Audit of the radioactive liquid waste treatment facility operations at the Los Alamos National Laboratory

Los Alamos National Laboratory (Los Alamos) generates radioactive and liquid wastes that must be treated before being discharged to the environment. Presently, the liquid wastes are treated in the Radioactive Liquid Waste Treatment Facility (Treatment Facility), which is over 30 years old and in need of repair or replacement. However, there are various ways to satisfy the treatment need. The objective of the audit was to determine whether Los Alamos cost effectively managed its Treatment Facility operations. The audit determined that Los Alamos` treatment costs were significantly higher when compared to similar costs incurred by the private sector. This situation occurred because Los Alamos did not perform a complete analysis of privatization or prepare a {open_quotes}make-or-buy{close_quotes} plan for its treatment operations, although a {open_quotes}make-or-buy{close_quotes} plan requirement was incorporated into the contract in 1996. As a result, Los Alamos may be spending $2.15 million more than necessary each year and could needlessly spend $10.75 million over the next five years to treat its radioactive liquid waste. In addition, Los Alamos has proposed to spend $13 million for a new treatment facility that may not be needed if privatization proves to be a cost effective alternative. We recommended that the Manager, Albuquerque Operations Office (Albuquerque), (1) require Los Alamos to prepare a {open_quotes}make-or-buy{close_quotes} plan for its radioactive liquid waste treatment operations, (2) review the plan for approval, and (3) direct Los Alamos to select the most cost effective method of operations while also considering other factors such as mission support, reliability, and long-term program needs. Albuquerque concurred with the recommendations