The National Nuclear Security Administration lacks documented criteria for determining how and when officials should decide to use separate contract line items. The agency has not fully assessed and documented lessons learned from its use of these contract mechanisms.

These administrative gaps exist as the National Nuclear Security Administration plans to spend almost $200 billion modernizing nuclear weapons production and research infrastructure over the next decade. The agency is a semi-autonomous entity within the United States Department of Energy responsible for nuclear weapons stewardship.

The Government Accountability Office found that none of the seven management and operating contractors had established formal policies that met or substantially met all of the Cost Guide’s 12 steps for developing a reliable cost estimate for fixed-price construction subcontracts. The Government Accountability Office is a US federal government agency.

Contract line items can enhance transparency of procurement data and allow the National Nuclear Security Administration to develop separate contractor fee plans and performance evaluations for high-risk, high-value projects, according to agency officials and management and operating contractor representatives. "Separate fee plans and performance evaluations for contract line items require additional administrative resources to implement," National Nuclear Security Administration officials said.

National Nuclear Security Administration officials stated that they decide which deliverables are most appropriate to oversee through contract line items based on considerations such as total project cost, complexity, and whether there are dedicated appropriations. The National Nuclear Security Administration introduced individual contract line item numbers to some contracts beginning in 2014 to increase the visibility of specific efforts.

As of June 2026, five of the National Nuclear Security Administration’s 21 capital asset projects with approved performance baselines were covered by separate contract line items in management and operating contracts. One smaller project and two projects under a former contract were completed as separate contract line items by the agency.

Timeline

In fiscal year 2025, the National Nuclear Security Administration spent close to $24 billion on management and operating contracts.

As of June 2026, five of the National Nuclear Security Administration’s 21 capital asset projects with approved performance baselines were covered by separate contract line items in management and operating contracts.

Why It Matters

Senate Report 118-188, accompanying S. 4638, the National Defense Authorization Act for Fiscal Year 2025, includes a provision for the Government Accountability Office to review the National Nuclear Security Administration’s use of line items in its management and operating contracts. The review addresses the agency's approach to managing capital projects through its primary contracting vehicles.

The scale of the upcoming modernization effort shows the importance of established procurement criteria. With plans to spend almost $200 billion over the next decade, the methods used to track and evaluate these expenditures will have implications for oversight and accountability.