Watchdog: MOX an $8B boondoggle

Jerry Bellune
Posted 12/26/19

YOUR TAXES AT WORK

Savannah River Site contractors milked the MOX project for $8 billion in taxpayers’ dollars.

That’s the conclusion of Savannah River Watch …

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Watchdog: MOX an $8B boondoggle

Posted

YOUR TAXES AT WORK

Savannah River Site contractors milked the MOX project for $8 billion in taxpayers’ dollars.

That’s the conclusion of Savannah River Watch Director Tom Clements about the mixed oxygen project to dispose of dangerous weapons-grade nuclear material at the site 45 minutes from Lexington County.

“Where are the larger investigations into waste, fraud, abuse and mismanagement?” he asked.

“Congress is sweeping the waste of over $8 billion of taxpayer money under the rug, with both parties being guilty of aiding and abetting the MOX cover-up.”

Congressman Joe Wilson of Springdale told the Chronicle he was sad MOX was terminated after being almost 70% complete.

“This year, I was grateful to see full funding passed through Congress to repurpose the MOX facility ... which is critical to our national security.”

Clements said the MOX Services contract with the National Nuclear Security Administration for design, construction, operation and deactivation of the Mixed Oxide Fuel Fabrication Facility at the Savannah River Site was established in March 1999.

The MOX facility was intended to be a major component in the US program to dispose of surplus weapons-grade plutonium.

In fiscal year 2007, NNSA authorized starting construction which was estimated at about $4.8 billion with a 10-year completion and start of operations.

9 years later, the Department of Energy, in partnership with the U.S. Army Corps of Engineers, estimated the construction cost to be at more than 3 times that, about $17.2 billion, with operations starting as late as 2048. This led in part to NNSA killing the contract in October 2018.

Savannah River Watch found that MOX Services did not consistently manage the subcontracts in accord with Federal Acquisition Regulation requirements.

These included contract cost principles and procedures in subcontract modifications, labor premiums, supporting documents, overtime billing, rework costs, rework labor profits and material reconciliations.

“As a result, we identified $8.5 million in questioned costs,” Clements said.

Based on this, Savannah River Watch believes other unallowable subcontract costs may have been charged and reimbursed.

“In our opinion, MOX Services management’s culture regarding cost allowability contributed to these issues.”

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