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RCED-85-7 1 (1985-04-12)

handle is hein.gao/gaobabnrb0001 and id is 1 raw text is: S7~ I SI ~*~:oU~lS~ WASHINGTON, D.C. 20548 S ~1 RELEASED 'lllll v - -the GeOhral ~COMMUNtTY. -- ~ ot~ h e~S CDEVELOPMENT be outsl i-preva% ISION *jtST to -'s of A-26u'75 API B-2 16375 by thO s '~u The Honorable Mike Synar Chairman, Subcommittee on Environment, Energy, and Natural Resources Committee on Government Operations House of Representatives Dear Mr. Chairman: Subject: Selected Management Activities at the Naval Petroleum Reserve, California (RCED-85-7) Your January 20, 1984, letter asked us to review certain as- pects of the operations of the Department of Energy's (DOE) Naval Petroleum Reserve, California (NPRC). Specifically, we focused on the process used in establishing the fee for the contractor to operate NPRC in fiscal year 1984, the adequacy of NPRC's audit coverage, and justification for the proposed construction of addi- tional NPRC office space. We found that the contractor's fee was not established in accordance with DOE's regulations. We also found that independent audit coverage at NPRC in the last several years has been too limited to assure that major aspects of operations are adequately evaluated. In addition, we noted that NPRC's plans for acquisi- tion of new office space did not fully take into consideration leasing as an alternative. OBJECTIVES, SCOPEr AND METHODOLOGY In examining the process followed in establishing the contractor's fee, we reviewed records of the fiscal year 1984 negotiations and compared this with DOE's fee-setting criteria. Also, we interviewed the prime contractor and DOE officials responsible for establishing, and later awarding, the fee and monitoring the contract. (005581) UNITED STATES GENERAL ACCOUNTING OFFICE RESOURCES AND ECONOMI DIV IL 12,1985 126905

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