Audit of the cost effectiveness of contracting for headquarters support services
This report describes the finding and recommendations on the audit of contractor costs for support services at Department of Energy (DOE) Headquarters. The objective was to determine whether the Office of Management and Budget (OMB) Circular A-76 requirement for new and existing support services contracts was properly implemented. DOE spends about $229 million on support services annually. The audit found that, on average, the costs to perform the work in-house were 40 percent less than contractor costs. The contracted activities were nevertheless continued because DOE policy did not require a cost comparison analyses as part of the program office request for support services. In addition, program officials were reluctant to perform cost comparisons because of concerns about the time required to complete the cost analysis and the availability of additional Federal positions needed for conversion to in-house performance. For the contracts reviewed, DOE could have saved $16.3 million by performing these services in-house rather than by contract.
- Research Organization:
- USDOE Office of Inspector General, Washington, DC (United States)
- Sponsoring Organization:
- DOE; USDOE, Washington, DC (United States)
- OSTI ID:
- 5002069
- Report Number(s):
- DOE/IG-0297; ON: TI92000095
- Country of Publication:
- United States
- Language:
- English
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