Federal Research

Additional Funds for Terminating the Super Collider Are Not Justified Gao ID: RCED-94-153 April 8, 1994

A request from the Energy Department (DOE) for an additional $180 million to cover termination costs for the Superconducting Super Collider in Texas, on top of $735 million already available, is not adequately justified and is not needed for currently estimated termination activities. The $735 million available for terminating the super collider exceeds DOE's latest cost estimate, made in March 1994, by $167 million; this estimate pegs termination costs at $568 million. This amount omits the costs of settling Texas' demand for a $539 million refund from DOE for its investment in the project. DOE has not yet determined what is owed to Texas and is now negotiating with the state on a settlement. DOE's $180 million request for fiscal year 1995 to cover termination costs and to potentially fund new uses of the collider's assets is justified at this time. Additional funds are not needed for currently estimated termination activities, and it is premature to fund yet-to-be-determined future users of the collider's assets.

GAO found that: (1) DOE has a total of $735 million to cover project termination costs; (2) in October 1993, DOE advised that, while many termination costs were unknown and uncertain, they could total as much as $1.1 billion; (3) in March 1994, DOE estimated that, excluding the costs of settling Texas' claim for project investment, termination costs would be about $568 million, including $173 million for subcontract closeouts, $78 million for severance packages, and $25 million for site restoration; (4) DOE requested an additional $180 million in its FY 1995 budget for continuing termination activities, but it already has sufficient funds to cover its estimate of termination costs; and (5) DOE has no documentation to justify its request for $180 million, and although it is seeking to fund future uses of the project's assets, it has not yet determined which uses it will pursue.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

Director: Team: Phone:


The Justia Government Accountability Office site republishes public reports retrieved from the U.S. GAO These reports should not be considered official, and do not necessarily reflect the views of Justia.