March 30, 2016

Management of the Startup of the Sodium-Bearing Waste Treatment Facility

Under its contract for the Idaho Cleanup Project, CH2M-WG Idaho LLC was to design, construct, and operate the Sodium-Bearing Waste Treatment Facility (SBWTF) to treat 900,000 gallons of radioactive liquid waste that is currently stored in underground waste tanks at the Idaho National Laboratory.  In April 2012, the Department declared construction complete, beginning the project’s operation phase, and in June 2012, CH2M-WG Idaho LLC initiated comprehensive performance testing, which involved operating the plant at high temperature with a nonradioactive simulant to prove full performance of the facility.  On June 16, 2012, during testing, the facility experienced a “system pressure event” which led to the shutdown of the facility.  The Department’s investigation into the event revealed both operational and design deficiencies and the facility has been shut down since the event for modifications and repairs to the facility and process.

Our audit revealed significant problems with the Department’s management of the startup of the SBWTF.  In particular, we found that the Department moved the work associated with the comprehensive performance test, which demonstrates that the facility would perform its mission as designed, from the construction phase of the project to the operations phase of the project.  This project modification resulted in the Department not performing a rigorous test of the functionality of the facility before construction was declared complete.

In light of the issues we identified, we concluded that the Department’s cost cap did not successfully limit the construction costs borne by the taxpayers, and the total actual construction cost for this facility is likely understated by about $181 million thus far.  Department officials told us that other cleanup work at the Idaho site that might otherwise have been accelerated was not, because the funding for that work is being used to repair and reconstruct the SBWTF.  In addition, in January 2015, the Idaho Department of Environmental Quality issued a Notice of Violation to the Department for failing to meet its commitment in the Resource Conservation and Recovery Act Notice of Noncompliance Consent Order related to the closure of the sodium-bearing waste tanks.

Topic: Management & Administration