Report on audit of the Department of Energy`s Transportation Accident Resistant Container Program

The U.S. Department of Energy (Department) has ultimate responsibility for the safety of all nuclear explosives and weapons operations conducted by the Department and its contractors. The Department also has joint responsibility for the safety of nuclear weapons in the custody of the Armed Services. Since the 1970s, the Department has designed, developed, and produced accident resistant containers to promote safety when transporting certain types of nuclear weapons by air. After successfully developing and modifying accident resistant containers for use on Army helicopters, the Department subsequently designed, modified, and produced similar containers for the United States Air Force. Because the Department spent millions of dollars on this project, we conducted the audit to determine if the Department had adequate controls in place to preclude the development and production of projects which did not have customer agreement or meet customer requirements. One goal of the Department`s Strategic Plan is to ensure that customer expectations are met by having them participate in the planning process. Although nuclear safety responsibility was shared with the Department of Defense, the Department designed and produced 87 accident resistant containers for about $29 million when the customer did not want them and expressed no desire to use these containers. This occurred because the Department unilaterally decided to produce containers without ensuring that the containers met customer expectations. There may be circumstances where the Department will do some preliminary design and testing before agreeing with the Department of Defense on requirements. However, the Departments of Energy and Defense should reach agreement on the requirement for products before final design and production, otherwise funds will be spent unnecessarily