Statement of Gregory H. Friedman Inspector General Department of Energy Subject: Performance and management challenges confronting the Department of Energy
Inspection of Selected Coordination Activities by the Department of Energy’s Office of Transportation Safeguards
The Department of Energy’s Office of Transportation Safeguards (OTS) maintains a liaison
program to communicate with State, Tribal, and local officials in the event of an accident or
terrorist attack involving an OTS shipment of nuclear weapons, nuclear weapons components, or
special nuclear materials (nuclear shipment). The purpose of the liaison program is to, among
other things, ensure that officials know what actions to take in response to a request for
assistance from OTS.
program to communicate with State, Tribal, and local officials in the event of an accident or
terrorist attack involving an OTS shipment of nuclear weapons, nuclear weapons components, or
special nuclear materials (nuclear shipment). The purpose of the liaison program is to, among
other things, ensure that officials know what actions to take in response to a request for
assistance from OTS.
Utilization of the Big Explosives Experimental Facility
The National Nuclear Security Administration is responsible for managing the
high-explosive firing facilities used by the Stockpile Stewardship Program. In 1995, Lawrence Livermore
National Laboratory justified the need for a firing facility at the Nevada Test Site (NTS). The Big
Explosives Experimental Facility (BEEF), under the direction of the Nevada Operations Office (Nevada),
was designed and operated to perform large-load, high-explosive experiments that could not be done at
other Department of Energy (DOE) firing facilities. The objective of this audit was to determine if the
BEEF needed to operate on a full-time basis.
high-explosive firing facilities used by the Stockpile Stewardship Program. In 1995, Lawrence Livermore
National Laboratory justified the need for a firing facility at the Nevada Test Site (NTS). The Big
Explosives Experimental Facility (BEEF), under the direction of the Nevada Operations Office (Nevada),
was designed and operated to perform large-load, high-explosive experiments that could not be done at
other Department of Energy (DOE) firing facilities. The objective of this audit was to determine if the
BEEF needed to operate on a full-time basis.
Inspection of Concerns Relating to the Management of the Savannah River Operations Office LEARN/POWER Information System
The Office of Inspector General (OIG), U.S. Department of Energy (DOE), received information
that the Savannah River Operations Office (Savannah River) continued to develop, implement,
and market a human resource information system, despite the establishment of a Departmental
information system entitled the “Corporate Human Resource Information System” (CHRIS).
We recently sent you our audit report of the Department’s “Corporate and Stand Alone
Information Systems Development” (DOE/IG-0485). In that audit, we concluded that the
Department has spent at least $38 million developing duplicative information systems. Also,
despite efforts to implement several corporate-level applications, duplicative and/or redundant
computer systems exist or were under development at virtually all organizational levels within
the Department. Further, many organizations continued to invest in custom or site-specific
development efforts that duplicated corporate systems. This was despite Departmental guidance
to the contrary. This inspection report compliments our audit by addressing one significant sitespecific
development effort and by providing additional details concerning challenges facing the
Department’s implementation of corporate-level applications./pjp
that the Savannah River Operations Office (Savannah River) continued to develop, implement,
and market a human resource information system, despite the establishment of a Departmental
information system entitled the “Corporate Human Resource Information System” (CHRIS).
We recently sent you our audit report of the Department’s “Corporate and Stand Alone
Information Systems Development” (DOE/IG-0485). In that audit, we concluded that the
Department has spent at least $38 million developing duplicative information systems. Also,
despite efforts to implement several corporate-level applications, duplicative and/or redundant
computer systems exist or were under development at virtually all organizational levels within
the Department. Further, many organizations continued to invest in custom or site-specific
development efforts that duplicated corporate systems. This was despite Departmental guidance
to the contrary. This inspection report compliments our audit by addressing one significant sitespecific
development effort and by providing additional details concerning challenges facing the
Department’s implementation of corporate-level applications./pjp
Prediction and Mapping Capabilities for Atmospheric Releases of Hazardous Materials
Sale of Enriched Uranium at the Fernald Environmental Management Project
In October 1997, the prime contractor at the Fernald Environmental Management Project (Fernald), Fluor
Fernald, Inc. (Fluor), accepted competitive bids for the sale of 978 metric tons of enriched uranium located
at Fernald. For this sale, Fluor was required to repackage, weigh, sample, and deliver the material to the
winning bidder on the Department of Energy's (Department) behalf. The Department authorized Fluor to
offset costs that were directly related to the sale and return the net proceeds to the U.S. Treasury (Treasury).
Fluor estimated that the sale would realize net proceeds of $5 million to $7 million for return to the
Treasury. This was based on projected sales revenue of $10.5 million.
The objective of this audit was to determine whether the Department returned proceeds from the sale of
enriched uranium to the Treasury.0542
Fernald, Inc. (Fluor), accepted competitive bids for the sale of 978 metric tons of enriched uranium located
at Fernald. For this sale, Fluor was required to repackage, weigh, sample, and deliver the material to the
winning bidder on the Department of Energy's (Department) behalf. The Department authorized Fluor to
offset costs that were directly related to the sale and return the net proceeds to the U.S. Treasury (Treasury).
Fluor estimated that the sale would realize net proceeds of $5 million to $7 million for return to the
Treasury. This was based on projected sales revenue of $10.5 million.
The objective of this audit was to determine whether the Department returned proceeds from the sale of
enriched uranium to the Treasury.0542