Summary: More than 50 articles alleging mismanagement and safety violations at the Energy Department's (DOE) Fernald site in Ohio appeared in the Cincinnati Enquirer last year. The Fernald Site, located about 18 miles from Cincinnati, is contaminated from years of uranium metal production. DOE has a five-year, $1.9 billion contract with Fluor Daniel Fernald to clean up the facility. The contract will be up for a one- to three-year renewal in November 1997. DOE estimates that it will take an additional 13 years and about $2.4 billion to complete the cleanup. The seriousness of the allegations prompted both DOE and Fluor Daniel Fernald to create two ad-hoc groups to investigate the situation. This report discusses (1) the extent to which DOE is effectively managing and overseeing two key cleanup projects at Fernald--the vitrification pilot plant project and the uranyl hexahydrate project--that were reported on in the Cincinnati Enquirer, (2) DOE's oversight of safety and health activities at the site, and (3) the contractors' compliance with performance and financial system procedures. GAO also discusses the major allegations and what is known about them, including the results of the two main investigations, and provides information on the facts surrounding Fluor Daniel Fernald's recent announcement that it may take 12 to 15 years to complete the cleanup, rather than the previously agreed-upon 10-year time frame.
