Nuclear Waste: Department of Energy's Hanford Tank Waste Project--Schedule, Cost, and Management Issues
RCED-99-13
Published: Oct 08, 1998. Publicly Released: Oct 08, 1998.
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Highlights
Pursuant to a congressional request, GAO provided information on the Department of Energy's (DOE) revised contracting approach for its Hanford Tank Waste Project, focusing on: (1) how DOE's current approach has changed from its original privatization strategy; (2) how this change has affected the project's schedule, cost, and estimated savings over conventional DOE approaches; (3) what risks DOE is now assuming with this change in approach; and (4) what steps DOE is taking to carry out its project oversight responsibilities. DOE contracted with BNFL, Inc. to treat about 10 percent of Hanford's tank waste.
Recommendations
Matter for Congressional Consideration
| Matter | Status | Comments |
|---|---|---|
| Congress may wish to require DOE to include in its annual status report on privatization contracts: (1) the results of BNFL's technology demonstration and testing using Hanford's waste; (2) a reassessment of the cost-effectiveness of the proposed approach including the results of DOE's analysis of different financing alternatives; and (3) DOE's overall preparedness to effectively oversee the project. |
Closed – Not Implemented
|
Although the 106th Congress has not required DOE to report on the status of BNFL's technology testing, the cost-effectiveness of the project, or DOE's overall preparedness to oversee the project, DOE planned to do so in its annual report to Congress in July 2000. However, DOE terminated BNFL's contract in July 2000 and, therefore, did not submit a report to Congress on the project. In early September 2000, DOE initiated another procurement to select a new contractor for the project. DOE intends to use a more traditional cost-reimbursement contracting mechanism. |
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Energy | The Secretary of Energy should take immediate action to fully implement the Department's management and oversight plan for the Hanford tank waste project, including ensuring that: (1) the oversight team is fully staffed with the expertise required; and (2) adequate funding is available to provide the site support services called for in the contract. |
Closed – Not Implemented
DOE agreed with GAO's recommendation and implementation was underway. For example, DOE established and staffed the Office of River Protection which strengthened DOE's oversight of the project. However, the second part of this recommendation is no longer applicable because in July 2000 DOE terminated its tank waste contract with BNFL Inc. (BNFL) due to significant and unacceptable cost growth in BNFL's project cost estimate, deficiencies in project design deliverables, and management problems. As a result, there is currently no commitment to provide support services under the contract. In September 2000 DOE issued a new request for proposals to begin the process of selecting a new tank waste contractor.
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Contract termsCost controlFixed price contractsHazardous substancesManagement and operating contractsNuclear waste managementNuclear waste storagePrivatizationRadioactive waste disposalWaste treatment