Energy Management: Systems Contracting Weaknesses Continue

DOE: (1) required its contractors to perform cost/benefit analyses of systems contractors implemented at DOE facilities; and (2) reviewed the analyses, including those prepared by contractors operating the Stanford and Berkeley facilities, to ensure that they were adequate. On April 20, 1994, DOE also issued guidance on establishing and implementing controls over systems contracts. However, DOE did not review its field offices' plans for implementing the guidance as discussed in DOE's initial response to the recommendations. Further, DOE did not take action to ensure that systems contracts are primarily used to purchase commonly used merchandise specified in the contract, as discussed in the recommendations.

As is customary, DOE tracked the status of its corrective actions on recommendations contained in this report. In June 1994, DOE certified that all of its corrective actions had been completed. Consequently, DOE terminated the recommendations in its audit tracking system. This certification was premature because DOE had not reviewed its field offices' plans for implementing DOE's new systems contracting guidance. Also, DOE had not taken action to ensure that systems contracts were primarily used to purchase commonly used merchandise specified in the contract, as recommended in the report.