Profit-driven Proliferation, from the Company to You

TomDispatch notes the takeover of the research arm of the government's nuclear program by Bechtel. This is an interesting development. The most obvious motivation is major league Pork, but that's just part of the pie.

Privatizing the Apocalypse
By Frida Berrigan

...Started as the super-secret "Project Y" in 1943, the Los Alamos National Laboratory in New Mexico has long been the keystone institution of the American nuclear-weapons producing complex. It was the birthplace of Fat Man and Little Boy, the two nuclear bombs the U.S. dropped on Hiroshima and Nagasaki in August 1945. Last year, the University of California, which has managed the lab for the Department of Energy since its inception, decided to put Los Alamos on the auction block. In December 2005, construction giant Bechtel won a $553 million seven-year management contract to run the sprawling complex, which employs more than 13,000 people and has an estimated $2.2 billion annual budget...

At Los Alamos, the University of California has already been replaced by a "limited liability corporation," says Tyler Przybylek of the Department of Energy's Evaluation Board; and, more generally, the writing is on the containment wall. Nuclear laboratories are no longer to be intellectual institutions devoted to science but part of a corporate-business model where research, design, and ultimately the weapons themselves will become products to be marketed. The new dress code will be suits and ties, not lab coats and safety glasses. Under Bechtel, new management will lead to a "tightly structured organization" that will "drive efficiency," predicts John Browne, who directed the lab at Los Alamos from 1997-2003. "If there is a product the government wants," he concludes, "they will necessarily be focused on that. A lot more money will be at stake."

Los Alamos was the first to go. Now, the management contract for the Lawrence Livermore National Laboratory, is on the auction block as well...

...The California-based construction giant has a long history of big projects, big promises, bigger budgets and even bigger failures.

In Boston, Bechtel was put in charge of the "Big Dig," the reconstruction of Interstate 93 beneath the city. In 1985, the price tag for the project was estimated at about $2.5 billion. Now, it is a whopping $14.6 billion (or $1.8 billion a mile), making it the most expensive stretch of highway in the world. Near San Diego, citizens are still paying the bills for cost over-runs at a nuclear power plant where Bechtel installed one of the reactors backwards.

In 2003, Bechtel took this winning track record to Baghdad, where it blew billions in a string of unfinished projects and unfathomable errors. The company reaped tens of millions of dollars in contracts to repair Iraq's schools, for example, but an independent report found that many of the schools Bechtel claimed to have completely refitted, "haven't been touched," and a number of schools remained "in shambles." One "repaired" school was found by inspectors be overflowing with "unflushed sewage."

Bechtel also has a $1.03 billion contract to oversee important aspects of Iraq's infrastructure reconstruction, including water and sewage. Despite many promises, startling numbers of Iraqi families continue to lack access to clean water, according to information gathered by independent journalist Dahr Jamail. The company made providing potable water to southern Iraq one of its top priorities, promising delivery within the first 60 days of the program. One year later, rising epidemics of water-borne illnesses like cholera, kidney stones and diarrhea pointed to the failure of Bechtel's mission.

Outside of its ill-fated reconstruction contracts in Iraq, Bechtel is not known as a large military contractor, but the company has been quietly moving into the nuclear arena. It helped build a missile-defense site in the South Pacific, runs the Nevada Test Site where the United States once performed hundreds of above-and underground nuclear tests. Bechtel is also the "environmental manager" at the Oak Ridge National Lab, which stores highly-enriched uranium, and is carrying out design work at the Yucca Mountain repository where the plan to store 77,000 tons of nuclear waste has environmentalists and community activists up in arms.

At Washington State's Hanford Waste Treatment Plant, Bechtel is working on technology to turn nuclear waste into glass. But the estimated costs of building the facility to do that have doubled in one year to about $10 billion while the completion date slipped from 2011 to 2017. Members of Congress have proposed that the Nuclear Regulatory Commission take over management of the project from Bechtel because of its cost overruns and delays...

Given this track record, it's hard to make the case that Bechtel assumes the helm at Los Alamos out of an altruistic, even patriotic, desire to impose clean, lean corporate management on a complacent institution long overfed at the public trough. The question remains: Why this urge to privatize the apocalypse?

To answer that question, you have to begin with the post-Cold War quest of the nuclear laboratories for a new identity and raison d'être. The dismantling of the Berlin Wall, the loss of the other superpower as a nuclear twin and target, and an international shift in favor of nuclear disarmament sent Los Alamos and the whole U.S. nuclear complex into existential crisis: Who are we? What is our role? What do we do now that nuclear weapons have no obvious role in a world of, at best, medium-sized military enemies? Throughout the Clinton years, these questions multiplied while the nuclear arsenal remained relatively stable. More recently, with a lot of fancy footwork, a few friends in Congress, and the ear of a White House eager to be known for something other than the Long War on global terrorism, the labs finally came up with a winning solution that has Bechtel and other military contractors seeing dollar signs.

They found their salvation in a few lines of the Nuclear Posture Review, released in January 2002, where the Bush administration asserted: "The need is clear for a revitalized nuclear weapons complex that will be able, if directed, to design, develop, manufacture, and certify new warheads in response to new national requirements; and maintain readiness to resume underground testing if required."

There's gold in that there sentence. During the Cold War, spending on nuclear weapons averaged $4.2 billion a year (in current dollars). Almost two decades after the "nuclear animosity" between the two great superpowers ended, the United States is spending one-and-a-half times the Cold War average on nuclear weapons. In 2001, the weapons-activities budget of the Department of Energy, which oversees the nuclear weapons complex through its "semi-autonomous" National Nuclear Security Administration (NNSA), totaled $5.19 billion; and a "revitalized nuclear weapons complex," ready to "design, develop, manufacture, and certify new warheads," means a more than billion-dollar jump in spending to $6.4 billion by fiscal year 2006...

And that's just the beginning. The NNSA's five-year "National Security Plan" calls for annual increases to reach $7.76 billion by 2009...

Now that's not chump change, but that's likely not the whole story either.

Bechtel leading the nuclear weapons production research arm means the rest of the Company known as the Carlyle Group, the world's largest private equity firm, has an "in" on the ultimate tools for projecting Corporate clout into the world.

If they can manage to avoid any hostile takeovers, that is.