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B-305494 1 (2006-03-27)

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  SGAO
       Accountability * Integrity  Reliability
United States Government Accountability Office
Washington, DC 20548


         B-305494


         March 27, 2006

         The Honorable Mitch McConnell
         United States Senate

         Subject: Department of Defense -- Obligation of Chemical Weapons Demilitarization
                  Funds

         Dear Senator McConnell:

         In your letter of May 23, 2005, you asked us to monitor a potential impoundment of
         funds by the Department of Defense with regard to chemical weapons
         demilitarization activities at Blue Grass Army Depot, Kentucky, and Pueblo Depot,
         Colorado. Specifically, you asked GAO to monitor whether funds appropriated for
         Chemical Weapons Demilitarization at the Blue Grass and Pueblo sites are being
         properly obligated and whether the Department was impounding funds for chemical
         weapons demilitarization. GAO has verified that the Department obligated
         $103 million for chemical weapons demilitarization activities at Blue Grass and
         Pueblo. Furthermore, we have found no impoundment of funds occurring.

         Under the Chemical Weapons Convention ratified in 1998, the United States is
         obligated to dispose of its chemical weapons stockpile no later than 2012. 22 U.S.C.
         §§ 6701-6771. See also 50 U.S.C. §§ 1512-1526. Congress has appropriated multi-year
         funds to the Department of Defense for chemical weapons demilitarization. See, e.g.,
         Pub. L. No. 108-287, title VI, 118 Stat. 951, 967 (Aug. 5, 2004); Pub. L. No. 108-324, 118
         Stat. 1220, 1225 (Oct. 13, 2004).

         Concerned with delays in the development of chemical weapons demilitarization
         disposal facilities at the Blue Grass and Pueblo sites,' Congress enacted a provision in
         the fiscal year 2005 emergency supplemental appropriations act requiring that any
         unobligated balances of appropriations for Chemical Weapons Demilitarization at


         1 S. Rep. No. 109-52, at 27-28 (2005) (The Committee is concerned with the status of
         the Chemical Demilitarization program. The cost of operations and development of
         new facilities is growing at a disturbing rate. The increasing expenses when
         combined with delays in developing the Blue Grass and Pueblo Chemical Munitions
         Disposal Facilities are placing the nation's ability to meet the Chemical Weapons
         Convention Treaty requirements at risk.).