Obligations for the Weapons Program for FY 1970 are estimated at $119,681,000

of which:

SECTION A - Obligations for Construction Projects:

The projects comprising Section A, which are requested for authorization in FY 1970 or which were previously authorized and for
which a request for appropriation is being made in FY 1970, are:

1. Project 70-3-a Weapons production, development and test installations

$10,000,000

scope and nature of these requirements can be foreseen in sufficient detail to include them as separate budget projects. Prior WEAPONS PROGRAM continued The magnitude and complexity of current experience has proven the inestimable value of this type of project authorization. and proposed production, development, and test programs indicate that we may expect requirements on short notice to provide development and/or production plant capabilities needed to meet new requirements and to assure the highest level of safety in daily operations.

Details of Cost Estimate

The indefinite nature of the anticipated work precludes inclusion of details of cost.
2. Project 70-8 General plant projects

$ 15,250,000
This project for general plant improvements includes construction and/or modifications of roads (on and off-site), utilities,
minor structures, and technical facilities required in the operation of weapons program installations. Included are such
items as (a) new minor research or production facilities, (b) minor additions or modifications to Nevada Test Site facilities,
(c) additions to existing structures at the research and production site, and (d) improvements within existing facilities.
The project covers (a) all of the general plant requirements of the Lawrence Radiation Laboratory-Livermore and the Los Alamos
Scientific Laboratory, (b) the main camp and forward weapons areas at the Nevada Test Site, (c) the general plant requirements
of the Albuquerque Operations Office and its contractors, and (d) the general plant requirements of Y-12 at Oak Ridge.
3. Project 68-2-a New weapons production capabilities, various locations

$315,000,000
This project provides for new capabilities and capacities required for the production of new nuclear warheads. It covers the
cost of capital additions and improvements required at various plants comprising the weapons production complex in order to
provide adequate facilities, capabilities and capacities to produce the new warheads in the time frame and in the estimated
quantities required by the DOD. The facilities needed to meet the new requirements are not available within the weapons pro-
duction complex. The new design features of the warhead require new techniques which will have varying impacts on the weapons
production complex. Depending upon the final configuration of warhead design features, the facilities needed may be somewhat
different than that currently proposed.

This project was previously approved at an estimated cost of $285,000,000.

The increase of $30,000,000 in the total estimated

cost of the project is based upon more complete product definitions which have resulted in better and more advanced engineering
Provision is also made for escalation of labor costs beyond the amounts included in the
and facility designs and estimates.
Of the $30,000,000 increase, $13,000,000 is required in FY 1970 and the remaining $17,000,000 is needed in
previous estimate.

FY 1971.

Details of Cost Estimate:

&.

b.

Engineering, design and inspection averages 13.7% of construction costs, Item b

Construction costs

(1) (2)

Improvements to land

Buildings

(a) New buildings and/or additions

(b)

Building modifications

(3)

Other structures

General GILLER. With the chairman's permission I would like to discuss the general weapons program without reference to dollars for a few moments to put it into sight and scope.

Then we can talk about the actual dollars involved in the program in the latter part.

Mr. WHITTEN. Please proceed.

General GILLER. As I am sure the committee is aware, the AEC is responsible for the research, development, test, and manufacture of all nuclear weapons used by the Department of Defense. The devices that the Department of Defense orders from us are the result of a mutually agreeable system in which we tell them what is possible for us to manufacture and they check their requirements, and those that match they decide wether they want to order.

There is an organization called the Military Liaison Committee, which is the interface between the Atomic Energy Commission and the Department of Defense insofar as weapons matters are concerned. That is a formal mechanism that reviews these.

WEAPONS COMPLEX

the

For the benefit of those who perhaps are not completely aware of the nuclear weapons side of the AEC, my first chart shows you so-called weapons complex. (See map, p. 173.)

In this chart there are 15 major installations which support the weapons program. They are AEC owned but contractor operated. We have contracts with many companies and the University of California.

Mr. WHITTEN. Cost plus or negotiated?

General GILLER. I understand it is a cost plus fixed fee. The cost is budgeted as if it were a Government laboratory in every sense of

the word.

On the chart you will see from the red circles the three laboratories-Livermore, Los Alamos, and Sandia. Richland is a small lab doing little work for this program.

Sandia has an organization both at Albuquerque and Livermore and they are the weaponeers. They do the mechanical and electrical portions of the weapons.

Where it says "STS" and "NTS", we have two triangles in Nevada. Those are the NTS, Nevada test site, and STS is supplemental test site. STS is also at Amchitka.

When the weapons are designed and engineered they are transferred to the organization which is indicated by the black squares. These are the manufacturing portion of the Commission's activity. It takes all eight of those black squares to make a single weapon. We specialize in specific parts at a specific plant. This is Rocky Flats where we had the fire, and this is where we do the plutonium work. Rocky Flats therefore, is a single-purpose plant. So are the others.

Kansas City, for example, is where our electronics work is performed. There are approximately 37,000 contract employees in the production complex. The value of that complex is greater than about $1.7 billion.