Energy risks prematurely approving technologies for uranium processing, GAO says

Auditors at the Government Accountability Office are concerned the Energy Department will approve complex and questionable new technologies for use in the Uranium Processing Facility, a project that will replace a deteriorating and outdated Cold War-era plant in Oak Ridge, Tenn.

The National Nuclear Security Administration is developing 10 new technologies to install in the new facility, but GAO reported last week that "NNSA may lack assurance that all technologies will work as intended before making key project decisions in accordance with best practices and our prior recommendations."

The UPF will modernize and consolidate enriched uranium processing activities now handled by the Y-12 National Security Complex, which was built in the 1940s and 1950s.

"If critical technologies do not work as intended, project officials may have to revert to existing or alternate technologies, which may result in higher costs and schedule delays," GAO said. Auditors were specifically concerned NNSA officials will make critical design decisions and begin construction before they are reasonably assured the technologies will work as planned.

Like other agencies with similarly complex technology development programs, Energy uses a systematic approach -- Technology Readiness Levels 1-9, with TRL 9 meaning fully proven -- to measure technical maturity and risk. Energy guidance recommends technologies achieve TRL 6, where a prototype is demonstrated in a relevant environment, before approval of a formal cost and schedule baseline for the project. But NNSA officials expect to make such decisions before all of the technologies reach TRL 6, auditors found.

Moreover, Energy does not follow best practices other agencies have adopted regarding TRL levels, auditors said. For example, Defense requires technologies to be at TRL 7, where a prototype is demonstrated in an operational environment, before production and deployment of a technology can begin. The Energy Department requires only that TRL 6 level be achieved.

With six of the 10 new technologies slated for the Uranium Processing Facility not expected to reach TRL 7 before construction begins in December 2013, GAO said NNSA won't necessarily be assured all technologies will work as intended, potentially forcing design changes that could drive up costs.

Energy mostly concurred with GAO's findings but noted it has taken a number of steps to reduce risk in the project. Officials said the department had determined that achieving TRL 6 for the new technologies would provide sufficient assurance of success to begin construction.