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EMD-79-85 1 (1979-07-02)

handle is hein.gao/gaobaazlk0001 and id is 1 raw text is: iZE, STRICTED - Not to be released outsido the Oenc--' AcceauitF-g, Offca except on the basis of op@Gi ai, .= WASHINGTON, D.C. 20548 RELEASED 4E GY ANo MIM-ALS July 2, 1979 flIVISION B-178205.98 The Honorable John A. Durkin 109834 United States Senate Dear Senator Durkin: At your request we examined the Department of Energy's policies and implementing procedures for avoiding conflicts of interest when private technical consulting and manage- ment support organizations contract with the Department. As agreed to in discussions with your office, we limited our work to contracts awarded by the Department's head- quarters purchasing activity. In 1978, the Department developed a new conflicts-of- interest regulation that went into effect on January 11, 1979. It superseded Temporary Regulation No. 35, issued on June 24, 1977, by the former Energy Research and De- velopment Administration whose functions were transferred to the Department on October 1, 1977. Temporary Regulation No. 35 was used by the Department from that time until the new regulation was issued. We could not form an opinion as to the effectiveness of the new regulation because of the short time in which it has been applicable, and we found only one contract awarded under the new regulation. Accordingly, as arranged with your office, we are primarily furnishing an informational report which provides background on orqanizational conflicts of interest, including the legal responsibilities imposed on the Secretary of Energy and potential contractors to avoid conflicts of interest. The report also discusses the significant improvements in the new regulation, including procedures for its implementation. We did find, however, numerous contracts awarded under the prior regulation which should be brought under the new regulation. We are recommending that the Secretary of Energy promptly take action to bring these contracts under the new regulation. (See page 6.) EMD-79-85 (300532)

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