Department of Energy: Contract and Project Management Concerns at the National Nuclear Security Administration and Office Of Environmental Management

The Department of Energy (DOE) manages over 100 construction projects with estimated costs over $90 billion and 97 nuclear waste cleanup projects with estimated costs over $230 billion. DOE has about 14,000 employees to oversee the work of more than 93,000 contractor employees. Due to DOE's history of inadequate oversight and management of contractors, GAO continues to include DOE contract and project management on its list of government programs at high risk for fraud, waste, abuse, and mismanagement. This testimony discusses (1) recent GAO work on contract and project management within two of DOE's largest program offices--the National Nuclear Security Administration (NNSA) and the Office of Environmental Management (EM), (2) preliminary results of ongoing GAO work on project management at NNSA's Mixed Oxide Fuel Fabrication Facility (MFFF) project at the Savannah River Site in South Carolina, and (3) actions needed by NNSA and EM to improve contract and project management. GAO's reports over the past 3 years have contained nearly 60 recommendations collectively calling for DOE to ensure that project management requirements are consistently followed, to improve oversight of contractors, and to strengthen accountability. While DOE has generally agreed with these recommendations and some actions have been taken, the majority are still open and awaiting action by DOE.