DOE Management: Consistent Cleanup Indemnification Policy Is Needed
RCED-93-167
Published: Jul 12, 1993. Publicly Released: Sep 08, 1993.
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Highlights
Pursuant to a congressional request, GAO evaluated the Department of Energy's (DOE) approach for indemnifying its contractors against liabilities that could arise from the cleanup of the nation's nuclear weapons complex.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Energy | To ensure that DOE consistently indemnifies its cleanup contractors, the Secretary of Energy should develop a consistent environmental indemnification policy to be applied to the DOE cleanup sites. This policy should reflect existing statutory requirements, including section 119, and apply the principles contained in EPA guidelines, including: (1) restricting indemnification to those contracts where it is proven to be needed; (2) setting time and payment limits on the government's liabilities if DOE analysis indicates that EPA limits for Superfund Amendments and Reauthorization Act section 119 are not appropriate; and (3) requiring contractors to be responsible for some portion of the costs that arise from lawsuits for injury or damage caused by their negligence during cleanup activities. |
Closed – Implemented
DOE's Contract Reform Team issued its report on contract reforms in February 1994. That report includes action items on indemnification that will address some of the components of GAO's recommendations. In December 1994, DOE decided to include all liability issues in the Department of Energy Acquisition Regulations (DEAR). Contracts being renegotiated, renewed, or awarded are including a provision for contractors to use commercial insurance whenever it is available at a reasonable cost. In addition, DEAR is being updated and is in draft NPRM stage. These are all of the steps DOE believes it can reasonably pursue to address this issue.
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Topics
Contract oversightContract performanceDamages (legal)Hazardous substancesIndemnityLiability insurancePollution controlService contractsWaste disposalWaste management