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EMD-77-59 1 (1977-08-17)

handle is hein.gao/gaobaacob0001 and id is 1 raw text is: DOCUMENT RESUME 030 94I - [ 2313 4t62 1 ; (Or - Firs+ Federal Attempt to Demonstrate a Synthetic Fos il /nergy Technology, A Failure. EMr-77-59; B-178205. August 17, 1977. 6 pp. + 2 appendices (16 pp,.),. Report to Pep. John D. Dingell, Chairman, House Committee on Interstate and Foreign Commerce: Energy and Power Subcommittee; by Elmer B. Staats, Comptroller General. Issue Alea: Energy: Pole of Fossil Fuels in Meeting Future Needs (1609). Contact: Energy and Minerals Div. Bdget Function: Natural Resources, Environment, and Energy: Energy (305). Organization Coneorned: Energy Research and Development Administration; Coalcen Co.; Ken-Tex Energy Corp. Congressional Relevance! House Committee on Interstate and Foreign Commerce: Energy end Pcwer Subcommittee. Authority: Federal Nonnuclear Research and Development Act of 1974 (P.Al.. 93-577),. Questions were rdised by Congress concerning the Energy Research anO Development Administration's (EI:DA's) ainistration of d contract to demonstrate a process for converting coal to cleat boiler fuel, efforts to safeguard against organizational conflicts of interest in awarding and administering con+,-acts for fossil energy demonstration plants, and reasons for rejecting a proposal for a gasification demonstration plant. Findinas/Conclusions: The first Federal attemp: to demonstrate a synthetic fossil energy technology by converting coal to a clean burning liguid fuel had many technical and managerial ?roblems. It failed in its initial phase despite a $10 million cost overrun and a 14 1/2 month time overrun and was terminated on June 15, 1977. ERDA considered possible organizational conflicts of interest in awarding and aiministerirg contracts for the demonstration plants, but did not require lisclosure of interest statements or conflict of in+.erest clauses in awarding such contiacts. ERDA rejected the gasification demonstration plant proposal primarily because the compan7 was unwilling to accept the 50-50 Government industry cost-suaring requirement3. Recommendations: Tc avoid repetition of Lhe failure of the first attempt, the ERDA Administrator should: 1' adequately resolve significant technical problems before the demonstration plant phase is begun; 2) require the development and formal approval of project plans before projects are started and when changes are proposed; and 3) require the establishment and implementation of formal project monitoring systems which would enable ERDA management to track project progress and costs. To preclude possible organizational conflicts of interest, ERDA should develop and implement procedures requiring a formal, documented analysis of possible conflicts of interest before awarding research ani development

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