Analysis of the Department of Energy's Clinch River Breeder Reactor Cost Estimate
RCED-83-74: Published: Dec 10, 1982. Publicly Released: Dec 10, 1982.
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In response to a congressional request, GAO reviewed the accuracy of the Department of Energy's (DOE) most recent cost estimate for the Clinch River Breeder Reactor (CRBR) project.
In reviewing the CRBR project cost estimate, which has escalated from the authorized $699 million to a present estimate of $3.6 billion, GAO found no basis to question the appropriateness of the most recent cost estimates for plant construction and major reactor and nonreactor components. However, GAO found that DOE estimates did not include the cost of plutonium needed to fuel the reactor, and the range of uncertainty associated with other items was significant. DOE has recently stated that CRBR will generate more than $8 billion in net revenues over its operating life of 25 years, after a 5-year demonstration period. However, GAO has found that project revenues could be as much as $212 million lower than the DOE estimate for the 5-year demonstration period and changes to certain assumptions could produce a revenue loss of approximately $2 billion over the 25-year period. Less optimistic assumptions could reduce the revenue estimate by as much as $3.6 billion. In addition, GAO had questions concerning the appropriateness of the inflation rate and the size of the contingency allowance which DOE used in developing the cost estimates. Because CRBR costs and revenues are based on numerous assumptions about events far into the future, the margin of error in cost estimates that contain many assumptions and that are based on future events could be significant. However, GAO stated that, since CRBR is a research and development project, project cost and revenue estimates should not be the dominant consideration in funding decisions.
Sep 8, 2017
Modernizing the Nuclear Security Enterprise:
A Complete Scope of Work Is Needed to Develop Timely Cost and Schedule Information for the Uranium ProgramGAO-17-577: Published: Sep 8, 2017. Publicly Released: Sep 8, 2017.
Sep 5, 2017
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Plutonium Disposition:
Proposed Dilute and Dispose Approach Highlights Need for More Work at the Waste Isolation Pilot PlantGAO-17-390: Published: Sep 5, 2017. Publicly Released: Sep 5, 2017.
May 26, 2017
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Commercial Nuclear Waste:
Resuming Licensing of the Yucca Mountain Repository Would Require Rebuilding Capacity at DOE and NRC, Among Other Key StepsGAO-17-340: Published: Apr 26, 2017. Publicly Released: May 26, 2017.
May 25, 2017
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Nuclear Regulatory Commission:
Efforts Intended to Improve Procedures for Requesting Additional Information for Licensing Actions Are Under WayGAO-17-344: Published: Apr 25, 2017. Publicly Released: May 25, 2017.
May 24, 2017
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Department of Energy:
Continued Actions Needed to Address Management ChallengesGAO-17-651T: Published: May 24, 2017. Publicly Released: May 24, 2017.
May 17, 2017
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Offshore Oil and Gas Resources:
Information on Infrastructure Decommissioning and Federal Financial RiskGAO-17-642T: Published: May 17, 2017. Publicly Released: May 17, 2017.
May 3, 2017
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Nuclear Waste:
Opportunities Exist to Reduce Risks and Costs by Evaluating Different Waste Treatment Approaches at HanfordGAO-17-306: Published: May 3, 2017. Publicly Released: May 3, 2017.
May 1, 2017
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Department of Energy:
Use of Leading Practices Could Help Manage the Risk of Fraud and Other Improper PaymentsGAO-17-235: Published: Mar 30, 2017. Publicly Released: May 1, 2017.
Apr 26, 2017
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National Nuclear Security Administration:
Action Needed to Address Affordability of Nuclear Modernization ProgramsGAO-17-341: Published: Apr 26, 2017. Publicly Released: Apr 26, 2017.
Apr 11, 2017
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Nuclear Security:
DOE Could Improve Aspects of Nuclear Security ReportingGAO-17-239: Published: Apr 11, 2017. Publicly Released: Apr 11, 2017.
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