OIG review the extent to which "profiling" of federal and contractor employees has occurred in the Department of Energy security porcess.
Department of Energy's Super Energy Savings Performance Contracts
As you recently noted in both testimony before the Congress and in public statements, the United States is
facing the most serious energy supply situation since the 1970s. And, current forecasts suggest that the
demand for energy is increasing. As one of the largest energy consumers in the United States, the Federal
Government has established several programs to reduce demand, specifically, by moderating energy
consumption in Federal buildings. Private financing of energy improvements through what are referred to
as Super Energy Savings Performance Contracts (super ESPCs) is one such mechanism. Under super
ESPCs, energy service contractors use private financing to make energy-savings improvements in Federal
facilities. As compensation for their investment, they receive a share of the cost savings. Thus, super
ESPCs represent a way to achieve Federal sector energy savings at no capital cost to the Government.
facing the most serious energy supply situation since the 1970s. And, current forecasts suggest that the
demand for energy is increasing. As one of the largest energy consumers in the United States, the Federal
Government has established several programs to reduce demand, specifically, by moderating energy
consumption in Federal buildings. Private financing of energy improvements through what are referred to
as Super Energy Savings Performance Contracts (super ESPCs) is one such mechanism. Under super
ESPCs, energy service contractors use private financing to make energy-savings improvements in Federal
facilities. As compensation for their investment, they receive a share of the cost savings. Thus, super
ESPCs represent a way to achieve Federal sector energy savings at no capital cost to the Government.
Facility Maintenance at the Idaho National Engineering and Environmental Laboratory
The average age of facilities at the Idaho National Engineering and Environmental Laboratory is 27 years
and some of the facilities are more than 50 years old. Even though the facilities are aging, the Department
of Energy's (DOE) Idaho Operations Office (Idaho) goal is to maintain its facilities in a safe and reliable
state and to maximize their useful life. To achieve its goal, Idaho spent an estimated $72 million on a
combination of preventive and corrective maintenance in Fiscal Year 1999. The objective of our audit was
to determine whether Idaho maintained facilities in a safe and economical manner. Plan"}
and some of the facilities are more than 50 years old. Even though the facilities are aging, the Department
of Energy's (DOE) Idaho Operations Office (Idaho) goal is to maintain its facilities in a safe and reliable
state and to maximize their useful life. To achieve its goal, Idaho spent an estimated $72 million on a
combination of preventive and corrective maintenance in Fiscal Year 1999. The objective of our audit was
to determine whether Idaho maintained facilities in a safe and economical manner. Plan"}
Bechtel Jacobs Company LLC's Management and Integration Contract at Oak Ridge
In December 1997, the Oak Ridge Operations Office entered into a $2.5 billion management and
integration contract with Bechtel Jacobs Company LLC (Bechtel Jacobs) for environmental remediation
activities at Department of Energy (Department) sites in Oak Ridge, Tennessee; Portsmouth, Ohio; and
Puducah, Kentucky. A primary objective was to accelerate cleanup activities and maximize cost
effectiveness. To this end, the Department chose a strategy in which the contractor was to rely on
competitively-awarded, fixed-price subcontracts for much of the work. The Department, based on its
experience, anticipated that the use of competitive, fixed-price subcontracts would result in improved
performance and cost savings. In response to the request for proposals, Bechtel Jacobs stated that it would
subcontract just over 90 percent of the work to be performed and reduce staffing by about 80 percent,
through transitioning staff to subcontracts. This was to be achieved within two years of the contract award.
These factors were, in large part, the basis of the award to Bechtel Jacobs.
The objective of this audit was to determine whether Bechtel Jacobs met these commitments.
integration contract with Bechtel Jacobs Company LLC (Bechtel Jacobs) for environmental remediation
activities at Department of Energy (Department) sites in Oak Ridge, Tennessee; Portsmouth, Ohio; and
Puducah, Kentucky. A primary objective was to accelerate cleanup activities and maximize cost
effectiveness. To this end, the Department chose a strategy in which the contractor was to rely on
competitively-awarded, fixed-price subcontracts for much of the work. The Department, based on its
experience, anticipated that the use of competitive, fixed-price subcontracts would result in improved
performance and cost savings. In response to the request for proposals, Bechtel Jacobs stated that it would
subcontract just over 90 percent of the work to be performed and reduce staffing by about 80 percent,
through transitioning staff to subcontracts. This was to be achieved within two years of the contract award.
These factors were, in large part, the basis of the award to Bechtel Jacobs.
The objective of this audit was to determine whether Bechtel Jacobs met these commitments.
Inspection of the Department of Energy’s Role in the Commerce Control List and the U.S. Munitions List
Section 1402(b) of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2000 requires the President to submit to Congress an annual report by the Inspectors General of the Departments of Commerce, Defense, Energy, and State of the policies and procedures of the U.S. Government with
respect to the export of technologies and technical information with potential military applications to countries and entities of concern. Section 1075 of the NDAA for FY 2001 requires the Inspectors General to include in their annual report the status or disposition of recommendations that have been set
forth in previous annual reports under Section 1402(b).
respect to the export of technologies and technical information with potential military applications to countries and entities of concern. Section 1075 of the NDAA for FY 2001 requires the Inspectors General to include in their annual report the status or disposition of recommendations that have been set
forth in previous annual reports under Section 1402(b).
Request to testify on the major performance and management challenges confronting the Department of Energy (Department). Recently, the Office of Inspector General (OIG) issued a special report on Management
Challenges at the Department of Energy (DOE/IG-0491, November 2000). In that report, we categorized the most serious challenges facing the Department as follows: · Startup of the National Nuclear Security Administration (NNSA)· Information Technology · Contract Administration · Infrastructure · Energy Supply/Demand Technology· Property Controls and Asset Inventories · Environmental Remediation · Safety and Health.
· Human Capital · Security
Challenges at the Department of Energy (DOE/IG-0491, November 2000). In that report, we categorized the most serious challenges facing the Department as follows: · Startup of the National Nuclear Security Administration (NNSA)· Information Technology · Contract Administration · Infrastructure · Energy Supply/Demand Technology· Property Controls and Asset Inventories · Environmental Remediation · Safety and Health.
· Human Capital · Security