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Nuclear Waste: Absence of Key Management Reforms on Hanford's Cleanup Project Adds to Challenges of Achieving Cost and Schedule Goals

GAO-04-611 Published: Jun 09, 2004. Publicly Released: Jul 09, 2004.
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Highlights

The Department of Energy's (DOE) Hanford Site in Washington State houses DOE's largest and most complex nuclear cleanup project--treating and preparing for disposal 55 million gallons of high-level radioactive waste. In 2000, DOE awarded an 11-year, $4.3 billion contract to design, construct, and test treatment facilities at Hanford. GAO was asked to review (1) efforts to accelerate the project's completion, (2) implementation on this project of agencywide management reforms, and (3) the challenges resulting from any unimplemented reforms.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Energy The Secretary of Energy should follow more closely DOE's project management order and implementing guidance when acquiring complex nuclear waste treatment plants at Hanford and other DOE sites, especially by avoiding a fast-track, concurrent approach to the design, technology development, construction, and testing of such plants.
Closed – Implemented
DOE is following its project management order and implementing guidance more closely when acquiring complex nuclear waste treatment facilities at Hanford and other DOE sites. In late August 2005, the Secretary of Energy instructed all program offices to follow DOE's order "scrupulously, without exception." However, DOE continued to use a fast-track, design-build approach for the project. By 2006, the project faced a number of technical problems, the cost estimate had risen to over $10 billion, and the schedule had been delayed by 6 years. In an April 2006 testimony before the House Appropriations Subcommittee on Energy and Water Development, we pointed out that DOE's use of a fast-track, design-build approach in its design and construction of the Hanford waste treatment plant had continued to result in problems facing the project. We again recommended that DOE discontinue using a fast-track, design-build approach on the project. On September 8, 2006, DOE sent a letter accepting our recommendation and stated it would discontinue using a fast-track, design-build approach to completing the project. DOE acknowledged that the use of this approach had been a weakness on the project. DOE stated that it would widen the time frame between design and construction to at least 1 year or longer before resuming construction on major facilities. Based on subsequent reviews of the waste treatment plant and other major DOE projects, DOE has discontinued the fast-track, design-build approach for complex, first-of-a-kind facilities.
Department of Energy The Secretary of Energy should develop and provide to Congress a plan that includes an estimate of the costs and time frames needed to treat and dispose of Hanford's and the rest of DOE's high-level tank wastes if the current court ruling is upheld and if a majority of DOE's tank wastes must be disposed of in a high-level waste repository.
Closed – Not Implemented
As of March 31, 2008, DOE stated that the legal landscape shaping DOE's options for disposal of high-level tank waste at Hanford are still being defined. DOE stated that since GAO's recommendation would cost considerable time and effort, DOE believes that it is prudent to wait until the remaining legal uncertainty at Hanford is clarified. DOE expects further clarification before waste treatment begins in Washington State, therefore does not expect further action on this recommendation.

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Topics

Construction contractsConstruction costsContract administrationContract oversightContract performanceCost analysisCost controlFacility constructionNuclear waste disposalNuclear waste managementNuclear waste storagePerformance measuresRadioactive waste disposalRadioactive wastesFederal procurementEnvironmental cleanups