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Inspection Report: IG-0719

February 2, 2006

Protective Force Contracts at the Oak Ridge Reservation

The Department of Energy (DOE) mission at the Oak Ridge AND OBJECTIVE Reservation requires a paramilitary protective force comprised of several hundred security police officers to safeguard the production and storage of nuclear weapons components, special nuclear material, and other sensitive work. Wackenhut Services, Inc. (Wackenhut) initially provided protective force services for the Oak Ridge Reservation under one contract. However, protective services for the Y-12 National Security Complex were segregated into a separate contract following the establishment of the National Nuclear Security Administration (NNSA). As a result, Wackenhut now provides protective services for the Oak Ridge Reservation under two essentially identical contracts. One contract, with the DOE Oak Ridge Office, covers the Oak Ridge National Laboratory, East Tennessee Technology Park, and the DOE Federal building complex in Oak Ridge. The other contract, with the NNSA Y-12 Site Office in Oak Ridge, covers the Y-12 National Security Complex. The protective force contracts were structured to combine elements of a time-and-materials type contract with elements of an incentive type contract, characterized as a time-and-materials-award fee contract.