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Title: Audit report: Bechtel Jacobs payroll creation

Abstract

The Oak Ridge Operations Office (Operations Office) awarded a contract to the Bechtel Jacobs Company, LLC (Bechtel Jacobs) in December 1997. The terms of the contract require Bechtel Jacobs to create new jobs in the Oak Ridge area with a cumulative payroll of $427 million through Fiscal Year (FY) 2003. In FY 1998, the contract required Bechtel Jacobs to create $11 million in new payroll. The objective of the audit was to determine if Bechtel Jacobs met its commitment to create at least $11 million in new payroll in the Oak Ridge, Tennessee area through September 30, 1998. We could not determine if Bechtel Jacobs met its new payroll commitment. Bechtel Jacobs reported that it created $13.5 million in new payroll through September 30, 1998. In our opinion, the Department was not provided with sufficient data to fully verify that all claimed payroll had been created. The Operations Office verified that Bechtel National, Inc., and Jacobs Engineering Group Inc., created $4.9 million in new payroll through September 30, 1998. However, the only data supporting the remaining $8.6 million claimed by Bechtel Jacobs were letters from local companies showing the amount of new payroll claimed. The Operations Office did not requiremore » Bechtel Jacobs to obtain sufficiently detailed records to support the local companies' claims, and accepted the letters as adequate support. The Operations Office believed that company officials would not sign payroll creation claims unless the claims were true. As a result, the Department has little assurance that Bechtel Jacobs created $13.5 million in new payroll, and Bechtel Jacobs may have received up to $4.5 million in fee to which it was not contractually entitled.« less

Authors:
Publication Date:
Research Org.:
USDOE Office of Inspector General, Office of Audit Services, Washington, DC (US)
Sponsoring Org.:
USDOE Office of the Inspector General (IG) (US)
OSTI Identifier:
6664
Report Number(s):
ER-B-99-06
TRN: AH200116%%366
Resource Type:
Technical Report
Resource Relation:
Other Information: PBD: 1 Apr 1999
Country of Publication:
United States
Language:
English
Subject:
99 GENERAL AND MISCELLANEOUS//MATHEMATICS, COMPUTING, AND INFORMATION SCIENCE; AUDITS; CHARGES; CONTRACTORS

Citation Formats

Brendlinger, T L. Audit report: Bechtel Jacobs payroll creation. United States: N. p., 1999. Web. doi:10.2172/6664.
Brendlinger, T L. Audit report: Bechtel Jacobs payroll creation. United States. https://doi.org/10.2172/6664
Brendlinger, T L. 1999. "Audit report: Bechtel Jacobs payroll creation". United States. https://doi.org/10.2172/6664. https://www.osti.gov/servlets/purl/6664.
@article{osti_6664,
title = {Audit report: Bechtel Jacobs payroll creation},
author = {Brendlinger, T L},
abstractNote = {The Oak Ridge Operations Office (Operations Office) awarded a contract to the Bechtel Jacobs Company, LLC (Bechtel Jacobs) in December 1997. The terms of the contract require Bechtel Jacobs to create new jobs in the Oak Ridge area with a cumulative payroll of $427 million through Fiscal Year (FY) 2003. In FY 1998, the contract required Bechtel Jacobs to create $11 million in new payroll. The objective of the audit was to determine if Bechtel Jacobs met its commitment to create at least $11 million in new payroll in the Oak Ridge, Tennessee area through September 30, 1998. We could not determine if Bechtel Jacobs met its new payroll commitment. Bechtel Jacobs reported that it created $13.5 million in new payroll through September 30, 1998. In our opinion, the Department was not provided with sufficient data to fully verify that all claimed payroll had been created. The Operations Office verified that Bechtel National, Inc., and Jacobs Engineering Group Inc., created $4.9 million in new payroll through September 30, 1998. However, the only data supporting the remaining $8.6 million claimed by Bechtel Jacobs were letters from local companies showing the amount of new payroll claimed. The Operations Office did not require Bechtel Jacobs to obtain sufficiently detailed records to support the local companies' claims, and accepted the letters as adequate support. The Operations Office believed that company officials would not sign payroll creation claims unless the claims were true. As a result, the Department has little assurance that Bechtel Jacobs created $13.5 million in new payroll, and Bechtel Jacobs may have received up to $4.5 million in fee to which it was not contractually entitled.},
doi = {10.2172/6664},
url = {https://www.osti.gov/biblio/6664}, journal = {},
number = ,
volume = ,
place = {United States},
year = {Thu Apr 01 00:00:00 EST 1999},
month = {Thu Apr 01 00:00:00 EST 1999}
}