U.S. Department of Energy
Active Facilities Environmental Liabilities
Business Objective:
DOE needed to account for future environmental liabilities associated with= cleaning up active facilities due to lack of data on contamination.
PPC Solution:
PPC developed a successful estimating methodology based on parametric modeling of facility deactivation and decommissioning activities using existing and field supplied data.
Project Details:
• Estimated about $18 billion in cleanup costs for about 1,700 facilities at about 20 DOE sites.
• Employed Monte Carlo simulation to account for cost uncertainties.
• Results incorporated into annual DOE Accountability Report.
Project Results:
• DOE achieved a "clean" opinion on its audited financial statement in response to initial PPC effors - one of only two federal agencies to do so in 1996.
• Active facilities estimate has consistently met increasingly stringent auditor requirements for ten years.