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RCED-84-39 1 (1983-11-22)

handle is hein.gao/gaobabeik0001 and id is 1 raw text is: I ~ ~


BY THE US, GENERAL ACCOUNTING OFFICE


Report To The Secretary

Of Energy









DOE Should Strengthen Its

Controls Over Award Fees

To Contractors


The Department of Energy hires contractors
to run its government-owned, energy- and
Idefense-related research and production
'facilities. DOE furnishes the plants and
Iequipment, pays employee salaries, and
]provides the contractors with working capi-
,tal through letters of credit. Most contrac-
tors also receive a fee for their services.
DOE favors using award-fee contracts,
where the fee amount partially depends on
the quality of the contractor's performance.

In 1982, six DOE field offices administered
25 award-fee contracts totaling almost $2.8
billion and paid these contractors about $58
million in fees.

GAO concludes that DOE needs to improve
its guidance and practices for calculating
allowable fees. DOE also needs to expand
its periodic reviews of field offices' pro-
curement operations to include evaluations
of how field offices are determining fee
amounts.




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    7GAO/RCED-84-39
                                                       NOVEMBER 22, 1983

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