Nuclear Nonproliferation: DOE Needs Better Controls to Identify Contractors Having Foreign Interests
RCED-91-83
Published: Mar 25, 1991. Publicly Released: Apr 25, 1991.
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Highlights
Pursuant to a congressional request, GAO reviewed whether the Department of Energy (DOE) and three of its weapons laboratories complied with DOE regulations and procedures designed to protect the United States against uncontrolled transfers of nuclear weapons-related technology or material to entities that are foreign owned, controlled, or influenced (FOCI) U.S. companies performing classified work for DOE.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Energy | To increase the effectiveness of regulations for preventing foreign access to classified information and lessen the burdensome nature of FOCI reviews, the Secretary of Energy should revise DOE acquisition regulations to transfer FOCI determination responsibility from contracting officers to Office of Safeguards and Security (OSS) personnel. |
Closed – Implemented
OSS submitted the proposed changes to the DOE Acquisition Regulation on September 16, 1991, to the DOE Office of Procurement, Office of Policy, PR-121, which, when approved, will transfer FOCI determination responsibility from the contracting officers to OSS personnel. In the interim, DOE issued an acquisition letter, dated March 4, 1992, that officially transfers responsibility.
|
| Department of Energy | To increase the effectiveness of regulations for preventing foreign access to classified information and lessen the burdensome nature of FOCI reviews, the Secretary of Energy should revise DOE acquisition regulations to require a FOCI determination only before awarding a classified contract to an uncleared company. |
Closed – Implemented
DOE is revising its acquisition regulations to reduce the need for a separate FOCI determination before each contract award. In the interim, DOE issued an acquisition letter, dated March 4, 1992, providing for this requirement.
|
| Department of Energy | To increase the effectiveness of regulations for preventing foreign access to classified information and lessen the burdensome nature of FOCI reviews, the Secretary of Energy should revise DOE acquisition regulations to require all cleared contractors working with classified matter to update their FOCI information as directed by OSS or at least every 5 years. |
Closed – Implemented
DOE is revising its acquisition regulations to require FOCI information updated as directed by OSS or at least every 5 years. In the interim, DOE issued an acquisition letter, dated March 4, 1992, providing for this requirement.
|
| Department of Energy | To provide more consistency in FOCI regulations governmentwide, the Secretary of Energy should explore the feasibility of entering into an interagency agreement with DOD that would result in DOE acceptance of DOD FOCI determinations. |
Closed – Implemented
DOE has thoroughly explored the feasibility of entering into an interagency agreement with DOD that would result in DOD acceptance of DOE's FOCI determinations. Although, according to DOE officials, significant differences exist between the two programs, DOE and DOD have reached a reciprocity agreement to use each others' FOCI determinations involving national security information in the "Work for Others Program."
|
| Department of Energy | To strengthen DOE FOCI internal controls, the Secretary of Energy should require management and operating contractors to maintain reliable computer-based systems that identify all classified contracts. |
Closed – Implemented
On November 30, 1992, all relevant DOE assistant secretaries and office directors were directed by the Office of Security Affairs to ensure that all contractors under their cognizance begin to maintain reliable tracking systems that identify all classified contracts.
|
| Department of Energy | To provide more consistency in FOCI regulations governmentwide and strengthen DOE FOCI internal controls, the Secretary of Energy should develop written guidelines for OSS reviews of FOCI questionnaires. |
Closed – Implemented
On September 30, 1992, written guidelines and procedures for handling OSS FOCI reviews were approved and implemented by the Office of Security Affairs.
|
| Department of Energy | To strengthen DOE FOCI internal controls, the Secretary of Energy should revise the current FOCI questionnaire to include: (1) additional questions applicable to contracts with individual consultants; (2) a penalty notice on false, misleading, or incomplete statements; and (3) a requirement to identify all affiliated parent companies. |
Closed – Implemented
DOE took alternative action on the recommendation on contracts with individual consultants by deciding to adjudicate FOCI issues during its personnel security clearance process. The recommendation to identify all affiliated parent companies has been implemented. However, the recommendation to include a penalty notice as part of the questionnaire will not be implemented because of language contained in the Federal Acquisition Reform Act of 1996, which relaxes the certification process.
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Topics
Classified defense informationDual-use technologiesForeign corporationsForeign investments in USGOCOInternal controlsNational defense operationsNuclear proliferationNuclear weapons plant securityTechnology transfer