Page images
PDF
EPUB

Financing of Obligations
The financing of the estimated total obligations of $675,375,000 proposed in the budget estimates for 1974, together with compa-
rable data for 1972 and 1973, is summarized in the following table:

SUMMARY OF FINANCING

[blocks in formation]

Expenditures for Plant and Capital Equipment Expenditures from the "Plant and Capital Equipment" appropriation for 1974 are estimated to be $507,600,000, The estimated amounts available for expenditure in 1972, 1973, and 1974, the remaining unexpended balances and the expenditures for each year are shown in the following table:

[blocks in formation]

95-001 - 73 - Pt. 4 - 2

HIGHLIGHTS OF PLANT AND CAPITAL EQUIPMENT 1. Nuclear Materials Obligations for nuclear materials plant and capital equipment in 1974 are estimated at $205.3 million of which $43.6 million is required for obligation against new projects proposed for authorization, $131.6 million is for projects authorized in prior years for which additional authorization and funding is now being proposed, $12.0 million is for funding of previously authorized projects, and $18.1 million is for capital equipment not related to construction. The new construction projects include: additional facilities, high level waste storage, Savannah River, South Carolina ($6.0 million); replacement ventilation, air filter, F chemical separations area, Savannah River, South Carolina ($5.2 million); calcined solids storage and plant safety improvements, Idaho Chemical Processing Plant, National Reactor Testing Station, Idaho ($3.0 million); cooling tower fire protection, gaseous diffusion plants ($3.3 million); new purge cascade, gaseous diffusion plant, Oak Ridge, Tennessee ($5.9 million); plant liquid effluent pollution control, gaseous diffusion plants ($2,6 million); cascade uprating program, gaseous diffusion plants, partial AE only ($6.0 million); transuranium contaminated solid waste treatment development facility, Los Alamos Scientific Laboratory, New Mexico ($1.6 million); and general plant projects ($10,0 million). Previously authorized projects for which additional authorization and funding is required in 1974 include: gaseous diffusion production support facilities ($45.7 million); process equipment modifications, gaseous diffusion plants ($70.0 million); and component test facility, Oak Ridge, Tennessee ($15.9 million). Projects previously authorized for which funding is required in 1974 include: component preparation laboratories, multiple sites ($7.0 million); in-tank solidification systems auxiliaries, Richland, Washington ($1.5 million); rover fuels processing facilities, National Reactor Testing Station, Idaho ($1,7 million); and atmospheric pollution control facilities, heavy water plant, Savannah River, South Carolina ($1.8 million).

2. Weapons Obligations for weapons plant and capital equipment in 1974 are estimated at $191.6 million of which $50.8 million is for new construction projects requiring authorization, $60.0 million is for projects authorized in prior years for which additional authorization is now being proposed, $3,8 million is for funding of previously authorized projects, and $77.0 million is for capital equipment not related to construction. The new construction projects include: weapons production, development, and test installations ($10,0 million), production facilities, Artillery Fired Atomic Projectiles (AFAP's), various locations ($12.0 million), high energy laser facility, Lawrence Livermore Laboratory, California ($9,7 million), acid waste neutralization and recycle facilities, Y-12 plant, Oak Ridge, Tennessee ($1.7 million), and general plant projects ($17.4 million). Previously authorized projects for which additional authorization is required in 1974 include: fire, safety, and adequacy of operating conditions projects, various locations ($25.0 million), and classified facilities, sites undesignated ($35.0 million). Projects previously authorized for which funding is required in 1974 include: laser-fusion laboratory, Lawrence Livermore Laboratory, California ($3.8 million).

3. Naval Reactor Development - Obligations for naval reactor development plant and capital equipment in 1974 are estimated at $64,1 million. This includes funding of $57.0 million for the S8G prototype nuclear propulsion plant, West Milton, New York, which was partially authorized in 1973; $2.1 million for general plant projects; and $5.0 million for capital equipment not related to construction,

4. Civilian Reactor Development - Obligations for Civilian Reactor Development plant and capital equipment in 1974 are estimated at $135.1 million, of which $19.8 million will provide for new construction projects proposed for authorization, $92.8 million for funding of projects previously authorized, and $22,5 million for capital equipment not related to construction. The new construction projects include: liquid metal engineering center facility modifications, Santa Susana, California ($3.0 million); modifications to EBR-II, National Reactor Testing Station, Idaho ($2.0 million); modifications to reactors ($2.0 million); emergency process waste treatment facility, Oak Ridge National Laboratory, Tennessee ($1.3 million); and general plant projects ($11,5 million). Funding is also proposed for the fast flux test facility ($87.8 million) and for the sodium pump test facility ($5.0 million) which were authorized in previous years.

5. Applied Energy Technology - Obligations for Applied Energy Technology in 1974 are $0.6 million, all of which is for capital equipment not related to construction.

6. Space Nuclear Systems - Obligations for Space Nuclear Systems plant and capital equipment in 1974 are estimated at $6.8
million, consisting of $5.0 million for the Pu-238 fuel form fabrication facility at Savannah River, which had been authorized
in previous years and $1.8 million for capital equipment not related to construction.

7. Physical Research - Obligations for Physical Research plant and capital equipment in 1974 are estimated at $53,7 million of which $8.1 million is for new construction projects proposed for authorization, $10.2 million is for funding on construction projects fully authorized in prior years, and $35.4 million is for capital equipment not related to construction.

The new construction projects include: $2,3 million for accelerator improvements at various sites; $2.9 million for the computation building at Stanford Linear Accelerator; and $2.9 million for general plant projects. Additional funding is also proposed for the 200 Bev accelerator, DuPage and Kane Counties near Chicago, Illinois ($10.2 million) which was authorized in previous years.

8. Controlled Thermonuclear Research Obligations for Controlled Thermonuclear Research plant and capital equipment in 1974
are estimated at $3.0 million, of which $0.2 million is for general plant projects and $2.8 million is for capital equipment not
related to construction,

9. Biomedical and Environmental Research - Obligations for Biomedical and Environmental plant and capital equipment in 1974 are estimated at $8.9 million of which $2.5 million is for general plant projects; $1.3 million for an addition to the physics building (human radiobiology facility), Argonne National Laboratory, Illinois; and $5.1 million is for capital equipment not related to Construction.

10. Regulation Activities - Obligations for regulation activities plant and capital equipment in 1974 are estimated at $1.0 million, all of which is for capital equipment not related to construction. 11. Program Support - Obligations for program support for plant and capital equipment in 1974 are estimated at $4.3 million of which $1.2 million is for construction and $3.1 million is for capital equipment not related to construction. The construction estimate of $1.2 million is for General Plant Projects ($0.8 million for administrative facilities at Headquarters and $0.4 million for the Puerto Rico Nuclear Center). The estimate for capital equipment not related to construction includes requirements for Operational Program Direction ($2,6 million); Information Services ($0.4 million) and Nuclear Education and Training ($0.1 million).

The AEC, in presenting its 1973 budget for acquisition of major computer systems, Multiple Procurement Computer Package disclosed to the Congress that as an alternative to the funding plan included in the 1973 budget request, the Commission was undertaking a multiple computer procurement in the interest of obtaining volume discounts with the additional attractive feature of deferred payment options. After evaluation of responses to the AEC's request for proposals under this multiple computer. procurement plan, the Commission selected two vendors to negotiate procurement of major computer systems at seven AEC locations, The selections were based on the exceptionally favorable economic terms proposed by the vendors.

The Commission signed a contract on July 28, 1972 with one of the vendors providing major computer systems at four AEC sites at a savings of $6,197,933 or approximately 16% below quoted prices as follows:

Type of
Computer

Quoted
Price

Cash Discount

Amount

Oak Ridge Computer Technology Center .......
Savannah River

12.

Program and Location

Nuclear Materials Program

IBM 370/155;360/195
IBM 360/195

$ 7,719,000

8,768,000

$

6,479,772
7,366,693

[blocks in formation]

The other accepted proposal has not been negotiated into a final contract because of irreconcilable differences with respect to contract terms covering delivery dates and liquidated damages. Accordingly, the Commission has requested the submission of new proposals from computer manufacturers, with the full expectation that contracts will still be successfully negotiated in 1973 for computer deliveries in 1974 with savings in the order of 20%. Realization of these expectations will necessitate 1974 obligations as follows:

Weapons program

......$ 21.6 million Physical Research program .....

8.7 million

While the above amounts are listed by specific program, the application of these funds may differ depending on the proposal or proposals finally accepted by AEC.

As noted above, funds appropriated for major computer procurements in past years would be applied in funding the acquisition of the multiple computer procurement package. Specifically, currently available funds provided in prior years' appropriations for the systems listed below will be utilized.

Major Computer, Savannah River (FY 1973)
Major Computer, Los Alamos Scientific Laboratory (FY 1973)
Major Computer, Argonne National Laboratory (Funds carried forward from FY 1972)
Miscellaneous Computer Equipment (Funds Carried forward from FY 1972)
Computer Equipment Funds Savings in FY 1973

Total Funds Applied to Multiple Procurement Computer Package through FY 1973

$ 9,250,000

9,250,000
10,000,000
3,995,067

740,000
$33.235,067

Justifications for the major computers to be acquired in FY 1974 are identified in program justification material set forth below.

« PreviousContinue »