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Modernizing the Nuclear Security Enterprise: Opportunities Exist to Better Prepare for Delay in New Uranium Processing Facility

GAO-25-107330 Published: Sep 18, 2025. Publicly Released: Sep 18, 2025.
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Fast Facts

The National Nuclear Security Administration’s project to replace its 80-year-old uranium processing building is nearly $4 billion over budget and 8 years behind schedule. The current building doesn't meet modern safety codes, including for earthquakes or high-wind events.

When completed, the modernized facility will ensure uranium used in nuclear weapons and naval ships can be processed safely and efficiently.

However, we found that NNSA doesn't have a comprehensive, agreed-upon plan to continue safe operation of its aging facility until the new one is ready.

Our recommendation addresses this issue.

Stock photo of a pen on top of a project schedule chart with colored bars and black lines across various date ranges.

Stock photo of a pen on top of a project schedule chart with colored bars and black lines across various date ranges.

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Highlights

Why This Matters

In 2004, the National Nuclear Security Administration (NNSA) began plans to replace buildings at its Y-12 in Oak Ridge, Tennessee to support processing uranium for nuclear weapons and naval reactor fuel. NNSA expects the new Uranium Processing Facility to be fully operational in 2034. Until then, NNSA will continue using Building 9212, which was built in 1945 and predates modern safety codes.

GAO Key Takeaways

NNSA received approval to re-baseline its Uranium Processing Facility project in December 2024 at a cost estimate of $10.35 billion—adding nearly $4 billion and an 8-year delay to reach full operations.

In January 2023, NNSA identified root causes and factors contributing to the cost increases and schedule delays. For example, NNSA found poor contractor performance, late notice of cost overruns, and limited workforce availability.

NNSA’s contractor estimates that it will costs about $463 million to safely continue operations in Building 9212 until 2035—about a year after the new facility is expected to be fully operational. Some NNSA officials acknowledged increasing risks of continuing to rely on this building, which has degrading infrastructure and does not meet modern nuclear safety codes for earthquakes or high-wind events.

NNSA has a comprehensive plan to continue safe operations in other aging buildings that were originally planned for replacement by the new facility but were scoped out of the project in 2012. In contrast, NNSA does not have a comprehensive plan to safely operate Building 9212 to accommodate the new facility’s delay. A plan would provide consistent information to better manage tradeoffs and address risks to continued safe operations in Building 9212.

The New Uranium Processing Facility Under Construction at Y-12 National Security Complex, Tennessee

How GAO Did This Study

We reviewed NNSA’s 2023 root cause analyses related to project cost and schedule overruns. We analyzed information on the impact of the project delay on NNSA’s mission. We conducted a site visit to the Y-12 National Security Complex to observe construction of the new facility and conditions at existing buildings.

Recommendations

We recommend that NNSA establish a comprehensive plan to maintain safe operations in Building 9212 until 2035 or operations are ceased. NNSA concurred and has begun to take action to address our recommendation.

Recommendations for Executive Action

Agency Affected Recommendation Status
National Nuclear Security Administration The NNSA Administrator should direct the Office of Defense Programs to establish a comprehensive plan with relevant stakeholders on actions and related costs to maintain safe operations in Building 9212 until 2035 or when the program operations in the building cease. (Recommendation 1)
Open
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

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Topics

Uranium processingEarned value management systemsContractor performanceUraniumCost and scheduleProject managementNuclear securityCost estimatesEquipment maintenanceConstruction