oversight

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)

      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
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