Facility Representative Certification at the Chicago Operations Office
Management Challenges at the Department of Energy
Annually, the Office of Inspector General identifies what it considers to be the most significant
management challenges facing the Department of Energy. Now required by the Reports
Consolidation Act of'2000, this effort also takes into account emerging issues facing the
Department. Our conclusions are based on an examination of the results of current Office of
Inspector General audits, inspections, and investigations as well as an assessment of the
Department's progress in addressing previously identified challenges.
Through this process, the Office of Inspector General highlights activities that demonstrate
systematic or recurring performancc problems and those which are inherently difficult to
manage. Consistent with our mission, the overall goal is to focus attention on significant issues
with the objective of enhancing the effectiveness of the Department's many programs and
operations.
management challenges facing the Department of Energy. Now required by the Reports
Consolidation Act of'2000, this effort also takes into account emerging issues facing the
Department. Our conclusions are based on an examination of the results of current Office of
Inspector General audits, inspections, and investigations as well as an assessment of the
Department's progress in addressing previously identified challenges.
Through this process, the Office of Inspector General highlights activities that demonstrate
systematic or recurring performancc problems and those which are inherently difficult to
manage. Consistent with our mission, the overall goal is to focus attention on significant issues
with the objective of enhancing the effectiveness of the Department's many programs and
operations.
The Department of Energy's Implementation of Revised OMB Circular No. A-123
Management Controls over Implementation of the Homeland Defense Equipment Reuse Program
In June 2002, the Department of Energy's (Department) Oak Ridge Office entered into an
Interagency Agreement with the U.S. Department of Justice to provide excess
radiological detection equipment and other equipment to designated state and local first
responder agencies under the Homeland Defense Equipment Reuse (HDER) Program.
On March 1, 2003, the Department of Justice transferred its responsibility for
administering the HDER Program to the Department of Homeland Security.
Under the Agreement, Oak Ridge located, received, evaluated, and rehabilitated excess
Federal equipment for reuse by first responder agencies. Essential first responder
equipment included items such as radiation detection meters and face respirators.
Interagency Agreement with the U.S. Department of Justice to provide excess
radiological detection equipment and other equipment to designated state and local first
responder agencies under the Homeland Defense Equipment Reuse (HDER) Program.
On March 1, 2003, the Department of Justice transferred its responsibility for
administering the HDER Program to the Department of Homeland Security.
Under the Agreement, Oak Ridge located, received, evaluated, and rehabilitated excess
Federal equipment for reuse by first responder agencies. Essential first responder
equipment included items such as radiation detection meters and face respirators.
Department's Implementation of the Strategic Integrated Procurement Enterprise System - Overall Project Planning
Contract Transition Activities at the Nevada Test Site
The Nevada Test Site (Test Site) is a unique combination of Federally-owned land
and facilities located in a remote area approximately 65 miles northwest of Las
Vegas, Nevada. The Test Site represents the United States' unique capability to
support nuclear testing and complex dynamic experiments that involve nuclear and
hazardous materials. Bechtel Nevada was the management and operating contractor
of the Test Site from 1996 through June 30, 2006.
In February 2005, the National Nuclear Security Administration (NNSA)
competitively bid the contract to manage the Test Site and in March 2006 awarded
the contract to the National Security Technologies, LLC (NSTec). NSTec is a limited
liability company formed as a partnership between Northrop Grumman, AECOM,
CH2M Hill, and Nuclear Fuel Services. The five-year contract is valued at
approximately $500 million annually, with the potential for five additional years
based on adequate performance.
NNSA allowed three months for the transition between contractors to be completed.
The objective of the audit was to determine whether contract transition activities were
effective in protecting the government's interest and whether costs incurred were
allowable, allocable, and reasonable.
and facilities located in a remote area approximately 65 miles northwest of Las
Vegas, Nevada. The Test Site represents the United States' unique capability to
support nuclear testing and complex dynamic experiments that involve nuclear and
hazardous materials. Bechtel Nevada was the management and operating contractor
of the Test Site from 1996 through June 30, 2006.
In February 2005, the National Nuclear Security Administration (NNSA)
competitively bid the contract to manage the Test Site and in March 2006 awarded
the contract to the National Security Technologies, LLC (NSTec). NSTec is a limited
liability company formed as a partnership between Northrop Grumman, AECOM,
CH2M Hill, and Nuclear Fuel Services. The five-year contract is valued at
approximately $500 million annually, with the potential for five additional years
based on adequate performance.
NNSA allowed three months for the transition between contractors to be completed.
The objective of the audit was to determine whether contract transition activities were
effective in protecting the government's interest and whether costs incurred were
allowable, allocable, and reasonable.
Report on the Department of Energy's Fiscl year 2007 Consolidated Financial Statements