Fusion occurs  when the nuclei of two light atoms collide with sufficient energy to  overcome their natural repulsive forces and fuse together. The Estimated Cost and Schedule of the U.S. ITER Project Has Grown Substantially Since 2006

The estimated cost and schedule of the U.S. ITER Project has grown  substantially since the ITER Agreement was signed in 2006 (see fig. 5),  and DOE has identified several reasons for these changes. Despite Reflecting Most Characteristics of Reliable Cost and Schedule Estimates, DOE’s Estimates Cannot Be Used to Set a Baseline in Part Because They Are Linked to an Unreliable International Schedule

DOE’s current cost estimate for the U.S. ITER Project reflects most of the  characteristics of a reliable cost estimate, and its schedule estimates  reflect all characteristics of a reliable schedule. DOE’s Cost and Schedule Estimates Cannot Be Used to Set a Baseline Due to Factors That DOE Can Only Partially Influence

DOE considers its current cost and schedule estimates for the U.S. ITER  Project to be preliminary, and these estimates cannot be used to set a  performance baseline that would represent a commitment from DOE to  Congress to deliver the project at a specific cost and date. DOE Has Taken Several Actions to Reduce U.S. ITER Project Costs

According to DOE documents and officials, DOE has taken several  actions to reduce the cost of the U.S. ITER Project by about $388 million  as of February 2014, including the following:
Value engineering: The U.S. ITER Project Office has identified ways  to design U.S. hardware components that lower costs but maintain the  component’s essential functions. Without a strategic plan for the overall U.S. fusion  program that addresses DOE’s plans for managing the impacts of U.S.  ITER Project costs, the agency does not have information to  involve and help create a basic understanding among stakeholders— including Congress and the U.S. fusion community—about its plans  for balancing the competing demands that confront the program with  the limited resources available; better ensure that the U.S. ITER Project and other U.S. fusion  program activities are aligned to effectively and efficiently achieve the  program’s goals; and  improve Congress’s ability to weigh the potential trade-offs of different  funding decisions for the U.S. ITER Project and the overall U.S. fusion  program within a constrained budget environment. However, DOE has not yet set  a performance baseline for the U.S. ITER Project in part because the  international project schedule is not reliable, a key factor that DOE can  only partially influence. To its credit, DOE has taken several actions to  push for a reliable international project schedule and improvements to  ITER Organization project management. DOE is beginning the initial work on such a plan, but a similar  effort that was started in 2012 did not result in a completed strategic plan  for the U.S. fusion program, and the agency has not provided a specific  date when it will complete its current effort. Continue to formally advocate for  the timely implementation of those actions at each future ITER  Council meeting until the ITER Council approves an updated  international project schedule;
Once the ITER Organization completes its reassessment of the  international project schedule, use that schedule, if reliable, to  propose a final, stable funding plan for the U.S. ITER Project, approve  a performance baseline with finalized cost and schedule estimates,  and communicate this information to Congress; and
Set a specific date for completing, in a timely manner, a strategic plan  for the U.S. fusion program that addresses DOE’s priorities for the  overall U.S. fusion program in light of U.S. ITER Project costs, and  involve the Fusion Energy Sciences Advisory Committee in the  development of the plan. Appendix I: Objectives, Scope, and Methodology

Our review assessed: (1) how and why the estimated cost and schedule  for the U.S. International Thermonuclear Experimental Reactor (ITER)  Project have changed since 2006; (2) the reliability of the Department of  Energy’s (DOE) current cost and schedule estimates for the U.S. ITER  Project and the factors, if any, that have affected their reliability; and (3)  the actions DOE has taken, if any, to reduce U.S. ITER Project costs and  plan for their potential impact on the overall U.S. fusion program.
Why GAO Did This Study

ITER is an international research facility being built in France to demonstrate the feasibility of fusion energy. Fusion occurs when the nuclei of two light atoms collide and fuse together at high temperatures, which results in the release of large amounts of energy. The United States has committed to providing about 9 percent of ITER's construction costs through contributions of hardware, personnel, and cash, and DOE is responsible for managing those contributions, as well as the overall U.S. fusion program. In fiscal year 2014, the U.S. ITER Project received $199.5 million, or about 40 percent of the overall U.S. fusion program budget.
GAO was asked to review DOE's cost and schedule estimates for the U.S. ITER Project. This report examines (1) how and why the estimated costs and schedule of the U.S. ITER Project have changed since 2006, (2) the reliability of DOE's current cost and schedule estimates, and (3) actions DOE has taken to reduce U.S. ITER Project costs and plan for their impact on the overall U.S. fusion program. GAO reviewed documents; assessed DOE's current estimates against best practices; and obtained the perspectives of 10 experts in fusion energy and project management.

What GAO Found

Since the International Thermonuclear Experimental Reactor (ITER) Agreement was signed in 2006, the Department of Energy's (DOE) estimated cost for the U.S. portion of ITER has grown by almost $3 billion, and its estimated completion date has slipped by 20 years (see fig.). DOE has identified several reasons for the changes, such as increases in hardware cost estimates as designs and requirements have been more fully developed over time.
DOE's current cost and schedule estimates for the U.S. ITER Project reflect most characteristics of reliable estimates, but the estimates cannot be used to set a performance baseline because they are linked to factors that DOE can only partially influence. A performance baseline would commit DOE to delivering the U.S. ITER Project at a specific cost and date and provide a way to measure the project's progress. According to DOE documents and officials, the agency has been unable to finalize its cost and schedule estimates in part because the international project schedule the estimates are linked to is not reliable. DOE has taken some steps to help push for a more reliable international project schedule, such as providing position papers and suggested actions to the ITER Organization. However, DOE has not taken additional actions such as preparing formal proposals that could help resolve these issues. Unless such formal actions are taken to resolve the reliability concerns of the international project schedule, DOE will remain hampered in its efforts to create and set a performance baseline for the U.S. ITER Project.
DOE has taken several actions that have reduced U.S. ITER Project costs by about $388 million as of February 2014, but DOE has not adequately planned for the potential impact of those costs on the overall U.S. fusion program. The House and Senate Appropriations Committees have directed DOE to complete a strategic plan for the U.S. fusion program. GAO has previously reported that strategic planning is a leading practice that can help clarify priorities, and DOE has begun work on such a plan but has not committed to a specific completion date. Without a strategic plan for the U.S. fusion program, DOE does not have information to create an understanding among stakeholders about its plans for balancing the competing demands the program faces with the limited available resources or to help improve Congress' ability to weigh the trade-offs of different funding decisions for the U.S. ITER Project and overall U.S. fusion program.

What GAO Recommends

GAO recommends, among other things, that DOE formally propose the actions needed to set a reliable international project schedule and set a date to complete the U.S. fusion program's strategic plan. DOE agreed with GAO's recommendations.