Calendar Year 2020

Since the 1 9501s, the Department of Energy and its predecessor agencies have provided
nuclear materials, including various forms of uranium and plutonium, to academic
institutions, conlmercial facilities and other government agencies. The Atomic Energy
Act of 1954 provided authority for these materials to be loaned or leased for research,
educational or medical purposes, or for other projects consistent with the Department's
mission. As of the end of September 2007, 101 domestic facilities had Departmentowned
nuclear materials in their possession.

The Energy Policy Act of 2005 (Energy Policy Act)
authorized the Department of Energy (Department) to
guarantee loans for new or significantly improved energy
production technologies that avoid, reduce, or sequester air
pollutants and other greenhouse gases. In August 2006, the
Department issued its first solicitation for loan guarantees,
and invited 16 respondents to the solicitation to submit full
applications for loan guarantees in October 2007. The
Department also announced three solicitations for nuclear
power facilities, front end nuclear facilities for the
production of nuclear fuel, and energy efficiency,
renewable energy, and advance electricity transmission and
distribution technologies in June 2008. The Department
issued a solicitation for advanced fossil energy projects in
September 2008. Collectively, the Department's
solicitations make $42.5 billion available in loan guarantees
to support innovative energy projects.

The Department of Energy reimburses its management and operating contractors for severance benefits paid to employees as part of involuntary workforce reductions. Severance benefits are paid to employees, to mitigate the impact of involuntary separations that result from changing missions and budget constraints. The Department reimburses the cost of benefits provided under contractor severance benefits plans. The Department's Office of Managements Office of Procurement and Assistance Management is responsible for development and implementation of policies for reimbursing contractor compensation plans, including severance benefits.

This letter report provides the results of an Office of Inspector General inspection of
questionable purchases at the Department of Energy's Hanford Site (Hanford). During a
review of the procurement card program at the Fluor Hanford Company (Fluor), we learned
that Fluor and another Hanford prime contractor, CH2M Hill Hanford Company (CH2M
Hill), had used Government funds to purchase overtime meals for employees. In addition,
we learned Fluor had used Government funds to purchase gift items that were given away to
the public. The objective of this inspection was to determine if the purchase of overtime
meals and gifts using Government funds was in compliance with applicable Federal
regulations and policies.

The National Nuclear Security Administrations (NNSA's) Pantex Plant is responsible for the assembly and dismantlement of nuclear weapon systems.