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EMD-80-2 1 (1979-11-02)

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REPORT BY THE                 RELEASED                           11o96


Comptroller General


OF THE UNITED STATES



The Department Of Energy's Practices

For Awarding And Administering

Contracts Need To Be Improved


The Department of Energy relies heavily on con-
tractors to help carry out its mission. Its expendi-
tures for goods and services during fiscal year 1978
amounted to about $8.5 billion.

GAO's review of the contracting practices which
are used for five Department of Energy organiza-
tions indicate that there are weaknesses in the pro-
curement system, including

      --contracting practices which avoid or limit
      competition,

      --contractor involvement in the perfor-
      mance of basic management functions,
      and

      --a need for more control over contract
      administration.


GAO recommends that the Secretary of Energy
take action to correct the weaknesses noted in this
report, enforce sound procurement practices, and
review and periodically monitor the Department's
procurement policies and practices.

This report responds to a request from the Chair-
man, Subcommittee on Energy and Power, House
Committee on Interstate and Foreign Commerce.


I ll I lB 1111111
    110856


457077'      7


        EMD-80-2
NOVEMBER 2, 1979


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