§6284 Notification of Cost Overruns for Certain Department of Energy Projects

Summary

The NNSA Administrator and the Energy Secretary must set a cost and schedule baseline before certain project milestones. For NNSA nuclear life-extension or new-weapon projects, the baseline must be set before entering Phase 6.4 or Phase 4 and must match the cost and schedule in the project's first Selected Acquisition Report under section 6125(a). The baseline must include an estimated cost for each warhead. NNSA must also set baselines for major alteration projects (those costing more than $800,000,000) before Phase 6.4, with a per-warhead cost estimate. The Energy Secretary must set baselines under DOE project rules for any construction or defense environmental cleanup project that costs more than $65,000,000 and uses DOE national security authorization funds. In every case, the baseline must be sent to the congressional defense committees within 30 days. If a project’s total cost looks like it will go above 125% of its baseline, the NNSA Administrator or Energy Secretary must tell the congressional defense committees within 30 days. For life-extension, new-weapon, or major alteration projects, they must also report within 30 days if any single warhead’s cost will exceed 150% of its baseline. Within 90 days after that notice, they must tell Congress whether the project will stop or continue. If it continues, they must certify a revised baseline and per-warhead estimates, confirm a review by the Director of Cost Estimating and Program Evaluation, say the project is needed and has no viable alternative, and say a management structure is in place to control cost and schedule. They must also give a root-cause report for the cost growth that covers things like bad estimates, immature technology, design or integration problems, funding instability, changes in quantities, poor contractor or government performance, or other causes. Any revised baseline must be sent to Congress with the certification and review and is treated the same as the original baseline for future notifications.