SSC termination will be lengthy and expensive - C&EN Global

In the meantime, Energy Secretary Hazel R. O'Leary has come up with a ... closing out the many contracts the department has for building and supplying...
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GOVERNMENT and computer specialists—are able to find work fairly quickly, Abbee says, but clerical personnel are having more Closing down the huge Superconduct- from business cards to the manufacture trouble. ing Super Collider (SSC) is going to of the superconducting magnets. There Gilbert indicates a similar situation at take a lot of time and money. Congress are also real estate leases and some inter- his company. "Placement has been a gave the Department of Energy $640 national agreements that have to be substantial problem," he says. His commillion to begin the shutdown in fiscal completed. pany is rapidly reducing staff, but has 1994, and DOE is asking for another PB/MK was the construction con- only been able to find new jobs within $180 million next year. In the mean- tractor at the site, responsible for the the company for about half of the peotime, Energy Secretary Hazel R. O'Le- tunnels, buildings, and utilities for the ple. The rest are finding positions at othary has come up with a termination SSC. Paul H. Gilbert, project director er companies or away from the site, with plan for the project that will guide the for the PB/MK team, says: "I think about 10 to 15% remaining unemployed, department's activities. everyone was terribly disappointed ,/ Gilbert says. Much of the expense associated with that Congress shut off funding for the The question of how best to use the terminating the SSC project involves project. "We are also disappointed be- assets from the SSC site is to be the closing out the many contracts the cause our part of the job had been go- subject of a meeting March 22 at the department has for building and sup- ing extremely well." The company had SSC central facility. Interested parties plying the site. Other major parts of fixed-price contracts to spend $460 mil- are invited to suggest new uses for the the termination will be the environ- lion, and at the time of termination was facilities and equipment now in place. mental restoration and asset closeout, running nearly $100 million under bud- The SSC site already includes extensive and the benefits provided for the get, according to Gilbert. Despite already cryogenic facilities; superconducting SSCs employees. Two things still un- having a termination plan from DOE, magnet tooling equipment; the Magnet resolved are the settlement DOE must Gilbert expects it to take up to two years Test Laboratory; a 550,000-sq-ft buildmake with Texas for the state's invest- before all the contract settlements are ing including machine shops, labs, and ment in the project and deciding what completed. liquid helium refrigerator; 15 miles of will be done with the facilities already Taking care of personnel being laid tunnels; and an integrated network of there. off at the site is a major concern as well. distributed computer workstations. Also Congress voted last year to close About 2,200 persons, including scien- at the site are a negative hydrogen ion down the project as of October 1993. tists and engineers, worked in the labo- source and the first stage of a 2.5-MeV The consensus was that costs had esca- ratories at the site. According to DOE's linear accelerator. lated beyond reason and that the na- SSC spokesman James Abbee, that "Secretary O'Leary has to report tion had other priorities for the funds. number is already down to about 1,100, back to Congress by July 1 with recomOriginally thought to cost about $4.4 and likely will be reduced to 950 by the mendations as to what to do with the billion to build, the estimated cost had end of this month. SSC assets," Abbee says. That does not ballooned to $13 billion by last year. DOE is committed to providing out- give DOE much time. Texas Gov. Ann More than $2 billion had already been placement assistance programs, job W. Richards has formed an advisory spent. Congress had also been told sig- fairs, and other aid for workers who panel to advise her on future use of the nificant funding would come from oth- have been dismissed. DOE also will site, and the panel is discussing ideas er nations, especially Japan, to help give 60 days' severance pay for those with DOE, too, according to Abbee. with the project. However, only very laid off at the laboratory. Most of the A major expense to the government minor funding was ever forthcoming technical people—scientists, engineers, not included in the estimate of the terfrom foreign sources, and mination plan is reimbursJapan did not contribute ing Texas for the money it at all. has spent at the site. Texas Contractors take biggest chunk of funds for and DOE have signed an Over the next four years, Superconducting Super Collider termination agreement to negotiate in DOE plans to spend more good faith on this issue. than $210 million to close 1997 Total 1996 $ Millions 1994 1995 Texas claims it has spent out the contracts and sub0 $211.7 $141.4 $ 66.6 $ 3.7 Contract closeout $435 million directly on the contracts it negotiated for 90.7 17.2 1.9 $ 0.3 Personnel demobilization 71.3 SSC and has said that it building the SSC. The six 0 35.9 2.0 0 Technology closeout 33.9 wants to be reimbursed for major engineering contrac33.1 0 0 10.5 Facility maintenance 22.6 that amount, in cash. "This tors at the site are EG&G, & security is being negotiated at this PB/MK, GD-CDM, Bab0.7 0.7 32.5 13.5 Administration & support 17.6 3 time," Abbee says. Adding cock & Wilcox-CQM, Lock8.2 57.8 57.6 134.6 Asset phaseout 11.0 this amount to the amount heed, and Westinghouse. 15.3 0 0 7.7 7.6 Environmental safety already spent and projectThese firms held combined 0 5.1 0 1.5 3.6 Economic development & use ed termination costs would contracts worth about $850 raise the government's tab million at the time SSC was TOTAL $309.1 $127.1 $64.1 $58.6 $558.9 for halting the SSC to more halted. Overall, the project Note: Cost estimates do not include $51 million spent in fiscal 1993, nor do they include than $1.1 billion. has approximately 44,000 future settlement with Texas, a Includes site restoration. Source: Department of Energy contracts out for everything David Hanson

SSC termination will belengthy and expensive

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MARCH 14,1994 C&EN