In comparison to prior cost and schedule estimates prepared by DOE, the Corps’ cost estimates, in total, are higher. The Corps estimated that it would cost up to $2.25 billion and would take until after 2004 to complete cleanup at all sites. DOE had estimated that it would cost up to $1.5 billion and would take until as late as 2006 to complete cleanup. An examination of the individual cost estimates, however, shows that much of the difference between DOE’s and the Corps’ estimates can be attributed to two FUSRAP sites where new information became available after the program was transferred and/or the scope of cleanup alternatives was changed. The Corps is reviewing the proposal. In fiscal year 1998, the Corps had 71 full-time equivalents involved in program management and support. One site (Madison, Ill.) did not have any fiscal year 1998 milestones. One of the challenges the Corps identified during the program’s transition from DOE was completing environmental documents necessary to begin removal or remediation of contamination pursuant to the act. Transition Activities and Issues

During the transition from DOE to the Corps, the Corps established transition teams and met with DOE officials to transfer contracts and obtain information related to the FUSRAP sites. Specifically, the matter of which agency is responsible for property management has not been decided. DOE and Corps officials informed us that they are attempting to resolve this issue in the Memorandum of Understanding, which may be finalized in early 1999. The Corps reviewed all 22 sites, developed cost and schedule estimates for each, and established site-specific milestones. For most sites, these milestones were achieved or exceeded. As a result, there is potential for the Corps’ $2.25 billion cleanup cost estimate to increase in the future. In addition, several overall transition issues related to the Corps’ responsibilities and authorities remain to be formally resolved, particularly, its responsibility for determining the eligibility of new FUSRAP sites, accountability for the sites removed from the program, and accountability for the sites currently in the program. DOE’s letter provides a perspective on the last several years of the Formerly Utilized Site Remedial Action Program—when it was managed by DOE—and the condition of the program when it was transferred to the Corps. To determine the basis for the Corps’ cost and schedule estimates contained in its report to Congress and to obtain information on the Corps’ program milestones, staffing levels, and environmental document preparation, we visited and held discussions with officials from the six Corps districts that are responsible for FUSRAP sites. No FY 1998 milestones. Complete Record of Decision. Issue Engineering Evaluation/Cost Assessment.
Why GAO Did This Study

Pursuant to a congressional request, GAO reviewed the Army Corps of Engineers' Formerly Utilized Sites Remedial Action Program (FUSRAP), focusing on the: (1) Corps' cost and schedule estimates for cleaning up the FUSRAP sites; (2) Corps' progress in meeting milestones for site cleanups, FUSRAP staffing levels, and environmental document preparation; and (3) transition of the program from the Department of Energy (DOE) to the Corps.

What GAO Found

GAO noted that: (1) when the Corps took over the program, it reviewed DOE's cost and schedule estimates for the 22 sites, visited the sites, and developed new cost and schedule estimates for each; (2) the Corps' cost estimates, in total, are higher than estimates previously developed by DOE; (3) the Corps estimated that it would cost up to $2.25 billion and would take until after 2004 to complete cleanup at all sites; (4) however, there is potential for the $2.25 billion estimate to increase in the future because no proven technology is available to clean up one site and characterization is incomplete for others; (5) DOE had estimated that it would cost up to $1.5 billion and would take until as late as 2006 to complete the cleanup; (6) an examination of the individual cost estimates, however, shows that much of the difference between DOE's and the Corps' estimates can be attributed to two sites where new information became available after the program was transferred or the scope of the cleanup alternatives was changed; (7) since the program was transferred to the Corps in October 1997, the Corps has achieved or exceeded its milestones for planned cleanup activities at 16 of the 22 sites; (8) the Corps did not achieve one or more of its milestones at five sites, and one site did not have any milestones for fiscal year (FY) 1998; (9) to accomplish its goals for the program, in FY 1998, the Corps had 71 full-time equivalents involved in program management and support; (10) in regard to completing the environmental documentation necessary to begin removal and remedial work, the Corps has made considerable progress, including issuing two Records of Decision and five Engineering Evaluation/Cost Assessments that provide detailed plans for site cleanups; (11) during the program's transition from DOE to the Corps, the Corps established transition teams and worked with departmental officials to transfer the 22 sites; (12) when the program was transferred, several issues remained unresolved; (13) only one issue remains to be formally resolved, specifically, which agency should be accountable for property management for the sites while they are in the program; and (14) attempts to resolve this issue through negotiation of a memorandum of understanding between the Corps and DOE are ongoing.