TITLE: B-305494, Department of Defense -- Obligation of Chemical Weapons Demilitarization Funds, March 27, 2006
BNUMBER: B-305494
DATE: March 27, 2006
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B-305494, Department of Defense -- Obligation of Chemical Weapons Demilitarization Funds, March 27, 2006

   B-305494

   March 27, 2006

   The Honorable Mitch McConnell

   United States Senate

   Subject: Department of Defense -- Obligation of Chemical Weapons
   Demilitarization Funds

   Dear Senator McConnell:

   In your letter of May 23, 2005, you asked us to monitor a potential
   impoundment of funds by the Department of Defense with regard to chemical
   weapons demilitarization activities at Blue Grass Army Depot, Kentucky,
   and Pueblo Depot, Colorado. Specifically, you asked GAO to monitor whether
   funds appropriated for Chemical Weapons Demilitarization at the Blue Grass
   and Pueblo sites are being properly obligated and whether the Department
   was impounding funds for chemical weapons demilitarization. GAO has
   verified that the Department obligated $103 million for chemical weapons
   demilitarization activities at Blue Grass and Pueblo. Furthermore, we have
   found no impoundment of funds occurring.

   Under the Chemical Weapons Convention ratified in 1998, the United States
   is obligated to dispose of its chemical weapons stockpile no later than
   2012. 22 U.S.C. sections 6701-6771. See also 50 U.S.C. sections 1512-1526.
   Congress has appropriated multi-year funds to the Department of Defense
   for chemical weapons demilitarization. See, e.g., Pub. L. No. 108-287,
   title VI, 118 Stat. 951, 967 (Aug. 5, 2004); Pub. L. No. 108-324, 118
   Stat. 1220, 1225 (Oct. 13, 2004).

   Concerned with delays in the development of chemical weapons
   demilitarization disposal facilities at the Blue Grass and Pueblo
   sites,[1] Congress enacted a provision in the fiscal year 2005 emergency
   supplemental appropriations act requiring that any unobligated balances of
   appropriations for Chemical Weapons Demilitarization at those two sites
   remain available for obligation solely for the destruction of the U.S.
   stockpiles of lethal chemical agents and munitions at Blue Grass and
   Pueblo. The provision also directed that funds be made available to the
   Program Manager for Assembled Chemical Weapons Alternatives program at the
   Blue Grass and Pueblo Depots not later than 30 days after enactment of the
   emergency supplemental. Pub. L. No. 109-13, sect. 1016, 119 Stat. 231,
   249-50 (May 11, 2005). Section 1016 further required the obligation of not
   less than $100 million for chemical weapons demilitarization at those
   sites not later than 120 days after enactment. Id.

   We asked the Department of Defense (Department) for information and
   obligational data in order to respond to your request and sought the
   Department's legal view on whether it was impounding appropriated funds
   intended for chemical weapons demilitarization at the two sites. Letter
   from Anthony H. Gamboa, General Counsel, GAO, to William J. Haynes,
   General Counsel, Department of Defense, Aug. 15, 2005.

   In its response, the Department advised that all fiscal year 2005 funds
   for the Assembled Chemical Weapons Alternatives program had been released
   for obligation. Letter from E. Scott Castle, Deputy General Counsel
   (Fiscal), Department of Defense, to Anthony Gamboa, General Counsel, GAO,
   Oct. 17, 2005. The Department also reported that as of September 8, 2005,
   the Assembled Chemical Weapons Alternatives program had obligated $111.8
   million, including $9.7 million for the Blue Grass Depot, $96.3 million
   for Pueblo Depot, and $5.7 million for Assembled Chemical Weapons
   Alternatives programmatic support. Id. Further, the Department reported
   that the Blue Grass and Pueblo facilities were in the "design phase" and
   that early construction activities had begun in Pueblo and were expected
   to begin in Blue Grass during fiscal year 2006. Id.

   The Department provided GAO with confirming documentation, including
   copies of contract modifications. GAO verified that the Department
   obligated $103 million for chemical weapons demilitarization activities at
   Blue Grass Army Depot, Kentucky, and Pueblo Depot, Colorado, from May
   through September 2005, as required by section 1016 of Public Law 109-13.
   As a result, we find that the Department is not impounding funds
   appropriated for chemical weapons demilitarization. We will continue to
   monitor the Assembled Chemical Weapons Alternatives program to ensure that
   any impoundment that might occur is properly reported. We will also
   monitor the Assembled Chemical Weapons Alternatives program's
   expenditures.

   Anthony H. Gamboa

   General Counsel

   ------------------------

   [1] S. Rep. No. 109-52, at 27-28 (2005) ("The Committee is concerned with
   the status of the Chemical Demilitarization program. The cost of
   operations and development of new facilities is growing at a disturbing
   rate. The increasing expenses when combined with delays in developing the
   Blue Grass and Pueblo Chemical Munitions Disposal Facilities are placing
   the nation's ability to meet the Chemical Weapons Convention Treaty
   requirements at risk.").