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EMD-80-114 1 (1980-09-05)

handle is hein.gao/gaobabazg0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 ENERGY AND MINERALS DIVISION B-199916 SEPTEMBER 5, 1980 The Honorable John D. Dingell Chairman, Subcommittee on Energy Committee On Interstate and ~~) and Power Foreign Commerce 113234 House of Representatives Dear Mr. Chairman: Subject: 5epartment of Energy Procurement Activities 7 (EMD-80-114) Recently, the Congress and the news media have focused considerable attention on the Federal Government's procure- ment and contracting practices. This focus has occurred in part because of alleged gross abuses in Federal procurement practices, and because of Congress' increased oversight as well as a desire to reduce Federal expenditures and bal- ance the budget. The Department of Energy has come under considerable scrutiny largely because of the magnitude of its procurement expenditures--it reported contract obliga- tions of over $11 billion in fiscal year 1980. Since the Department was established in 1977, we have been evaluating the Department's procurement practices both as a part of our reviews of selected procurement-related practices Government-wide, and on more narrow Department- related reviews. For example, we recently reported that the Department uses procedures which either avoid or restrict competition, such as permitting program officials to enter into informal commitments with contractors which are then subsequently approved by a contracting officer. 1/ This practice avoids competition and weakens the Department's overall control over contract awards since it takes place outside the usual procurement process. In another recent l/The Department of Energy's Practices for Awarding Admin- istrative Contracts Need to be Improved, EMD-80-21, Nov. 2, 1979. (300535) . .:.

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