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The Kansas City Plant is at a juncture. Unlike commercial manufacturers, we are in a position to manage the NNSA's requirements to produce high-quality, low-volume components; retain skills to sustain aging or obsolete technologies; and warehouse parts needed to maintain the 25-year life expectancy of the stockpile—at an affordable cost to the government. Over the next two years our workload will begin to escalate as we prepare for full-scale production of the Stockpile Life Extension Programs in the FY2006-FY2007 time period. Based on the Kansas City Plant's targets in the Future Years Nuclear Security Program (FYNSP) and our progress to date, I am cautiously optimistic we can successfully maintain the stockpile, while managing workforce issues and the highest infrastructure priorities.

I strongly support General John Gordon in his efforts to simplify and streamline the NNSA and its processes. A more efficient NNSA, providing appropriate oversight of labs and plants, will serve to focus our energies and efforts on important, value-added tasks. To that end, accelerating and measuring implementation of the NNSA's internal restructuring plans and processes will only enhance my optimistic outlook for our future at the Kansas City Plant.

Mr. Chairman, the Kansas City Plant is busy. We support 42 product families and 120 advanced technologies, shipping more than 60,000 product packages annually. We are producing and procuring components for every weapons system in the active stockpile. We are hiring new associates and actively addressing critical skill needs. We have begun to increase infrastructure investments to recover from funding shortfalls in the 1990s. We are developing new manufacturing capabilities and suppliers required to support the upcoming Life Extension Programs. The next few years will see significant challenges as we continue to address critical skills, and upgrade our infrastructure while preparing for sizable new production requirements driven by the Life Extension Programs. Our success is directly tied to a sustained funding profile, which fully accounts for these challenges.

As the NNSA's primary non-nuclear production plant, the Kansas City Plant is a hub for the majority of nuclear weapons complex products. From radars, to reservoirs, to sensors, to telemetry units, to analytical testing, to science-based manufacturing, we are the NNSA's one facility with the broadest skills and capabilities for turning national laboratory science into manufacturing reality—we produce robust products and these products must keep pace with technological advancements. That's why it is so important that we maintain balance between science and production. Scientific advancement is vital. But to keep pace with these advancements, we must also develop advanced manufacturing technologies, train our employees, and maintain our facilities. This brings us full circle to the issue of long-term reinvestment in and value of the Kansas City Plant as a national security asset.

Mr. Chairman, thank you for the opportunity to present these views to you. Honeywell is committed to our national defense mission and to the future success of the Kansas City Plant and nuclear weapons complex. I look forward to continuing to work with you and the Members of this Committee to address these challenges.

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ation of a state-of-the-art flexible manufacturing system, one of only a handful in the country that integrate machining and product acceptance.

Douglass has a bachelor of science degree in mechanical engineering from Kansas State University and an M.B.A. through the Rockhurst College's Executive Fellows Program. In 2001, he completed the Harvard Business School's General Managers Program. He is actively involved in education and technology activities in the States of Missouri and Kansas.

Contract Information

Honeywell Federal Manufacturing & Technologies LLC operates the U.S. Department of Energy's National Nuclear Security Administration's Kansas City Plant under contract number DE-AC04-01 AL66850.

TESTIMONY OF ROBERT A. PEDDE

PRESIDENT

WESTINGHOUSE SAVANNAH RTVER COMPANY

AIKEN, SOUTH CAROLINA

BEFORE THE U.S. HOUSE OF REPRESENTAITVES

ARMED SERVICES COMMITTEE
SUBCOMMITTEE ON MILITARY PROCUREMENT

JUNE 12, 2002

Good afternoon.

I appreciate the invitation to address you today. This is my first time to testify before your committee since becoming President of the Westinghouse Savannah River Company last August, although I am very familiar with defense complex issues, having worked as the Vice President of Defense Programs for WSRC for the previous six years.

On behalf of the WSRC, I am pleased to submit the following testimony regarding the Savannah River Site NNSA programs. The Westinghouse Savannah River Company leads an integrated team that operates the Savannah River Site. We have operated SRS since 1989.

Of the subcommittee's topics today, the one that is most relevant to our work is the defense complex infrastructure's ability to maintain the stockpile.

Presently, our primary NNSA missions are: 1) providing tritium-loaded reservoir components to support the Nuclear Weapons Stockpile Maintenance program, and 2) surveillance testing of stockpile evaluation reservoirs and components. We are also the designated architect/engineering support contractor for a potential future Modern Pit Manufacturing facility.

Currently, we have two major line-item projects underway to support the tritium mission: Tritium Modernization and Consolidation (TCON), and the Tritium Extraction Facility. Both of these projects are key elements of the Stockpile Stewardship program.

At SRS, we also support the Nuclear Nonproliferation program. SRS is the location for construction and operation of two new facilities to dispose of about 50 metric tons of surplus U.S. plutonium. WSRC is currently designated as the operator of the Pit Disassembly and Conversion Facility, while a consortium of Duke, Cogema and Stone and Webster will provide the design, construction and operation of a Mixed Oxide Fuel Fabrication Facility. WSRC will provide infrastructure services to the Mixed Oxide Fuel Fabrication Facility.

DOE's Environmental Management program serves as the landlord for SRS. DOE's Operations Office Manager at SRS reports to the Assistant Secretary for Environmental Management. Senior NNSA officials for both Defense Programs (DP) and Nuclear Nonproliferation (NN) report to their DOE Headquarters offices, respectively. As the Foster Panel and others have pointed out, there is certainly a strong need for integration among the program offices, and for consistency in the way the site does business. From my perspective, I know that the program offices recognize that, and are working to achieve that consistency.

While the DOE-EM program is not the focus of this hearing, I should point out that DOE-EM is currently accelerating the cleanup and closure of environmental management scope across the complex through the Accelerated Cleanup program. Although at the time of this writing, and exact funding for SRS has not been deterrr.ir,i-<J, the program has the potential to complete the SRS EM mission in the 3090 Ui 2020 timeframe, which would be considerably earlier than the originally projected MOpUtiofl date. At some point, there are important decisions that will have to be uiuAf. about the landlord and infrastructure functions at SRS, both for the total site ntuSlin element» of the site that directly support the enduring missions of the >T>»SA

Th« proponed FY03 Savannah River Site Defense Programs budget is $241.6 nrilli//n. An additional $9.7 million is anticipated in FY03 from the Commercial Light Wat«;r Reactor Program for the Tritium Extraction Facility line item project, This funding in sufficient to execute the core Stockpile Stewardship mission, and to mamin in pr<)«re»M on the two line item projects mentioned above.

An utockpile needs evolve, small facility projects are needed to support loading, tenting ana inspection activities associated with our missions. In addition, emergen: f.i'iliiy Mi-ciim lr>r i-quipment will surely arise. These items, along with a matcm procurement necessary to support key NNSA missions, are not fully funded today O-therwUe, the site's NNSA facilities—particularly with the anticipated completion of the TOON facility I mentioned earlier—are in excellent condition, primarily as a renull of our ability to reinvest in the program over the years.

At the beginning of this testimony, I noted that the baseline Nuclear Nonproliferation program at SRS supports DOE's plutonium disposition efforts. As of this hearing, the FY03 NN funding for SRS has not yet been determined. I will be happy to provide you additional information on that program for the record at a later time.

We are proud to continue our support for the national security missions that have been located at SRS. SRS and its local stakeholders have a long tradition of support in this area, and we appreciate the confidence that has been shown in us. I thank you for inviting me to meet with you today, and I am pleased to answer any questions you may have.

DISCLOSURE STATEMENT
Testimony of Robert A. Pedde

The Westinghouse Savannah River Company operates the Savannah River Site under contract number DE-AC09-96SR18500 with the U.S. Department of Energy.

The contract reads as follows.

"The estimated cost of the contract is the total of funding provided from October 1, 1996 to September 30, 2000, which totals $5,383,459,753.41 plus an estimated budgetary cost of $8,400,000,000 for the period October 1, 2000 through September 30, 2006, for a total estimated cost of $13,783,459,753.41."

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Civil Engineering, 1970 Lake Michigan College;

Education

Michigan State University; B.S., Associate Engineering, 1967.

Experience

As President of the Westinghouse Savannah River Company (WSRC), Bob Pedde has the highest executive position at the Savannah River Site (SRS).

In his current assignment, Mr. Pedde provides executive leadership; assures that all safety, security and environmental regulations are strictly maintained; assures safe operation of all facilities; leads the site's community and government communications; and develops long-range strategic performance objectives that will maintain the facility as an integral part of our nation's nuclear defense capabilities.

Before he was appointed President in August 2001, Mr. Pedde served from September 1999 until August 2000 as Executive Vice President of WSRC. In this role, Bob Pedde provided executive assistance to the President in the day-to-day operation of the company. He had direct responsibility for overseeing those organizations that provide sitewide responsibility for physical infrastructure support services, engineering and construction services, sitewide safeguard and security systems, operations training and assessments, and administrative services.

Bob Pedde has 30 years experience in two government-owned enterprises. At SRS, prior to being appointed Executive Vice President, he served as Vice President and General Manager, Defense Programs, from 1995 to 1999, where he maintained responsibility for the SRS tritium program.

Prior to that position, Mr. Pedde was Project Manager and later Program Manager of the Replacement Tritium Facility, and then Tritium Area Manager. He jointed Westinghouse Savannah River Company in 1989 as Project Manager, P Reactor Restart.

From 1970 to 1989, Mr. Pedde held a series of engineering and management positions with the Tennessee Valley Authority, both at Knoxville and at the Watts Bar Nuclear Plant in Spring City, Tenn. His last position with TVA was Site Director of Watts Bar, where he was responsible for technical and administrative direction for all site activities.

Mr. Pedde serves on the Board of Directors for the Energy Facilities Contractors Group, the United Way of Augusta, and the Augusta Chamber of Commerce. He is a trustee for the Heritage Schools and an active member of First Presbyterian Church of Augusta where he serves as an officer.

Mr. Pedde lives in Martinez, Ga., with his wife, Linda and daughter, Lauren.

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