Calendar Year 2020

During 2008, the Department of Energy expended about $300 million to provide energy to over 9,000 Federal buildings at its facilities. A significant portion of those costs, up to 40 percent, were expended for heating, ventilation and air conditioning (HVAC).
Because of its size and scope, operating the Department's existing HVAC systems as efficiently as possible offers the promise of immediate and substantial energy and cost savings. In addition to the "common sense" reasons for efficient and economic energy use, Federal agencies are specifically required to conserve energy by reducing heat or eliminating air conditioning during non-working hours. One of the primary means of achieving these savings is through the use of "setback" controls, both mechanical and software, that decrease the temperature difference between the inside of the building and the outside of the building during non-working hours.
The Department is the Federal agency designated to lead the country to energy efficiency and it has both an opportunity and responsibility to provide direction for smart, efficient energy management. However, as we noted in our recent report on Department of Energy Efforts to Manage Information Technology Resources in an Energy-Efficient and Environmentally Responsible Manner (OAS-RA-09-03, May 27, 2009), both Federal and contractor officials had not always taken all necessary steps to advance the Department's energy leadership role.
Recently, the American Recovery and Reinvestment Act of 2009 (Recovery Act)
reemphasized the importance of reducing the country's dependence on foreign oil and, more generally, on fossil fuels, and of conserving the Nation's scarce energy resources.
Because of the importance of these objectives, we initiated this audit to determine
whether the Department was taking maximum advantage of setbacks as an energy
savings/management technique.
The Cooperative Audit Strategy, was developed by the Office of Inspector General, in consultation with the Office of Chief FInancial Officer, the Office of Procurement and Assistance Management, and the Contractor Internal Audit Council. The Strategy was developed after a 1992 OIG report identified that the quality of the Management and Operating (M&O) contractor's internal audit functions work was inconsistent and unsatisfactory and could not be relied upon for internal control purposes.
A significant amount of Federal funds expended at the Savannah River Site are
attributable to subcontracts for goods and services. In Fiscal Year (FY) 2008,
$312 million of $1.3 billion in total obligations were made for subcontracts. The
Savannah River Site is managed and operated by Savannah River Nuclear Solutions,
LLC (SRNS) through a prime contract with the Department of Energy's (Department)
Savannah River Operations Office. Prior to August 2008, the site was managed and
operated by Washington Savannah River Co., LLC (WSRC).
A significant portion of Federal h d s expended at the Oak Ridge National Laboratory
(ORNL) and the East Tennessee Technology Park (ETTP) are attributable to subcontracts
for goods and services. In Fiscal Year (FY) 2008, $744 million of ORNL's $1.3 billion in
total obligations, and $131 million of ETTP's $361 million in total obligations, were
made for subcontracts. ORNL is managed by UT-Battelle, LLC (UT-Battelle) and ETTP
is managed by Bechtel Jacobs Company LLC (Bechtel Jacobs) through prime contracts
with the Department of Energy's (Department) Oak Ridge Office.
The Department of Energy's Los Alamos National Laboratory (Los Alamos) maintains some of the Nation's most important national security assets, including nuclear materials. Many of Los Alamos' facilities are located in close proximity to one another, are occupied by large numbers of contract and Federal employees, and support activities ranging from nuclear weapons design to science-related activities. Safeguarding against fires, regardless of origin, is essential to protecting employees, surrounding communities, and national security assets.