatecoststhroughtheircompletion. ‘DOE is no longerinvolvedin this project;however,the U.S. EnrichmentCorporationhas fundingresponsibility for AVLIS’development, and its directorsmay take actionto furtherdevelopand commercializethis technology. ‘The FacilitiesCapabilityAssuranceProgramconsistsof a numberof differentsubprogramsintendedto updateand maintainDOE’snuclearweaponsproductionfacilities. The projectwas expectedfo be fundedat a levelof $150million annuallyuntil the deficienciesat the DOE facilitiesare identifiedand corrected.Consequently, the projectdoesnot havean originalcost estimateor endingdate. hThecurrentcostestimatefor PhaseII, NuclearWeaponsResearch,Development, and TestingFacilitiesRevitalization, was reducedbecauseone subproject-theDualAxis Radiographic HydrotestFacility--wasestablishedas a separate project. The estimatedcost of this facilityis $85.6million. ‘The currentcost estimatefor PlantwideFire Protection,PhasesI and II, reflectsa plannedreductionin this project’sscope. ‘This projectis beingdividedinto three separatesubprojects,of whichone is currentlyunderconstruction,one is on hold,and one may be includedin a privatizationcontract. For thesereasons,DOE is not maintainingcost and schedule data for this project. “The YuccaMountainprojectinvolvesonly site characterization and not the actualconstructionof a wasterepository.Accordingly,the projectis consideredcompletewith the submissionof an applicationto the NuclearRegulatory Commissionfor authorization to constructa nuclearwaste repository.The originalcost and schedulereflecta 1965estimateby DOE. In Jan. 1992,the Secretaryof Energy’sEnergySystemsAcquisitionAdvisoryBoardapproveda $6.3 billionestimatefor the YuccaMountainproject. Officialsfrom DOE’sOfficeof CivilianRadioactiveWasteManagement considerthis estimateto be Ihe project’soriginalcost estimate. (141029) GAO/RCED-97-86RDOE'sMSAs,1980-96 Ordering Information The first copy of each GAO report and testimony is free. Additional copies are $2 each. Orders should be sent to the following address, accompanied by a check or money order made out to the Superintendent of Documents, when necessary. 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Department of Energy: Major System Acquisitions From 1980 Through 1996
Published by the Government Accountability Office on 1997-03-04.
Below is a raw (and likely hideous) rendition of the original report. (PDF)