Johnston Atoll has missed its schedule milestone  for shutting down the facility (closure phase). Table 1 shows  the status of the incineration sites that will miss 2001 schedule milestones. Environmental permitting. Funding. As of October 2003, according to preliminary  estimates from FEMA, unfunded CSEPP requirements for all sites are  expected to amount to $39.4 million and $49.0 million for fiscal years 2004  and 2005, respectively. The Chem-Demil Program has faced continued delays with the program  largely because DOD and the Army have not yet developed a risk  management approach to proactively anticipate and address potential  problems that could adversely affect program schedules, costs, and safety. As a result, DOD’s total  program cost estimate grew from $15 billion to $24 billion between 1998  and 2001. Program officials told us that they estimate new  costs had increased by $1.4 billion as of October 2003, and this estimate is  likely to rise further as additional factors are considered. Since reaching the 2002 deadline to destroy  20 percent of the stockpile in July 2001, the Chem-Demil Program has been  able to destroy only an additional 3 percent of the stockpile. In order to  meet the April 2004 CWC deadline to destroy 45 percent of the stockpile,  the program would have to eliminate an additional 22 percent of the  stockpile within the next 6 months. According to current destruction schedules, the United States will not  meet the 2007 deadline to eliminate 100 percent of the stockpile. As a  result, the United States will likely have to ask for an extension of the 2007  deadline to complete the destruction of the entire stockpile. Unless the  program fixes the problems that are causing schedule delays, the United  States also risks not meeting this deadline, if extended to 2012. The lack of sustained leadership  has undercut decision-making authority and obscured accountability. The  program’s complex structure, with many lines of authority, has left roles  and responsibilities unclear. Finally, the program lacks an overarching,  comprehensive strategy to guide and integrate its activities and monitor  performance. Program Lacks Strategy and Implementation Plan

While DOD and the Army have issued numerous policies and guidance  documents for the Chem-Demil Program, they have not developed an  overarching, comprehensive strategy or an implementation plan to guide  the program and monitor its progress. Emergency Preparedness Program Is Improving, but Costs Are Rising

Since our 2001 report, the Army and FEMA have assisted state and  local communities to become better prepared to respond to chemical  emergencies. In our August 2001 report, we recommended that the Army and FEMA  (1) provide technical assistance, guidance, and leadership to the three  states (Alabama, Indiana, and Kentucky) with long-standing emergency  preparedness issues to resolve their concerns; (2) provide all states and  their communities with training and assistance in preparing budget and  life-cycle cost estimates and provide guidance and plans on reentry; and  (3) establish specific measures of compliance with the benchmarks to  more evenly assess performance and to correctly identify requirements.
Why GAO Did This Study

Since its inception in 1985,the Chemical Demilitarization (Chem-Demil) Program has been charged with destroying the nation's large chemical weapons stockpile. After years of planning and building new facilities, the program started destroying the stockpile in 1990. As of October 2003, the program had destroyed 26 percent of the 31,500-ton agent stockpile, and its total estimated cost to destroy the entire stockpile is more than $25 billion. This testimony summarizes GAO's September 2003 report and addresses the following issues: (1) the status of schedule milestones and cost estimates, (2) the impact of the current schedule on the Chemical Weapons Convention (CWC) deadlines, (3) the challenges associated with managing the program, and (4) the status of the Chemical Stockpile Emergency Preparedness Program (CSEPP).

What GAO Found

The Chem-Demil Program faces schedule delays and higher costs, but it has improved emergency preparedness in communities near the sites. In 2001, the Chem-Demil Program extended its schedule milestones and increased its cost estimates from $15 billion to about $24 billion. Since then nearly all sites have experienced delays,stemming from problems such as: plant safety issues,environmental requirements, approving emergency preparedness plans, and funding shortfalls. The program needs a risk management plan to mitigate problems affecting program schedules, costs, and safety. Program officials say the delays have raised the cost estimates by an additional $1.4 billion, to more than $25 billion as of September 2003. Based on current schedule slippages, GAO believes that costs will grow higher and further delays will occur. Because of schedule delays, the United States will not meet CWC's April 2004 deadline to destroy 45 percent of the stockpile and it risks not meeting the original 2007 deadline to complete destruction of the entire stockpile. Unless the program fixes the problems causing delays,the United States also risks not meeting CWC's deadline of 2012, if extended. The program has suffered from several long-standing management and organizational issues. The lack of sustained leadership has undercut decision-making authority and obscured accountability. The program's complex structure, with multiple lines of authority, has left roles and responsibilities unclear. It does not have an overarching, comprehensive strategy to guide and integrate its activities and monitor its performance. The Army and the Federal Emergency Management Agency have helped state and local communities become better prepared to respond to chemical emergencies. Despite these gains, CSEPP costs are rising because some states have expanded their preparedness requests beyond the approved budgets. These requests amount to $88 million for fiscal years 2004 and 2005.