The award for the largest nuclear facility project completed ahead of schedule and under budget by NNSA goes to a project came in only 1% under budget after spending $40 million in contingency.
In an April 2 2014 National Nuclear Security Administration press release titled, NNSA Receives Secretary’s Award for Project Management Excellence, the Chemistry and Metallurgy Research Building Replacement (CMRR) Radiological Laboratory/Utility/Office Building (RLUOB) Equipment Installation (REI) Project was touted for coming in $2 million under budget.
First, the CMRR is the now-deferred project at Los Alamos, whose third phase Nuclear Facility would have enabled increased plutonium pit production. The RLOUB was the first phase of the CMRR project. The second phase REI is only the “equipment” for the RLOUB.
The press release tells us –
“The REI installed glovebox and other enclosure systems, analytical and test instrumentation equipment, and telecommunications and safeguards/security systems within the RLUOB.”
Also included, but not mentioned in the press release, were a fuel oil storage tank, furniture, and the parking lot.
It looks like NNSA gave the award in part because it could have been worse. With one year left in the 3-year the contract, it was estimated that the project was $8 million over budget. So NNSA put a new team in charge and straightened out their mess-ups and turned it around to a $2 million savings.
The press release tells us –
“The CMRR/RLUOB REI Project is the largest nuclear facility capital asset project completed ahead of schedule and under budget by NNSA.”
The press release also neglects to give the total budget. Our documents show that REI had a total budget $199 million. That makes the $2 million that the REI came in under budget equal to 1% of the total budget.
But our documents also show that there was $41.6 million (26%) contingency included in the $199 total budget. After spending untold millions in design and then estimating the cost of the project, NNSA adds in a large contingency to every project so that it does not go over budget and have to go back to Congress for more money.
Is the REI, which spent $40 million in contingency, really $2 million under budget?
I think not. NNSA must give the public all the facts and figures when it gives glowing appraisals of itself.
Here’s what we have on the REI –
