Report on audit of implementation of the Accountability Rule

Technical Report · Fri Jan 21 04:00:00 EST 1994

DOI:https://doi.org/10.2172/10129207· OSTI ID:10129207

In 1991, DOE procurement regulations were revised to help contractors improve their performance in operating and managing DOE facilities; the accountability and liability of contractors were increased, and opportunity was provided for earning increased fees. The audit showed that DOE had spent $25.3 M in FY 1992 to implement the accountability rule with no conclusive evidence that the accountability rule was achieving its objectives. For 5 contracts, DOE had spent $22.8 M in increased contract fees and $2.5 M in administrative costs (an additional $4 M paid to adjust for inflation) without any appreciable improvements in contractor performance. Furthermore, the contract costs disallowed and recovered under the accountability rule were insignificant. Prime cause was that DOE had not fully evaluated the potential costs and benefits of the accountability rule prior to implementation. The audit also disclosed a number of issues that need to be resolved. The management agreed to conduct the recommended cost-benefit analysis, but it did not agree to suspend further application of the accountability rule until a basis is developed for measuring its benefits.

• Research Organization: USDOE Office of Inspector General, Oak Ridge, TN (United States). Eastern Regional Audit Office
• Sponsoring Organization: USDOE, Washington, DC (United States)
• OSTI ID: 10129207
• Report Number(s): DOE/IG--0339; ON: TI94007580; NC: NONE
• Country of Publication: United States
• Language: English

Related Subjects

99 GENERAL AND MISCELLANEOUS
990100
AUDITS
CONTRACT MANAGEMENT
CONTRACTORS
MANAGEMENT
RECOMMENDATIONS
US DOE
US DOE INSPECTOR GENERAL