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UNITED STATES GENERAL ACCOUNTING OFFICE
WASHINGTON, D.C. 20548
VIERGY AND MINWILSJ April 24, 1981
DIVISION
B- 203 023
The Honorable James B. Edwards III/
The Secretary of Energy cV1150
Dear Mr. Secretary:
Subject: _[eed for $200,000 Subcontract Apparently
Eliminatd by Reagan Administration
Proposal (EMD-81-81)
During an ongoing review of the Department of Energy's
(DOE) procurement practices, we became aware of a situation
requiring your immediate attention. Specifically, we are
referring to a proposed DOE-sponsored subcontract which
appears to be unneeded and to have been processed in an un-
orthodox manner. The situation involves the transfer of
$250,000 in DOE funds to the Los Alamos Scientific Labora-
tory in Los Alamos, New Mexico, which, in turn, has been
authorized by DOE to issue a $200,000 subcontract to the
MIL Corporation in Bethesda, Maryland. We are bringing this
matter to your immediate attention because DOE's timely re-
consideration of the need for this subcontract could result
in substantial monetary savings to the government.
BACKGROUND
In June 1980, the Energy Security Act (P.L. 96-294)
required DOE to establish an Office of Energy from Municipal
Waste, and to initiate new and expanded programs to commer-
cialize technologies for converting municipal wastes to
energy. Prior to this Act, DOE's Urban Waste Technology
Branch was responsible for the waste-to-energy programs but
at substantially lower funding levels. For example, shortly
after being authorized by the Act, an additional $220 million
was appropriated for the Office's fiscal year 1981 and 1982
commercialization activities. This compares to a total of
$13 million that was appropriated in fiscal year 1980 for
municipal waste programs--primarily for research and develop-
ment activities.
(300547)
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