October 20, 2014

Corrective Action Systems at the Pantex Plant

The National Nuclear Security Administration's (NNSA) Pantex Plant (Pantex), formerly managed and operated by Babcock & Wilcox Technical Services Pantex, LLC (B&W Pantex), serves as the primary site for assembly and disassembly of nuclear weapons.  In January 2013, NNSA awarded a consolidated management and operating contract for Pantex and NNSA's Y-12 National Security Complex to Consolidated Nuclear Security, LLC (CNS).  The 10-year contract took effect on July 1, 2014, and is valued at approximately $23 billion.

Given the importance of ensuring safe and effective operations at Pantex, we initiated this audit to determine whether corrective action systems were operating effectively to meet established requirements.  Due to the recent contractor transition and the fact that the new contractor had not decided whether to replace the existing corrective action systems, our review was limited to the systems in place under the prior management of Pantex.

We found that B&W Pantex had generally implemented corrective action systems that provided for the reporting, documenting, and tracking to resolution of findings, weaknesses, and significant quality issues.  However, we identified certain aspects of the program that needed improvement; issues that should be considered by CNS as corrective action systems under the new contract are implemented.

Because of the recent transition of the contract to CNS, we are not making formal recommendations.  However, we made suggestions to the Manager, National Nuclear Security Administration Production Office to direct CNS to ensure employees fully understand requirements for corrective action systems and staffing is adequate for the Employee Concerns Program.

Topic: Management and Administration