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AFMD-83-92 1 (1983-09-06)

handle is hein.gao/gaobabnco0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 ACCOUNTING AND FINANCIAL MANAGEMENT DIVISION B-207000 SEPTEMBER 6, 1983 The Honorable William V. Roth, Jr. Chairman, Permanent Subcommittee on Investigations Committee on Governmental Affairs United States Senate Dear Mr. Chairman: Subject: Department of Energy Contracts With the Decision Planning Corporation (GAO/AFMD- 83-92) This is in response to your letter of November 11, 1982, re- questing that we review certain aspects of the Department of En- ergy's (DOE's) Chicago operations office contracts with the Deci- sion Planning Corporation (DPC). Specifically, you asked us whether the method used by DPC to compute overhead resulted in the Government bearing a disproportionate share of indirect costs. You also requested a review of (1) the history of these con- tracts including an analysis of award methods, (2) the effective- ness of DOE's contract monitoring particularly with respect to the payment of contractor vouchers, and (a) tha propriety of contract- ing for this work rather than having it doie by full-time DOE per- sonnel. As we had agreed to, we briefed ygur staff on the results of our work on March 23, 1983. OBJECTIVES, SCOPE, AND METHODOLOGY Beginning in 1977, DOE's Chicago operations office awarded to DPC three cost-plus-fixed-fee contracts to.aling more than $6 mil- lion. We reviewed the history of these contracts in order to an- swer the questions you posed. In December 1982, DPC was selected to receive a fourth contract to provide management support services to the Chicago operations office. This contract, totaling approxi- mately $4.6 million, has been postponed because of a competitor's bid protest and therefore was not included in our review. We conducted field work at DPC's headquarters in Costa Mesa, California, and at DOE's Chicago operations office. To determine whether indirect costs were equitably dicl~libuted, we reviewed (911038)

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