Follow-up Audit of Health Benefit Costs at the Department’s Management and Operating Contractors
In Calendar Year (CY) 1998, the Department of Energy (Department) spent about $480 million to provide health benefits for employees of its contractors. In 1994, the Office of Inspector General (OIG) evaluated the system in place at that time to determine if contractor employee health benefit costs were reasonable. In our June 1994 report, DOE/IG-0350, Audit of Health Benefit Costs at the
Department's Management and Operating Contractors, we reported that the Department paid more than its fair share of management and operating contractors’ employee health benefit costs. We
recommended that the Department (1) publish quantitative measurement techniques or standards for use in testing the reasonableness of contractor employees' health benefit costs, (2) require tests of the reasonableness of employees' health benefit costs to be performed periodically, and (3) provide guidance concerning specific health care provisions in Management and Operating (M&O) contracts. In response to the audit recommendations, the Department issued Order 350.1, Contractor Human Resource Management Programs, to require that contractors use one of two quantitative measurement techniques to periodically evaluate the reasonableness of employee benefit programs, and to require model contract language addressing employee benefit program features. Health benefit plans are a part of overall contractor employee benefit programs. In addition, the Department increased its staff of benefit experts, prepared a training manual, and held training on Order 350.1 at Departmental field sites.
Department's Management and Operating Contractors, we reported that the Department paid more than its fair share of management and operating contractors’ employee health benefit costs. We
recommended that the Department (1) publish quantitative measurement techniques or standards for use in testing the reasonableness of contractor employees' health benefit costs, (2) require tests of the reasonableness of employees' health benefit costs to be performed periodically, and (3) provide guidance concerning specific health care provisions in Management and Operating (M&O) contracts. In response to the audit recommendations, the Department issued Order 350.1, Contractor Human Resource Management Programs, to require that contractors use one of two quantitative measurement techniques to periodically evaluate the reasonableness of employee benefit programs, and to require model contract language addressing employee benefit program features. Health benefit plans are a part of overall contractor employee benefit programs. In addition, the Department increased its staff of benefit experts, prepared a training manual, and held training on Order 350.1 at Departmental field sites.
Land Conveyance and Transfer at Los Alamos National Laboratory
As part of Public Law 105-119 (Act), which was enacted in November 1997, the Department of Energy is to convey tracts of land at or in the vicinity of Los Alamos National Laboratory (Los Alamos) to the Incorporated County of Los Alamos (County) and the Department of Interior, in trust for the Pueblo of San
Ildefonso (Pueblo). According to the Act, the conveyed lands shall be used for historic, cultural, or environmental preservation purposes, economic diversification purposes, or community self-sufficiency purposes. The Department of Energy (Department) identified ten tracts of land or approximately 4,000 acres to be transferred. The objective of this audit was to determine whether the Department validated the cost estimates associated
with the conveyance and transfer of land at Los Alamos National Laboratory.
Ildefonso (Pueblo). According to the Act, the conveyed lands shall be used for historic, cultural, or environmental preservation purposes, economic diversification purposes, or community self-sufficiency purposes. The Department of Energy (Department) identified ten tracts of land or approximately 4,000 acres to be transferred. The objective of this audit was to determine whether the Department validated the cost estimates associated
with the conveyance and transfer of land at Los Alamos National Laboratory.
Facilities Information Management System
In July 1995, the Department of Energy implemented a $2 million corporate database
which was to contain up-to-date, reliable and comprehensive real property information.
The specific intent was to provide the Department’s decisionmakers at Headquarters and
in the field with the data needed to make informed judgments regarding the management
of the Department’s real property inventory. At the time of our audit, the database, the
Facilities Information Management System (FIMS), included over 100 million gross
square feet of building space, 2 million acres of land, $7 billion worth of other structures
and facilities, and $900 million of deferred maintenance items.
With its multi-billion dollar inventory of real property at sites throughout the nation,
maintaining complete and accurate information on these holdings is critical.
Accordingly, the objective of this audit was to determine if FIMS was a reliable source of
information.
which was to contain up-to-date, reliable and comprehensive real property information.
The specific intent was to provide the Department’s decisionmakers at Headquarters and
in the field with the data needed to make informed judgments regarding the management
of the Department’s real property inventory. At the time of our audit, the database, the
Facilities Information Management System (FIMS), included over 100 million gross
square feet of building space, 2 million acres of land, $7 billion worth of other structures
and facilities, and $900 million of deferred maintenance items.
With its multi-billion dollar inventory of real property at sites throughout the nation,
maintaining complete and accurate information on these holdings is critical.
Accordingly, the objective of this audit was to determine if FIMS was a reliable source of
information.
Semiannual Report to Congress October 1, 1999, to March 31, 2000
Inspector General Semiannual Report to Congress, October 1, 1999, to March 31, 2000
The U.S. Department of Energy's Global Climate Change Activities
The President's Climate Change Proposal of October 1997 and the United Nation's Framework Convention on Climate Change (FCCC), were intended to identify methods of reducing greenhouse gas emissions. The FCCC was ratified by the U.S. Senate in 1992 and put into force in July 1994. The purpose of the Kyoto Protocol (Protocol), a proposed amendment to the FCCC, is to reduce net emissions of certain greenhouse gases (primarily CO2) by setting binding limitations on the emissions of developed countries throughout the
world. The Protocol was negotiated by more than 160 nations in December 1997, in Kyoto, Japan, pursuant to the objectives of the FCCC. It mandates targets to limit or reduce greenhouse gas emissions for developed countries, including the U.S., but not for developing countries. The Protocol has not been
forwarded to the Senate for ratification. The objective of our audit was to determine whether funds were expended to implement the Kyoto Protocol, or to prepare for its implementation. The audit was initiated pursuant to a congressional request.
world. The Protocol was negotiated by more than 160 nations in December 1997, in Kyoto, Japan, pursuant to the objectives of the FCCC. It mandates targets to limit or reduce greenhouse gas emissions for developed countries, including the U.S., but not for developing countries. The Protocol has not been
forwarded to the Senate for ratification. The objective of our audit was to determine whether funds were expended to implement the Kyoto Protocol, or to prepare for its implementation. The audit was initiated pursuant to a congressional request.