BLUE RIDGE ENVIRONMENTAL DEFENSE LEAGUE
Documents obtained this week by the Blue Ridge
Environmental Defense League (BREDL) indicate
that funding for the Department of Energys
(DOE) Plutonium/MOX fuel program contract1 is
nearly exhausted. According to Modification 13 of
its contract with Duke Cogema Stone & Webster
(DCS), DOE has already obligated eight-six
percent (86%) of the total estimated cost for
contract performance (Figure 1)2.
BREDL estimates that 77-80% of the
cost-plus-fixed-fee is obligated
through this fiscal year3,
suggesting the possibility of unexpected future
liabilities for DCS.
The huge cost-overrun is substantially greater because the one-year old performance cost estimate fails to incorporate:
1 DCS is presently under a cost-plus-fixed-fee contract called the Base Contract and awarded in March 1999 after two other bids were rejected. The Base Contract obligates DCS to conduct numerous activities at the front end of the plutonium/MOX fuel program (with DOE retaining Options to extend the contract for construction, operation, and deactivation):
Performance cost is the estimated cost for
the performance of the work under the Base
Contract, and is defined in Part I, Section
B.2.a of the DCS-DOE contract, Contract No.
DE-AC02-99CH10888. The Base Contract
performance cost in March 1999 at
time of award was $116.7 million. Three
subsequent contract modifications through July
2000 led to total increases of $8.6 million to
reach the $125.3 million performance cost
estimate in the most current contract available.
More Info: Plutonium Fuel Factory facts