Of the five construction projects that the National Nuclear Security Administration has ever bothered to isolate into their own contract line items, the Savannah River Plutonium Processing Facility is the newest and the biggest. According to a new GAO report on how NNSA uses these line items, the facility got its own cost-plus-award-fee line in 2023, its own tailored performance evaluation, and, according to officials, a fee plan that took a group of thirty to forty staff and contractors to put together. The theory, as always, was that isolating the deliverable would isolate the accountability.
What GAO’s own separate assessment of NNSA’s major projects found, published the same month, is that the agency has spent the last two years quietly lowering the bar the project has to clear rather than raising the pressure on the contractor to clear it.
The Standard NNSA Lowered for Itself
In October 2024, NNSA adopted what it calls a second revised tailoring strategy for the plutonium facility’s Main Process Building, according to GAO’s February 2026 assessment of NNSA’s major projects. The strategy folded the scope of three other projects into the Main Process Building, and it did something considerably more interesting to the government’s own rulebook. It let NNSA establish a formal cost and schedule baseline once the design was only sixty percent finished, instead of the ninety percent DOE’s own project management order otherwise requires. It also let construction begin before that baseline existed at all.
NNSA approved ten early procurement and site preparation packages under this looser standard, intended to get lower risk work started while the design was still being finalized. According to GAO, the agency could not fully execute even that plan, because the contractor kept falling behind on delivering the design packages that were supposed to accompany the work. Officials told GAO they are still struggling to hire qualified design engineers and that the contractor continues to miss performance targets. The project’s final design review, originally set for March 2026, has slipped to September 2026. When the contractor submitted its package for an independent cost estimate in May 2025, GAO found it was insufficient to actually conduct the estimate; NNSA is waiting on a resubmission in early 2026, at which point officials hope the design will finally be close to the ninety percent maturity the agency waived in the first place.
The cost, meanwhile, has done what cost usually does at Savannah River. NNSA’s own fiscal year 2026 budget justification puts the Main Process Building at over twenty two billion dollars, against a preliminary range of $6.9 billion to $11.1 billion that NNSA itself published at the project’s first major milestone. Officials told GAO the September 2035 completion date, already the later end of that earlier range, may slip further. A revised cost and schedule estimate is not due for internal NNSA approval until September 2026.
A Building With a Prior Conviction
None of this is Savannah River’s first attempt at doing something complicated with plutonium in that same footprint. The plutonium facility is being built inside and around the shell of the site’s Mixed Oxide Fuel Fabrication Facility, a program NNSA spent roughly fifteen years and more than eight billion dollars on before mothballing it in 2014. That project, too, started with a modest number. DOE estimated MOX construction at $1.6 billion in 2004. By 2013, GAO was confirming that NNSA had quietly added another two billion dollars to the estimate even as the facility was supposedly nearing completion, after years of the agency declining to disclose a rebaselined figure publicly. The facility never processed a gram of commercial fuel. NNSA converted the shell into the plutonium pit factory it operates today.
There is a version of this story where the agency learned something from the MOX years and applied it to the pit factory. The tailoring strategy GAO documented in the new report suggests the lesson NNSA actually absorbed was narrower: that a hard design-maturity threshold is an obstacle to be waived when the schedule is inconvenient, not a floor to be held.
Now Firing the Contractor, Unrelatedly
Whatever the line item and its fee plan were supposed to buy NNSA, it apparently was not enough confidence in the incumbent. Savannah River Nuclear Solutions, the Fluor led joint venture that has run the site since 2008 and is building the plutonium facility, received a project management rating of less than adequate in its fiscal year 2024 performance evaluation, according to a review DOE released in February 2025, which cited the absence of a credible overall project schedule. In February 2026, NNSA released a request for proposals for a standalone follow-on management and operating contract for the entire Savannah River Site, worth an estimated sixty one and a half billion dollars over a potential twenty years and four months, a competition NNSA’s own announcement frames as separate from the plutonium project specifically but that plainly reflects an agency no longer content with how its current contractor performs. NNSA extended the incumbent’s contract through September 2027, worth an additional $2.3 billion, explicitly to preserve workforce continuity while the recompete plays out, which is its own small admission that the agency does not trust the transition to go smoothly either.
The new M&O contract, whoever wins it, will not just run the plutonium factory. It also covers the storing, processing, and long term management of the nuclear materials and waste that Savannah River exists to handle, all under the same undocumented, case by case logic GAO’s line item report says NNSA still uses to decide which pieces of that work get isolated into their own accountability structure and which pieces stay folded into the general M&O scope where waived standards and quiet rebaselines are harder to see. A cost-plus-award-fee line item and a thirty person fee plan gave GAO something to point to when NNSA needed to demonstrate it was taking the plutonium facility seriously. It did not stop the agency from lowering its own design standard to keep pouring concrete, and it did not stop the government from concluding, two years after handing the project its own line, that the company running it needs to be replaced.
Sources: GAO, NNSA Contract Line Items: Agency Should Document Criteria for Use and Capture Lessons Learned (GAO-26-108409, September 2026); GAO, NNSA Construction Projects: Cost and Schedule Performance (GAO-26-107777, February 2026); GAO, Mixed Oxide Fuel Fabrication Facility: DOE Needs to Provide More Consistent and Timely Cost Information (GAO-13-283, 2013). Related: $308 Million to Keep the Lights On in a Building From 1945.