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B-164105 1 (1973-06-29)

handle is hein.gao/gaobaagdc0001 and id is 1 raw text is: 




                     UNITED STATES GENERAL ACCOUNTING OFFICE
     SWASHINGTON, D.C. 20548


RESOURCES AND ECONOMIC
DEVELOPMENT DIVISION

                                                                         / ~
       B- 16410 5                       L M06 0           J UN 2 9 19 3



       The Honorable Dixy Lee Ray

       Chairman, Atomic Energy Commission

       Dear Dr. Ray:

           We have reviewed the policies and procedures of the Atomic Energy
      Commission (AEC) for keeping AEC management and the Congress advised
      of chan   cinost and schleduleestimates for the construction of the
      FastFlux Test Facil~y - fTF). We made this   reviw becuse 'FTF is
      the highest priority project Muydex _thqriuee1r
      Re4qtQ3o:'(LMFBR rogram and because FFTF has experienced significant
      cost and schedule changes since fiscal year 1968 when the Congress
      authorized its construction.

           FFTF will test fuels and materials for fast breeder reactors.
      According to AEC, FFTF is the focal point and lead plant in the LMFBR
      program and provides the needed pace and relevance to the development
      of LMFBR technology and engineering.

           AEC's Division of Paet.-a          n_vRmn1nd Richland,
      Washington, Operations Office are responsible for constructing FFF.
      The Division of Construction (CONS) is responsible for independently
      reviewing, and informing AEC management of, the progress of all AEC
      construction projects, including FFTF.

           In July 1967 AEC estimated that FFTF would cost $87.5 million and
      would be completed by April 1973. In June 1970 AEC increased the
      total estimated cost to $102.8 million and extended the scheduled com-
      pletion date to June 1974. In December 1972 AEC increased the total
      estimated cost to $187.8 million and extended the scheduled completion
      date to June 1975.

           In March 1973 the Director, Division of Reactor Research and
      Development, testified before the Joint Committee on Atomic Energy
      that (1) the most recent estimates had been based on an analysis of
      cost estimates ranging from $185 million to $220 million and on comple-
      tion dates ranging from June 1975 to May 1976 and (2) all project par-
      ticipants would have to continue to improve their performance to
      realize these estimates.




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