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EMD-82-35 1 (1982-04-22)

handle is hein.gao/gaobabdfh0001 and id is 1 raw text is: I I ir COMPTROLLER GENERAL OF THE UNITED STATES WASHINGTON D.C. 20548 REST:!CT . .... j , , . ', ' H eneral Accoulitg 0i:; . ,, n :;:b .: 6, specitiqc ;ppoVal B-206892 - f ice of Coiiressicwual APRIL 22, 1982 RELEASED The Honorable James A. McClure Chairman, Committee on Energy and Natural Resources United States Senate Dear Mr. Chairman: Subject: The Subcontracting Practices of Large Department of Energy Contractors Need to Be Improved (EMD-82-35) On October 29, 1980, the former Chairman, Senate Committee on Energy and Natural Resources requested that we review the sub- contracting practices of major Department of Energy (DOE) con- tractors, particularly those operating national laboratories or Other Government-owned, contractor-operated installations. In fiscal year 1980, these contractors initiated about 900,000 pro- curement actions totaling at least $2.4 billion. Yet, there was very little information available to the Committee on the accept- ability of their procurement practices or whether they were adhering to the principles of Federal procurement regulations. Following your appointment as Committee Chairman, we dis- cussed this request with your office and agreed to make some ad- justments in our scope of work. At the completion of our review, we also briefed your office on the results of our work and, at your office's request, are summarizing our findings and recommen- 4ations in this letter. Federal procurement regulations do not apply per se to DOE operating contractors. Moreover, DOE officials believe that Strict adherence to these regulations could be counterproduc- tive and prevent the contractors from efficiently and effectively carrying out their assigned tasks. These contractors are re- quired, however, to follow procedures which approximate most aspects of the Federal regulations and which are intended to guarantee open competition and reasonable prices for goods and services. (300543) 118308

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