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111719 1 (1980-02-29)

handle is hein.gao/gaobadylc0001 and id is 1 raw text is:                                                           Is





             United States General Accounting Office
                     Washington, D.C. 20548

                                   FOR RELEASE ON DELIVERY
                                   Expected at 10:00 a.m.
                                   Friday, February 29, 1980
111719
                           STATEMENT OF
                         J. DEXTER PEACH
              DIRECTOR, ENERGY AND MINERALS DIVISION,,,',.
                            BEFORE THE
                 SUBCOMMITTEE ON ENERGY AND POWER
                              OF THE
        HOUSE COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE
                                ON
          / DEPARTMENT OF ENERGY PROCUREMENT PRACTICES !

   Mr. Chairman and Members of the Subcommittee:

        GAO welcomes the opportunity to be here today to discuss

   the results of our examination of the Department of Energy's

   (DOE's) procurement practices. This work was undertaken at

   your request, and on November 2, 1979, we issued our report to

   you entitled The Department of Energy's Practices for Award-

   ing and Administering Contracts Need to be Improved. We are

   furnishing a copy of the report for the record. On January 14,

   1980, the Department, at you request, formally replied to you

   on our report. We are also furnishing for the record our eval-

   uation of that response.

        My statement today briefly summarizes the findings in our

   report.

   DOE RELIES HEAVILY ON
   CONTRACTORS

        DOE relies heavily on contractors to help carry out its

   mission. With reported obligations of $8.5 billion for about

   5,000 contracts in fiscal year 1978, the Department is the

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