Modernizing the Nuclear Security Enterprise: Opportunities Exist to Better Prepare for Delay in New Uranium Processing Facility

Why This Matters

In 2004, the National Nuclear Security Administration (NNSA) began plans to replace buildings at its Y-12 in Oak Ridge, Tennessee to support processing uranium for nuclear weapons and naval reactor fuel. NNSA expects the new Uranium Processing Facility to be fully operational in 2034. Until then, NNSA will continue using Building 9212, which was built in 1945 and predates modern safety codes.

GAO Key Takeaways

NNSA received approval to re-baseline its Uranium Processing Facility project in December 2024 at a cost estimate of $10.35 billion-adding nearly $4 billion and an 8-year delay to reach full operations.

In January 2023, NNSA identified root causes and factors contributing to the cost increases and schedule delays. For example, NNSA found poor contractor performance, late notice of cost overruns, and limited workforce availability.

NNSA's contractor estimates that it will costs about $463 million to safely continue operations in Building 9212 until 2035-about a year after the new facility is expected to be fully operational. Some NNSA officials acknowledged increasing risks of continuing to rely on this building, which has degrading infrastructure and does not meet modern nuclear safety codes for earthquakes or high-wind events.

NNSA has a comprehensive plan to continue safe operations in other aging buildings that were originally planned for replacement by the new facility but were scoped out of the project in 2012. In contrast, NNSA does not have a comprehensive plan to safely operate Building 9212 to accommodate the new facility's delay. A plan would provide consistent information to better manage tradeoffs and address risks to continued safe operations in Building 9212.

The New Uranium Processing Facility Under Construction at Y-12 National Security Complex, Tennessee

How GAO Did This Study

We reviewed NNSA's 2023 root cause analyses related to project cost and schedule overruns. We analyzed information on the impact of the project delay on NNSA's mission. We conducted a site visit to the Y-12 National Security Complex to observe construction of the new facility and conditions at existing buildings.