Department of Energy

The Spallation Neutron Source Project, a billion-dollar complex to be built in Oak Ridge, Tennessee, is designed to be the world's most powerful accelerator-based facility. The project represents the largest interlaboratory collaboration ever attempted, bringing together the work of five national laboratories. Experiments done at the laboratory could lead to new materials for use in everything from planes and automobiles to drugs and computer hard drives. The project is not currently in trouble, but warning signs in three key areas raise concerns about whether it will be completed on time and within budget, GAO testified. This testimony is based on GAO's ongoing review of the project's management, the project's cost and schedule, and the effectiveness of the collaborating laboratories' coordination.

GAO noted that: (1) the project is not currently in trouble, but warning signs in three key areas raise concerns about whether it will be completed on time and within budget; (2) DOE has not assembled a complete team with the technical skills and experience needed to properly manage the project; (3) a permanent project director was just hired last week, 5 months after Congress approved the start of construction and over a year after the project's design was approved; (4) other important positions remain unfilled, including those of a technical director and an operations manager; (5) cost and schedule estimates for the project have not been fully developed; (6) furthermore, the project's contingency allowances for unforeseen costs and delays are too low for a project of this size and scope, according to project managers and DOE; (7) DOE's approach to managing the project requires an unprecedented level of collaboration among five different laboratories, managed through DOE's complex organizational structure; and (8) coupled with DOE's history of not successfully completing large projects on time and within budget, these warning signs make the Spallation Neutron Source project a significant management challenge for DOE and suggest a need for continued close oversight.