Energy Management: Tightening Fee Process and Contractor Accountability Will Challenge DOE
RCED-92-9
Published: Oct 30, 1991. Publicly Released: Dec 05, 1991.
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Highlights
Pursuant to a congressional request, GAO provided information on the Department of Energy's (DOE) appraisal process for management and operating contractors, focusing on the: (1) effectiveness of DOE use of performance objectives to set expectations and evaluate contractor performance; (2) effectiveness of DOE use of data from on-site reviews to evaluate contractor performance for award fee purposes; and (3) effect of new DOE award fee regulations on the performance evaluation and award determination process.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Energy | The Secretary of Energy should ensure continued improvement in the performance evaluation and award determination processes by: (1) requiring that specific, measurable performance objectives be developed; (2) developing procedures to communicate to the contractor what is expected and how it will be measured; and (3) establishing procedures to ensure that those requirements are implemented consistently by all DOE organizations that take part in the award fee process. |
Closed – Implemented
Initially, DOE concurred, indicating that it was carrying out similar recommendations made by an internal review. DOE now indicates the only action needed was the continuation of the policies and practices already implemented. These policies and procedures, however, existed during the period reviewed and did not prevent the problems identified.
|
| Department of Energy | The Secretary of Energy should: (1) ensure that the results of on-site reviews are given appropriate consideration in the award determination process; (2) establish procedures for requiring and tracking contractor responses to all review findings; (3) ensure that contractor responses to previous review findings are considered in all on-site reviews; and (4) establish procedures for ensuring that all deficiencies identified in performance evaluations are addressed in contractor self-assessments. |
Closed – Implemented
DOE issued clarifying guidance requiring the program secretarial officers to establish controls and tracking systems to ensure review findings are considered in fee determinations, and ensure that contractors respond to all findings and reviews consider actions on all previous findings. DOE field office managers were also reminded of the contractors' self assessments requirements.
|
| Department of Energy | The Secretary of Energy should ensure that procedures for determining contractor liability for lost or damaged property and avoidable costs are in place and that sufficiently trained staff are available to implement the new accountability requirements, or delay the planned increase in award fees until DOE is ready to hold the contractors accountable. |
Closed – Implemented
DOE agreed that implementing the accountability requirement requires new procedures, increased staff training, and realignment of field resources and that sufficient time is available to include the changes as management and operations contracts are renewed. If a field office and contractor are not ready, the program will be run on a test basis if implementation is not made by the contractor.
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Topics
AccountabilityContract oversightContract performanceContractor paymentsCost overrunsCost plus award fee contractsEvaluation methodsManagement and operating contractsPerformance measuresPerformance appraisal