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GAO-18-122R 1 (2017-11-15)

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GAO U.S. GOVERNMENT ACCOUNTABILITY OFFICE
441 G St. N.W.
Washington, DC 20548



November 15, 2017


Congressional Committees

Plutonium Disposition: Observations on DOE and Army Corps Assessments of the Mixed
Oxide Fuel Fabrication Facility Contract

Plutonium-a man-made, radioactive element produced by irradiating uranium in nuclear
reactors-poses a risk of proliferation and risks to human health and the environment if not
managed safely. In 1997, the Department of Energy (DOE) established the Plutonium
Disposition program to address the disposition of weapons-grade plutonium. As part of the
program, the National Nuclear Security Administration (NNSA) began constructing the Mixed
Oxide Fuel Fabrication Facility (MOX facility) in 2007 at DOE's Savannah River Site in South
Carolina.1 MOX fuel is a mixture of plutonium and uranium oxides that can be used in modified
commercial nuclear reactors. If MOX fuel is used in a reactor, the plutonium in the fuel is
transformed into radioactive spent fuel similar to the spent fuel produced in commercial
reactors, which prevents it from being reused in a nuclear weapon.

In 2007, DOE formally approved a cost estimate of $4.8 billion for construction of the MOX
facility, with a scheduled completion date of September 2016. By 2012, NNSA had spent about
$3.4 billion on the facility, and the contractor estimated that it needed approximately $4 billion
more to complete construction by 2019. In August 2016, in response to a provision in the
National Defense Authorization Act for Fiscal Year 2016,2 DOE developed a revised cost
estimate of approximately $17.2 billion to complete construction of the MOX facility by 2048. We
reported in September 2017 that the DOE construction cost estimate did not fully meet all of the
best practices in the GAO cost-estimating guide, but it substantially met all four characteristics
of a high-quality, reliable cost estimate (comprehensive, well documented, accurate, and
credible) and therefore could be considered reliable.3

Starting with its fiscal year 2014 budget request-submitted in April 2013-DOE proposed
slowing down work on the MOX facility while it assessed alternative approaches for plutonium
disposition. In April 2014, DOE completed an analysis of plutonium disposition options that
identified an alternative dilute and dispose approach that DOE believes could significantly
reduce the life-cycle cost of the Plutonium Disposition program.4 Under this approach, plutonium

1NNSA is a separately organized agency within DOE that is responsible for the management and security of the
nation's nuclear weapons programs.
2pub. L. No. 114-92, § 3119, 129 Stat. 726, 1197 (2015).
3A cost estimate is considered reliable if the overall assessment ratings for each of the four characteristics are
substantially or fully met. GAO, Plutonium Disposition: Proposed Dilute and Dispose Approach Highlights Need for
More Work at the Waste Isolation Pilot Plant, GAO-1 7-390 (Washington, D.C.: Sept. 5, 2017).
4A life-cycle cost estimate provides an exhaustive and structured accounting of all resources and associated cost
elements required to develop, produce, deploy, and sustain a particular program, and it encompasses all past (or
sunk), present, and future costs for every aspect of the program, regardless of funding source.


GAO-18-122R Plutonium Disposition


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