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RCED-94-249R 1 (1994-07-11)

handle is hein.gao/gaobackpn0001 and id is 1 raw text is: 1120jn G~o United States General Accounting Office Washington, D.C. 20548 Resources, Community, and Economic Development Division B-257581 July 11, 1994 Mr. Donald W. Pearman, Jr. Acting Associate Deputy Secretary for Field Management Department of Energy Dear Mr. Pearman: We recently examined the Department of Energy's (DOE) property management activities at its Savannah River Site in South Carolina and Oak Ridge Operations Office in Tennessee. Oak Ridge's principal management and operating contractor is Martin Marietta Energy Systems. One aspect of the work completed at Oak Ridge warrants this correspondence to you concerning Martin Marietta's control over government-owned property in the possession of its subcontractors.1 In summary, we found that Martin Marietta does not have a system for tracking and accounting for government-owned property in the possession of its subcontractors or a system to ensure that subcontractors have procedures to manage and control government-owned property despite regulations and contract and subcontract provisions requiring Martin Marietta to do so. Although such problems have been cited numerous times in DOE's property and procurement reviews-- dating back to at least 1988--the problems still have not been corrected. Furthermore, DOE's Oak Ridge Operations Office has not ensured that Martin Marietta take corrective actions. As a result of these continuing weaknesses, Oak Ridge does not know which subcontractors have government-owned property in their possession, what property they have, or what its total value is. In mid-May 1994, Oak Ridge officials 'We focused our review on the management of what DOE calls personal property, which the agency defines as property of any kind or interest therein, except real property; federal government records; nuclear and source materials; atomic weapons; and by-product materials. GAOIRCED-94-249R, DOE's Property Management

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