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Monday, October 7th, 2024

NNSA needs to develop cost estimates, schedule for new uranium processing project, GAO says

A complete scope of work is needed to develop timely cost and schedule information for the National Nuclear Security Administration’s (NNSA) uranium program, according to a recently published report from the U.S. Government Accountability Office (GAO).

As part of the FY2013 National Defense Authorization Act (NDAA), GAO was tasked with periodically assessing the NNSA’s proposed uranium processing facility (UPF). For its report, GAO examined the status of NNSA’s efforts to develop a revised scope of work, cost estimates, and schedule of the UPF project as well as the extent to which it has developed an integrated master plan.

Beginning in 2004, the NNSA started developing plans for a new UPF in order to consolidate capabilities currently housed in deteriorating facilities. However, cost estimates began rising dramatically, ranging from $4.2 billion to $6.4 billion in 2012. To address those concerns, the NNSA altered its approach in 2014 to reduce the scope of the new UPF and move some uranium processing capabilities into existing buildings.

According to the NNSA documents, the administration has made progress in developing its revised scope of work, cost estimates and schedule for the project. As of May, it had also developed and approved a revised formal scope of work, cost and schedule baseline estimates for four of seven subprojects into which the revised UPF plan is divided.

However, the report found that the NNSA has not developed a complete scope of work, nor did it produce a full life cycle cost estimate or integrated master schedule and provided no timetable for doing so. Particularly, it has not developed the scope of work for repairs and upgrades to existing buildings in its plans to house some uranium processing capabilities.

The findings were problematic for the NNSA due to the fact that in previous program reviews in which no life cycle cost estimates were given, the agency could not ensure its estimates captured all relevant expenses, which resulted in cost overruns.

Without setting a time frame to complete the scope of work and the prepare a life cycle cost estimate, GAO said, the NNSA does not have reasonable assurances that decision makers will have timely access to essential program management information, which poses a risk for unforeseen cost escalation and delays.

To address the issues found in its report, GAO recommended that the NNSA set a time frame for completing the scope of work, life cycle cost estimates, and integrated master schedule for the overall UPF program.