National Nuclear Security Administration

NNSA reaches settlement agreement with MOX Services

November 19, 2019

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Allows agency to move forward with plans for surplus plutonium disposition and plutonium pit production at a more reasonable cost to the taxpayer

WASHINGTON –  The Department of Energy’s National Nuclear Security Administration (DOE/NNSA) has reached a comprehensive settlement agreement with MOX Services and its parent companies to resolve all contract closeout matters pertaining to the Mixed Oxide Fuel Fabrication Facility (MOX) Project at the Savannah River Site in Aiken, South Carolina.

The agreement allows NNSA to move forward with strategic plans to accomplish national security missions at a more reasonable cost to the taxpayer.

Since the decision to terminate the MOX project in 2018, NNSA’s path forward for both surplus plutonium disposition and plutonium pit production has been delayed by a variety of legal disputes with the MOX Project contractor. All of these issues are resolved in the settlement agreement. 

“Now we can fully focus on our proposal to repurpose MOX for plutonium pit production – a capability the United States needs to maintain a safe, secure, and reliable nuclear deterrent,” said Lisa E. Gordon-Hagerty, DOE Under Secretary for Nuclear Security and NNSA Administrator. “And while we move forward with plans to repurpose the MOX facility, NNSA remains committed to removing surplus plutonium from South Carolina using the proven dilute and dispose method.”

The agreement resolves all contract litigation and covers the cost of contract closeout. If continued, the MOX Project would have not been completed until 2048 at a cost of $17 billion.

The comprehensive settlement agreement will resolve all legal issues with the exception of potential claims under the False Claims Act, the Anti-Kickback Act, or for any civil or criminal fraud.