November 21, 1996

Special Report on the Audit of the Management of Department of Energy Construction Projects

The Department's Fiscal Year 1996 budget submission of about $18 billion included approximately $1.1 billion for construction projects. Ensuring that these construction
projects meet bonafide existing or future Departmental needs becomes increasingly important as the Department's mission evolves and as it faces additional budget reductions. To
illustrate, as recently as November 12, 1996, the Department issued the final Programmatic Environmental Impact Statement for the Stockpile Stewardship and Management Program. This statement, in which the Department examined the future of three weapons laboratories, four industrial plants and the Nevada test site, included recommendations regarding the sizing of these facilities. Specifically, the statement treated the significant downsizing of components of the Y-12 Plant, Pantex, and the Kansas City Plant as preferred options.