DOE should strengthen its controls over award fees to contractors
The Department of Energy hires contractors to run its government-owned, energy- and defense-related research and production facilities. DOE furnishes the plants and equipment, pays employee salaries, and provides the contractors with working capital through letters of credit. Most contractors also receive a fee for their services. DOE favors using award-fee contracts, where the fee amount partially depends on the quality of the contractor's performance. In 1982, six DOE field offices administered 25 award-fee contracts totaling almost $2.8 billion and paid these contractors about $58 million in fees. GAO concludes that DOE needs to improve its guidance and practices for calculating allowable fees. DOE also needs to expand its periodic reviews of field offices' procurement operations to include evaluations of how field offices are determining fee amounts.
- Research Organization:
- General Accounting Office, Washington, DC (USA). Resources, Community and Economic Development Div.
- OSTI ID:
- 5451419
- Report Number(s):
- GAO/RCED-84-39; ON: DE84900546
- Country of Publication:
- United States
- Language:
- English
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