Work for Others Performed by the Department of Energy for the Department of Defense
Pursuant to the Atomic Energy Act of 1954, as amended, and the Economy Act of 1932, the Department of Energy and its semi-autonomous National Nuclear Security Administration (NNSA) provide research and technical assistance to other Federal agencies on a reimbursable, full cost recovery basis through the Work for Others (WFO) program. For the vast majority of WFO technical projects, Department Federal officials furnish administrative project oversight while the actual detailed scientific or technical work is completed by the Department's "management and operating" contractors. These contractors are awarded a special contract type specifically created under the Federal Acquisition Regulation to manage and operate Department sites and facilities, including sophisticated laboratories and technical centers, on a government-owned, contractor-operated basis.
With annual expenditures exceeding $1 billion, the Department of Defense (DoD) is one of the Department's largest WFO customers. Work performed for DoD at the Department's national laboratories and other facilities includes highly technical research in areas such as nuclear weapons systems, counter-terrorism, and in-theater troop support. The National Defense Authorization Act for Fiscal Year (FY) 2009, required the Inspectors General of the DoD and the Department to review procurement methods to determine whether the Department complied with DoD procurement requirements and/or whether alternative procurement policies were in place. In response, we focused our review on projects performed by NNSA because it completes the vast majority (approximately $900 million in FY 2008) of the Department's work for DoD. As part of this effort, and, at the specific request of the DoD Office of Inspector General (DoD OIG), we identified the universe of WFO technical projects that received new funding in the fourth quarter of FY 2008 at NNSA sites. We independently reviewed a judgmental sample of 11 projects selected by the DoD OIG to meet the objectives of this audit.
With annual expenditures exceeding $1 billion, the Department of Defense (DoD) is one of the Department's largest WFO customers. Work performed for DoD at the Department's national laboratories and other facilities includes highly technical research in areas such as nuclear weapons systems, counter-terrorism, and in-theater troop support. The National Defense Authorization Act for Fiscal Year (FY) 2009, required the Inspectors General of the DoD and the Department to review procurement methods to determine whether the Department complied with DoD procurement requirements and/or whether alternative procurement policies were in place. In response, we focused our review on projects performed by NNSA because it completes the vast majority (approximately $900 million in FY 2008) of the Department's work for DoD. As part of this effort, and, at the specific request of the DoD Office of Inspector General (DoD OIG), we identified the universe of WFO technical projects that received new funding in the fourth quarter of FY 2008 at NNSA sites. We independently reviewed a judgmental sample of 11 projects selected by the DoD OIG to meet the objectives of this audit.
Follow-up Audit of Test Readiness at the Nevada Test Site
As part of a self-imposed moratorium on testing, the United States has not conducted an
explosive nuclear test since 1992. Since that time, the Department of Energy's (Department)
National Nuclear Security Administration (NNSA) has used the Stockpile Stewardship
Program, an effort that includes analytical simulation, laboratory experiments, and weapons
refurbishments, to maintain the stockpile without nuclear testing. Under current national
policy, however, the Department may be called upon, within a three-year timeframe, to
resume underground nuclear testing at the Nevada Test Site (Nevada) under certain
circumstances. These situations include the identification of a new type of weapon problem
or an accumulation of uncertainties about the reliability of the nuclear stockpile. Prior to
performing any test, the Department is required by Title 10 of the Code of Federal
Regulations (CFR) Part 830, Nuclear Safety Management, to complete various safety
analyses. In addition, Department Orders 452.1C, Nuclear Explosive and Weapon Surety
Program, and 452.2C, Nuclear Explosive Safety, require a nuclear explosive safety study,
which is a formal evaluation of the controls to meet nuclear explosive safety standards.
explosive nuclear test since 1992. Since that time, the Department of Energy's (Department)
National Nuclear Security Administration (NNSA) has used the Stockpile Stewardship
Program, an effort that includes analytical simulation, laboratory experiments, and weapons
refurbishments, to maintain the stockpile without nuclear testing. Under current national
policy, however, the Department may be called upon, within a three-year timeframe, to
resume underground nuclear testing at the Nevada Test Site (Nevada) under certain
circumstances. These situations include the identification of a new type of weapon problem
or an accumulation of uncertainties about the reliability of the nuclear stockpile. Prior to
performing any test, the Department is required by Title 10 of the Code of Federal
Regulations (CFR) Part 830, Nuclear Safety Management, to complete various safety
analyses. In addition, Department Orders 452.1C, Nuclear Explosive and Weapon Surety
Program, and 452.2C, Nuclear Explosive Safety, require a nuclear explosive safety study,
which is a formal evaluation of the controls to meet nuclear explosive safety standards.
The Department of Energy's Quality Assurance Process for Prime Recipients' Reporting for the American Recovery and Reinvestment Act of 2009
The American Recovery and Reinvestment Act of 2009 (Recovery Act) was established to jumpstart the U.S. economy, create or save millions of jobs, spur technological advances in health and science, and invest in the Nation's energy future. The Department of Energy (Department) will receive an unprecedented $37 billion in Recovery Act funding to support a variety of science, energy, and environmental initiatives. The majority of the funding received by the Department will be allocated to various recipients through grants, cooperative agreements, contracts, and other financial instruments.
The Department's Unclassified Cyber Security Program - 2009
Industry experts report that security challenges and threats are continually evolving as malicious activity has become more web-based and attackers are able to rapidly adapt
their attack methods. In addition, the number of data breaches continues to rise. In an
effort to mitigate and address threats and protect valuable information, the Department of
Energy anticipated spending about $275 million in Fiscal Year (FY) 2009 to implement
cyber security measures necessary to protect its information technology resources. These
systems and data are designed to support the Department's mission and business lines of
energy security, nuclear security, scientific discovery and innovation, and environmental
responsibility.
The Federal Information Security Management Act of 2002 (FISMA) provides direction
to agencies on the management and oversight of information security risks, including
design and implementation of controls to protect Federal information and systems. As
required by FISMA, the Office of Inspector General conducts an annual independent
evaluation to determine whether the Department's unclassified cyber security program
adequately protects its information systems and data. This memorandum and the
attached report present the results of our evaluation for FY 2009.
their attack methods. In addition, the number of data breaches continues to rise. In an
effort to mitigate and address threats and protect valuable information, the Department of
Energy anticipated spending about $275 million in Fiscal Year (FY) 2009 to implement
cyber security measures necessary to protect its information technology resources. These
systems and data are designed to support the Department's mission and business lines of
energy security, nuclear security, scientific discovery and innovation, and environmental
responsibility.
The Federal Information Security Management Act of 2002 (FISMA) provides direction
to agencies on the management and oversight of information security risks, including
design and implementation of controls to protect Federal information and systems. As
required by FISMA, the Office of Inspector General conducts an annual independent
evaluation to determine whether the Department's unclassified cyber security program
adequately protects its information systems and data. This memorandum and the
attached report present the results of our evaluation for FY 2009.
The Department's Management of the ENERGY STAR Program
The American Recovery and Reinvestment Act (Recovery Act) authorized about $300 million in
consumer rebate incentives for purchases of products rated under the "ENERGY STAR"
Program. ENERGY STAR, a voluntary labeling program established in 1992, provides
consumers with energy efficiency data for a range of products so that they can make informed
purchase judgments. The overall goal of the program is to encourage consumers to choose
energy efficient products, advancing the nationwide goal of reducing energy consumption.
The U.S. Environmental Protection Agency (EPA) managed the ENERGY STAR Program on a
stand-alone basis until 1996 when it joined forces with the Department of Energy (Department).
A Memorandum of Cooperation expanded the ENERGY STAR product categories, giving the
Department responsibility for overseeing eight product categories such as windows, dishwashers,
clothes washers, and refrigerators, while EPA retained responsibility for electronic product
categories and heating, ventilating, and cooling equipment. Each agency is responsible for
setting product efficiency specifications for those items under its control and for ensuring the
proper use of the ENERGY STAR label in the marketplace.
consumer rebate incentives for purchases of products rated under the "ENERGY STAR"
Program. ENERGY STAR, a voluntary labeling program established in 1992, provides
consumers with energy efficiency data for a range of products so that they can make informed
purchase judgments. The overall goal of the program is to encourage consumers to choose
energy efficient products, advancing the nationwide goal of reducing energy consumption.
The U.S. Environmental Protection Agency (EPA) managed the ENERGY STAR Program on a
stand-alone basis until 1996 when it joined forces with the Department of Energy (Department).
A Memorandum of Cooperation expanded the ENERGY STAR product categories, giving the
Department responsibility for overseeing eight product categories such as windows, dishwashers,
clothes washers, and refrigerators, while EPA retained responsibility for electronic product
categories and heating, ventilating, and cooling equipment. Each agency is responsible for
setting product efficiency specifications for those items under its control and for ensuring the
proper use of the ENERGY STAR label in the marketplace.