Skip to main content

Unauthorized Commitments: An Abuse of Contracting Authority in the Department of Energy

EMD-81-12 Published: Dec 04, 1980. Publicly Released: Feb 03, 1981.
Jump To:
Skip to Highlights

Highlights

In fiscal year 1979, the Department of Energy's (DOE) reported obligations made it the largest civil procuring agency in the Federal Government. The Federal Procurement Regulations, which govern most civilian agency purchases, give exclusive authority for establishing contracts to authorized contracting officers. However, DOE program personnel, who do not have contracting authority, have asked contractors to perform work. This circumvents established procurement regulations and eliminates the opportunity for competition. DOE has established special ratification procedures for entering into contracts after unauthorized commitments have been made. These procedures require a detailed account of why the commitment was made, reviews by the contracting officer and General Counsel, and approval by the head of the procuring activity. However, some offices have predated contracts or issued retroactive precontract authorizations instead of following DOE ratification procedures for unauthorized commitments.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Energy The Secretary of Energy should take action to eliminate violations of the Anti-Deficiency Act.
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Department of Energy The Secretary of Energy should take action to develop procedures for identifying unauthorized commitments within the Department.
Closed – Not Implemented
DOE believes that its current informal system of identifying unauthorized commitments is adequate.
Department of Energy The Secretary of Energy should take action to clearly define in the DOE regulations the circumstances under which a formal ratification can be made.
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Department of Energy The Secretary of Energy should take action to require all program offices in DOE to effectively plan procurement actions one year in advance and enter them into the existing DOE planning system.
Closed – Not Implemented
DOE stated that it already had a system in place to ensure adequate procurement planning. Although GAO found it to be poorly implemented at the time of the review, current DOE budget reductions have forced more effective implementation.
Department of Energy The Secretary of Energy should take action to amend DOE procurement regulations governing ratifications to make them consistent with the Federal Procurement Regulations.
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Department of Energy The Secretary of Energy should take action to develop a program to educate all agency personnel who are responsible for initiating procurement requests in the proper procedures for emergency procurement situations.
Closed – Not Implemented
DOE has added coverage of various procurement issues in its training of program personnel and considers this to be adequate implementation of the recommendation.
Department of Energy The Secretary of Energy should take action to develop a procurement request tracking system within each DOE program group to ensure that requests are reviewed and approved in a timely manner.
Closed – Not Implemented
DOE questioned its program groups concerning tracking of procurement requests and was assured that "appropriate controls were in place." DOE does not intend to act further.

Full Report

Office of Public Affairs

Topics

Contract administrationContract oversightContracting officersEnergyFederal lawFinancial managementInvestigations into federal agenciesIrregular procurementProgram managementProcurement