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EMD-82-37 1 (1982-03-17)

handle is hein.gao/gaobabdba0001 and id is 1 raw text is: 

                  COMPTROLLER GENERAL OF THE UNITED STATES ) 7
                           WASHINGTON D.C. 204


                                               March 17, 1982

B-164105      RSTRCT;.,D- tO  r'dc ',C CUd the neferal
              I CCoUtjIk  office e~c2rA114  ,   ; 1 uj spcitic approval
              by tile Office of Coigra  ios,

The Honorable John D. Dingell
Chairman, Subcommittee on Oversight        RELEASED
  and Investigations
Committee on Energy and Commerce
House of Representatives

Dear Mr. Chairman:

     Subject: While the Clinch River Breeder Reactor
               Steam Generator Contract Could Not Have
               Been Terminated for Default, Many Aspects
               9f the Cqntracting Process Are Question-
               able (EMD-82-3   ..


     Your September 2, 1981, letter asked that we review the tech-
nical outlook for several components of the Clinch River Breeder
Reactor (CRBR)--the Nation's first liquid metal fast breeder re-
actor demonstration plant--and report the results of our review.
Because of significant cost and time frame overruns for one cri-
tical component--the steam generator--you also requested that
we provide an interim report on whether or not the contract for
the CRBR steam generator should be terminated for default. This
report addresses your second concern. We will separately report
on the technical outlook for the steam generator and other CRBR
components.

     As we told your staff in a November 19, 1981, briefing, we
found no basis to support terminating the steam generator con-
tract for default. Furthermore, even if such a basis existed,
the Department of Energy (DOE) could not terminate the contract
for default because it is not a party to the contract. Instead,
DOE contracted with Westinghouse Electric Company for the CRBR
nuclear steam supply system. Westinghouse, in turn, contracted
with General Electric for the steam generating system, and that
company contracted with Atomics International for the steam gen-
erator. General Electric's contract with Atomics International
specifically permits DOE to direct General Electric, through
Westinghouse, to terminate the contract only for the convenience
of the Government.



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