A $4.9 billion cost overrun for coolant supply chain
In an effort to reduce the cost of installing the new coolant system at the dam, the Army is cutting the amount of coolant it is ordering from a leading supplier, according to people familiar with the matter.
The new order would come from United Technologies.
The Army has been trying to reduce its cooling requirements as part of a $5.2 billion plan to replace aging Coolant Control Systems at the Oroville Dam.
The cost savings are being made in large part by cutting back on the amount the Army uses.
The savings come as the Army has had to spend billions of dollars replacing aging equipment, including the Army’s aging supply chains for the air defense systems, artillery systems and helicopters.
U.S. Army/Associated PressA U. S. Army photo shows a man installing a new cooling system at Oroville dam.
The system is to replace existing equipment that the Army says was built improperly.
Army says it’s cutting costs to meet the growing demand for cooling.
(Reuters photo: Andrew Harnik)In a separate report on Tuesday, the U.N. Office of the High Commissioner for Human Rights said the dam had received a total of $3.3 billion for upgrades since the 2016 dam collapse, but had been hit by a total cost overrun of $4,919,000.
That figure includes costs related to replacing outdated coolant systems and other equipment that was not designed to withstand the extreme temperatures and humidity in the summer.
The United States, the United Kingdom, France, Germany and Italy also have spent millions of dollars upgrading the dam.
In 2017, the US Army announced it had spent $6.3 million to improve the cooling systems and equipment at Orofords Oroville and Sacramento dams.
The upgrades to the water system were approved by the Army Corps of Engineers.