The Department of Energy's Los Alamos National Laboratory is a government-owned,
contractor-operated facility that is part of the National Nuclear Security Administration's
(NNSA) nuclear weapons complex. Los Alamos' primary mission is to ensure the safety,
security and reliability of the Nation's nuclear deterrent force. To meet its mission, Los Alamos employees and subcontractors operate in close proximity to or in contact with special nuclear materials, explosives and hazardous chemicals. NNSA's Los Alamos Site Office is responsible for overseeing the operations of Los Alamos. Since June 1, 2006, Los Alamos National Security, LLC, has managed and operated Los Alamos under contract with NNSA.
The Department considers safety an integral part of its mission, operating in compliance with nuclear safety requirements of Title 10 of the Code of Federal Regulations Part 830 (10 CFR 830), Nuclear Safety Management. The Regulation, among other things, requires contractors to complete, and update as conditions change, Documented Safety Analyses (DSA) that identify hazards associated with relevant work processes and to design and implement controls over such hazards. Further, under DOE Order 414.1C, Quality Assurance, contractors are required to develop and implement a Quality Assurance Program to prevent or detect safety or other problems
in the workplace.
The DSA and Quality Assurance requirements are critically important and are designed, when properly implemented, to protect workers, the public and facilities from the potentially devastating effects of nuclear-related accidents. We initiated this audit to determine whether Los Alamos had fully implemented the required nuclear safety management regime.
contractor-operated facility that is part of the National Nuclear Security Administration's
(NNSA) nuclear weapons complex. Los Alamos' primary mission is to ensure the safety,
security and reliability of the Nation's nuclear deterrent force. To meet its mission, Los Alamos employees and subcontractors operate in close proximity to or in contact with special nuclear materials, explosives and hazardous chemicals. NNSA's Los Alamos Site Office is responsible for overseeing the operations of Los Alamos. Since June 1, 2006, Los Alamos National Security, LLC, has managed and operated Los Alamos under contract with NNSA.
The Department considers safety an integral part of its mission, operating in compliance with nuclear safety requirements of Title 10 of the Code of Federal Regulations Part 830 (10 CFR 830), Nuclear Safety Management. The Regulation, among other things, requires contractors to complete, and update as conditions change, Documented Safety Analyses (DSA) that identify hazards associated with relevant work processes and to design and implement controls over such hazards. Further, under DOE Order 414.1C, Quality Assurance, contractors are required to develop and implement a Quality Assurance Program to prevent or detect safety or other problems
in the workplace.
The DSA and Quality Assurance requirements are critically important and are designed, when properly implemented, to protect workers, the public and facilities from the potentially devastating effects of nuclear-related accidents. We initiated this audit to determine whether Los Alamos had fully implemented the required nuclear safety management regime.
Review of the Department of Energy's Plan for Obligating Remaining Recovery Act Contract and Grant Funding
Report OAS-RA-10-15, Review of the Department of Energy's Plan for Obligating
Remaining Recovery Act Contract and Grant Funding, was issued to the Secretary and the
Department's management on August 4, 2010.
On August 5, 2010, the Department announced the award of the so-called "FutureGen 2.0"
contract, using $1 billion of American Recovery and Reinvestment Act funding. Despite
our request, specific information pertinent to this action was not provided to the Office of
Inspector General prior to release of the audit report. These circumstances are described on
page 4 of the report in the paragraph referring to the Fossil Energy Program. The data is
highly relevant to the subject of Report OAS-RA-10-15.
Remaining Recovery Act Contract and Grant Funding, was issued to the Secretary and the
Department's management on August 4, 2010.
On August 5, 2010, the Department announced the award of the so-called "FutureGen 2.0"
contract, using $1 billion of American Recovery and Reinvestment Act funding. Despite
our request, specific information pertinent to this action was not provided to the Office of
Inspector General prior to release of the audit report. These circumstances are described on
page 4 of the report in the paragraph referring to the Fossil Energy Program. The data is
highly relevant to the subject of Report OAS-RA-10-15.
Resolution of Questioned, Unresolved and Potentially Unallowable Costs Incurred in Support of the YuccaMountain Project
The Nuclear Waste Policy Act Amendments of 1987 designated Yucca Mountain in
Southwestern Nevada as the site for a national geologic repository for high-level nuclear waste.
The Department of Energy assigned management of the program to the Office of Civilian
Nuclear Waste Management (OCRWM). Bechtel SAIC Company, LLC (BSC) was the
management and operating contractor for OCRWM's Yucca Mountain Project from April 1,
2001, until its contract with the Department ended on March 31, 2009. In early 2009, the
Department indicated that it intended to terminate the Project and is moving to shut down all
activities by September 30, 2010.
Southwestern Nevada as the site for a national geologic repository for high-level nuclear waste.
The Department of Energy assigned management of the program to the Office of Civilian
Nuclear Waste Management (OCRWM). Bechtel SAIC Company, LLC (BSC) was the
management and operating contractor for OCRWM's Yucca Mountain Project from April 1,
2001, until its contract with the Department ended on March 31, 2009. In early 2009, the
Department indicated that it intended to terminate the Project and is moving to shut down all
activities by September 30, 2010.
Severance Repayments at the Savannah River Site
The Department of Energy’s (Department) mission has evolved in recent years, which
necessitated changes in the contractor workforce requirements. In 1993, Congress
approved Section 3161 of the National Defense Authorization Act (Act), which mandates
that if a change in the workforce is necessary, the Department must develop a plan for
workforce restructuring that will minimize the impact on the affected employees and the
surrounding communities. Since the passage of the Act, the Department has managed
numerous contractor workforce restructurings that resulted in a reduction in the
Department’s contractor workforce. For example, workforce restructuring efforts in
Fiscal Years 2005, 2007 and 2009 at the Savannah River Site (Site) reduced the
contractor workforce by 1,184 employees.
The Office of Inspector General (OIG) received a hotline allegation that employees of the
Washington Savannah River Company (WSRC), a former management and operating
contractor, had inappropriately received severance payments under the 2007 Savannah
River workforce restructuring. It was alleged that these employees were subsequently
rehired to perform in the same or similar functional job areas but were not required to
repay severance money. The contractual agreement between the Department and WSRC
prohibited employees from receiving severance pay if they were offered employment at
the Site, performing the same or substantially the same type of work with comparable pay
and benefits, by any WSRC contractor or subcontractor. At the same time, the OIG’s
Office of Investigations was in the process of reviewing a similar allegation received
from Savannah River Operations Office (SRO) officials. The OIG’s Office of
Inspections initiated an inspection to consolidate the information and review the facts and
circumstances regarding both allegations. Our efforts focused on the Fiscal Year 2007
workforce restructuring which cost $9.7 million and resulted in the reduction of 312
contractor employees.
necessitated changes in the contractor workforce requirements. In 1993, Congress
approved Section 3161 of the National Defense Authorization Act (Act), which mandates
that if a change in the workforce is necessary, the Department must develop a plan for
workforce restructuring that will minimize the impact on the affected employees and the
surrounding communities. Since the passage of the Act, the Department has managed
numerous contractor workforce restructurings that resulted in a reduction in the
Department’s contractor workforce. For example, workforce restructuring efforts in
Fiscal Years 2005, 2007 and 2009 at the Savannah River Site (Site) reduced the
contractor workforce by 1,184 employees.
The Office of Inspector General (OIG) received a hotline allegation that employees of the
Washington Savannah River Company (WSRC), a former management and operating
contractor, had inappropriately received severance payments under the 2007 Savannah
River workforce restructuring. It was alleged that these employees were subsequently
rehired to perform in the same or similar functional job areas but were not required to
repay severance money. The contractual agreement between the Department and WSRC
prohibited employees from receiving severance pay if they were offered employment at
the Site, performing the same or substantially the same type of work with comparable pay
and benefits, by any WSRC contractor or subcontractor. At the same time, the OIG’s
Office of Investigations was in the process of reviewing a similar allegation received
from Savannah River Operations Office (SRO) officials. The OIG’s Office of
Inspections initiated an inspection to consolidate the information and review the facts and
circumstances regarding both allegations. Our efforts focused on the Fiscal Year 2007
workforce restructuring which cost $9.7 million and resulted in the reduction of 312
contractor employees.
Allegations Involving the National Nuclear Security Administration’s National Security Vault
One of the primary missions of the NNSA is to ensure the safety and reliability of the
Nation’s nuclear arsenal. NNSA nuclear weapons activities are carried out in a
nationwide complex of Government-owned, contractor-operated sites that include
three national laboratories, a test site, and nuclear weapons production sites. These
facilities provide the necessary research, development and production capabilities to
maintain the reliability, security and safety of nuclear weapons.
Nation’s nuclear arsenal. NNSA nuclear weapons activities are carried out in a
nationwide complex of Government-owned, contractor-operated sites that include
three national laboratories, a test site, and nuclear weapons production sites. These
facilities provide the necessary research, development and production capabilities to
maintain the reliability, security and safety of nuclear weapons.
Management Controls over the Development and Implementation of the Office of Energy Efficiency and Renewable Energy's Performance and Accountability for Grants in Energy System