Jun 2, 2008

GAO Findings on Pit Manufacturing

GAO has released a Report to the Subcommittee on Energy and Water Development, Committee on Appropriations, House of Representatives titled NUCLEAR WEAPONS: NNSA Needs to Establish a Cost and Schedule Baseline for Manufacturing a Critical Nuclear Weapon Component.
What GAO Found
NNSA achieved its major goals for reestablishing its pit manufacturing capability at LANL as defined by the agency in 2002. Specifically, NNSA’s goals were to create a capability to manufacture 10 pits per year starting in 2007 and to deliver a single W88 war reserve pit to the stockpile in 2007. War reserve pits must meet stringent specifications, while other types of pits, such as pits destructively tested for production quality control, may not meet the same standards. NNSA estimated that this effort would cost about $1.55 billion for fiscal years 2001 through 2007. According to NNSA, LANL produced 11 pits in 2007, eight of which were W88 war reserve pits, and spent about $1.29 billion for fiscal years 2001 through 2007. However, GAO found that NNSA did not establish clear, consistent goals for the number of W88 war reserve pits it planned to produce. Specifically, some NNSA documents, including budget requests to Congress, called for delivering 10 W88 war reserve pits per year starting in 2007. In addition, NNSA’s cost estimate did not include estimates for a variety of activities that directly and indirectly supported the pit manufacturing mission at LANL between 2001 and 2007. These support activities, which included scientific experiments and facility operations and maintenance, totaled over $1 billion.

Because of three major constraints on pit manufacturing operations at LANL, NNSA will not be able to substantively increase its current pit manufacturing capacity for the foreseeable future. Specifically, GAO found that LANL’s building for performing analytical chemistry, which deals with the separation and identification of the components in a pit sample, has major operational and structural limitations. LANL’s ability to store pits and associated waste is also constrained by limited vault storage space. Finally, a lack of available floor space in LANL’s main nuclear facility limits its ability to install a large scale, efficient production line for manufacturing pits.

NNSA’s plans for future pit manufacturing are still being developed and, as a result, no reliable cost estimates exist. Originally, NNSA and the Department of Defense (DOD) had planned to develop the capability to produce RRW pits beginning about 2014, pending the outcome of a RRW design definition and cost study in 2008. However, in fiscal year 2008 all of NNSA’s RRW funding was eliminated. While NNSA and DOD continue to support the RRW program, in the short run, NNSA plans to maintain the existing pit manufacturing capability at LANL. Over the long term, NNSA is planning, with DOD’s concurrence, to upgrade the existing LANL facility to achieve a production capacity of up to 80 pits per year. However, NNSA has not established a cost and schedule baseline to support its projected effort.
[Click here to download the full report.]

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12 comments:

Anonymous said...

Pit Costs Understated
- John Fleck, Albuquerque Journal, June 2, 2008

Federal officials and Los Alamos National Laboratory have significantly understated the cost of making plutonium bomb parts at the lab, according to a report released today by the GAO.

Key bit:

- NNSA’s cost estimate did not include estimates for a variety of activities that directly and indirectly supported the pit manufacturing mission at LANL between 2001 and 2007. These support activities, which included scientific experiments and facility operations and maintenance, totaled over $1 billion.

.............

Well, there you go. The cost of making pits has been badly under estimated by NNSA. Who would have thunk it?

I guess NNSA can now proceed with ordering LANS to get rid of staff to help pay for more production work. Are we having fun, yet?

Anonymous said...

The taxpayer is being misled by NNSA and LANS/LANL. Don't just try pinning this on NNSA. How else do we keep the money flowing? A billion here, a billion there and we keep our retirement prospects secure. What else is there? National security? Yea right!

Anonymous said...

To quote another:

"We are not only screwing up the present. We are plowing under the future."

The Nuclear Weapons business and LANL's role are over. We have a new Administration coming...enjoy the results.

Anonymous said...

Why does this tidbit surprise anyone. For years, the costs to run TA-55 have gone up significantly while the RTBF budget has remained relatively flat. The programs have been hit hard (tax-wise) to make up for the shortfalls in RTBF budgets due to poor infrastructure planning and FOD empire building.

Anonymous said...

$300,000,000 per pit? Wow, I know a guy in Mianyang who can provide 'em for 1/2 that much (to recent US specifications according to my friend Dr. Lee).

A. Q. Khan

(And I thought NIF was ridiculous)

Anonymous said...

Just raise the cost of an FTE to $1 million and the problem will be cured. Oh, and be sure to add in a bunch of expensive new managers to boost the overhead and give cover for the figures involved in boosting that FTE rate. Problem solved.

Anonymous said...

It isn't due to "poor infrastructure planning", it is poor response in funding the planning that was done. The problems have been known, defined, baselined (cost and schedule) and funds requested year after year for over a decade. The response of the budget authorities is to ignore it.

Anonymous said...

So responding to the person who said there is not poor infrastructure planning. TA-55 was notified Friday by our stand-up minutes that the He and Ar service will be shut down starting Friday and into next week due to lack of funding. Apparently, facilities needs $900K to keep the gas services going until the end of this FY.

1) Many processes rely on He. Many GBs require Ar to stay inert.
Seems like a poor way to communicate this important aspect.

2) Went down this road with He several months ago due to price escalations. Everyone thought it was taken care of?

Sounds like poor planning to me.

Anonymous said...

Hmmm. Sounds like Bob Grace and Martin Aguilera were put in charge of TA-55 recently.

Anonymous said...

"Oh, and be sure to add in a bunch of expensive new managers ....."

Which brings us to the new post re: MM memo on reorganization.

Anonymous said...

"Went down this road with He several months ago due to price escalations. Everyone thought it was taken care of?" (5:10 PM)


Inflation costs are eating heavily into LANL's budget. A flat budget doesn't cut it when many material costs, medical expenses, etc, are spiraling upward at rates of 8% or more.

The bottom line is LANL is facing another budget crisis. LANS isn't saying anything about this to the working staff just yet. It will be interesting to watch how they deal with this inflation issue. It's a re-occurring "cost" that is not going away anytime soon.

Anonymous said...

Flat budget, flat raises, you are correct. Ain't cutting it anymore. I found one my old pay stubs from 5 years ago. As a TSM, my take home pay has gone up $400 in 5 years. 2% raises aren't even keeping up with the cost of inflation, health care premium increases, cost of living expenses, etc, etc.

Helium costs have gone up exponentially and they (facilities) expect the programs to write a check to cover the costs. Program $$ have gone down. LANL costs have gone up (both labor and non-labor). RTBF budgets are flat.

Its time to make hard decisions OR the alternative, the programs will have to eat the costs, which they already are by paying more in facility taxes. Just keep hitting the programs until we no longer have programs.

Ugh, the whole thing is totally depressing...