Project Management Issues at NNSS Security Upgrade Quadrupled Price, IG Says

Costs have more than quadrupled for a security system upgrade at the Nevada National Security Site with no firm completion date due to a lack of funding and project management issues by contractor National Security Technologies, LLC, according to a Department of Energy Inspector General report released yesterday. The Argus project aims to update the current aging enterprise security system at NNSS, and was launched in November 2010 with cost estimate of $8.4 million and an October 2011 targeted completion. However, total project costs have increased to $35.3 million and the project has been on hold since May 2014. “We determined that the Argus project experienced schedule delays and cost increases as a result of inadequate project management and funding issues,” the IG report states. “As a result, [protective forces contractor] Centerra Nevada has continued to rely on an outdated security system with backup countermeasures to ensure security is maintained.”

 

NSTec did not perform its role as project integrator, according to the IG, and Argus has “lacked consistent NSTec leadership throughout its existence.” For example, the project manager has changed five times since the effort began in 2010. “In our opinion, the lack of consistent management also likely hindered the project’s progress,” the IG stated. “Further, [the National Nuclear Security Administration’s] Office of Acquisition and Project Management told us that NSTec’s inexperience with projects of this complexity and their associated project management requirements led NSTec to significantly underestimate the challenges involved in the Argus project.” Additionally, “poor communication between the Nevada Field Office and NSTec personnel managing the Argus project was also a contributing factor to the situation,” according to the report.