Energy Management: DOE Has Improved Oversight of Its Work for Others Program

DOE action on this recommendation resulted in the issuance of Acquisition Letter 94-11 dated July 29, 1994. This letter, which expires 6 months after issuance, is a reminder to DOE's contracting officers that it is DOE's policy that DOE should not be liable for costs incurred by a contractor who performs work for others prior to the availability of funds from the sponsor. It also spells out the circumstances -- primarily if the contractor assumes liability for the costs incurred -- under which the contracting officer may allow the contractor to continue ongoing work while awaiting the receipt of additional funding from the sponsor. This is not fully responsive to our recommendation because the acquisition letter does not require the contracting officers to ensure that this provision in written into DOE's management and operating contracts. DOE could, therefore, remain liable for these costs.