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Background. This report, which is one in a series requested by the Deputy Secretary of Defense, evaluates DoD management of the Cooperative Threat Reduction (CTR) solid rocket motor disposition facility project. Other reports in the series will cover additional CTR projects and DoD organizational arrangements for the CTR Program. Specific objectives of the CTR program are to destroy chemical, nuclear, and other weapons; transport, store, disable, and safeguard weapons until their destruction; and establish verifiable safeguards against proliferation of weapons of mass destruction.
DoD contracted with Lockheed Martin Advanced Environmental Systems for $52.4 million to design, develop, fabricate, and test a closed burn, solid rocket motor disposition facility for the Russian Federation in April 1997. That facility was to allow Russia to eliminate 319 intercontinental ballistic missile canisters, 916 motor cases, and 17,494 metric tons* of solid rocket propellant by December 2002. Initially, the facility was to be located in Perm, Russia, but was changed to Votkinsk (in the Udmurt Republic), Russia, in February 1998, after environmental concerns in Perm. The solid rocket motor disposition facility project required the burning of propellant from disassembled motors and disposal of the by-products created by burning. The project also included the elimination of motor cases, missile transport canisters, and launch canisters in a manner consistent with requirements of the Strategic Arms Reduction Treaty. As of April 2003, DoD had disbursed $99.7 million to assist Russia in the disposal of solid rocket propellant and motor cases.
Results.Although the DoD spent $99.7 million to design and begin construction of a facility that would eliminate solid rocket motors, Russian officials informed DoD in January 2003 that Russia would not be able to provide the land allocation to support the facility. Because of local opposition in the Udmurt Republic, that facility will not be constructed. As a result, the United States may spend $44.9 million to build temporary storage facilities for missiles and upgrade Russian capabilities for burning solid rocket motors. According to Defense Threat Reduction Agency officials, between January 2003 and August 2003, the agency disbursed about $72,000 for maintenance and security of buildings and other infrastructure that DoD had provided at the project site to ensure that the DoD investment would be available to support other CTR projects in Russia. Negotiating an agreement with Russia on the disposal of solid rocket motors should ensure that DoD and Russia understand their respective responsibilities and commitments. Determining the future of the facilities and equipment that DoD purchased for the solid rocket motor disposition project will eliminate the need for securing those items. In addition, the Defense Threat Reduction Agency could improve its management of CTR projects by including a risk mitigation strategy in written acquisition plans, implementing a milestone decision review and program baseline process, and ensuring that project managers maintain documentation of actions they have taken. (See the Finding section of the report for the detailed recommendations.)
On the positive side, the Defense Threat Reduction Agency has taken several steps to reduce DoD risks in the execution of ongoing and future projects. One initiative undertaken in conjunction with the Office of the Under Secretary of Defense for Policy is the development of Joint Requirements Implementation Plans. The Defense Threat Reduction Agency has also issued instructions to ensure that acquisition plans are retained and contracting officer's representative files are maintained. In addition, the Defense Threat Reduction Agency has implemented a phased approach to project execution to further reduce DoD risks. For solid rocket motors, the Defense Threat Reduction Agency has shifted the risk to Russia by agreeing to reimburse Russia after the propellant is burned.
Management Comments and Audit Response. Comments from the Deputy Under Secretary of Defense (Technology Security Policy and Counterproliferation) and the Director, Defense Threat Reduction Agency were partially responsive. Although not required to comment, the Assistant to the Secretary of Defense (Nuclear and Chemical and Biological Defense Programs) agreed with our recommendations to the Defense Threat Reduction Agency, noting that policies have already been implemented and will continue to be followed and expanded upon. Based on comments from the Deputy Under Secretary of Defense, we deleted the draft recommendation to provide written plans to the Defense Threat Reduction Agency that include requirements, priorities, budgets, and schedules for the CTR Program. We will address that recommendation, as needed, in our review of CTR organizational arrangements.
Although management has taken positive actions, the comments are only partially responsive. The Deputy Under Secretary of Defense (Technology Security Policy and Counterproliferation) and the Russian Aviation and Space Agency have completed negotiations to amend the Strategic Offensive Arms Elimination-Russia implementing agreement to establish the responsibilities and commitments of each party for the disposal of solid rocket motors. We request that the Deputy Under Secretary of Defense forward a copy of that amendment after it has been signed. The Director, Defense Threat Reduction Agency needs to provide the written guidelines that describe the process to be used, including guidelines for designating an appropriate milestone decision authority commensurate with the value, complexity, and level of congressional interest for each CTR project. We request that the Deputy Under Secretary and Director, Defense Threat Reduction Agency provide these copies by November 10, 2003. See the Finding section of the report for a discussion of management comments and the Management Comments section of the report for the complete comments.
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*A metric ton equals 2,204.06 pounds.
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