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Audit Report: IG-0450

July 26, 1999

The U.S. Department of Energy's Non-Nuclear Materials Inventory at the Kansas City Plant

The Department of Energy (Department) maintains the majority of non-nuclear components of nuclear weapons at its Kansas City Plant. Allied Signal Federal Manufacturing and Technologies (Allied Signal) manages and operates the plant, while the Albuquerque Operations Office and its Kansas City Area Office are responsible for administering the contract with Allied Signal. In recent years, the United States has significantly reduced the number of weapons maintained in the stockpile. As a result, a large quantity of non-nuclear materials accumulated at the Kansas City Plant. The value of the inventory, as of October 1998, was $575 million. The objective of this audit was to determine if Department and contractor officials were identifying and disposing of non-nuclear materials inventory for which there was no current or future designated need.