Results of Audit Procedures Performed at Chicago Operations Office During the Audit of the Department’s Consolidated Fiscal Year 1998 Financial Statements
The U.S. Department of Energy's Large-Scale Demonstration and Deployment Projects
The Department of Energy has about 7,000 surplus buildings that will eventually require deactivation and
decommissioning (D&D). The estimated cost of D&D for the Department's surplus facilities is over $11
billion with an additional $20 billion to stabilize, deactivate and decommission facilities which are currently
active. The Office of Environmental Management is responsible for assuring that adequate technologies
are available to address these D&D needs. Through the development and widespread deployment of new
technologies, the Department has established a goal of reducing D&D costs by approximately $1 billion by
2006.
Environmental Management uses Large-Scale Demonstration and Deployment Projects to identify and
promote deployment of improved technologies throughout the Department. These projects are intended to
provide an opportunity to compare the cost and performance of new or improved technologies against
established technologies. To date, the projects have demonstrated many technologies which offer cost and
performance improvements over established technologies. Environmental Management uses a concept of
Integrating Contractor Teams to manage each project. The objective of our audit was to determine if
opportunities exist to increase D&D technology deployments within the Department and to reduce the cost
of managing technology demonstration projects.nd
A
decommissioning (D&D). The estimated cost of D&D for the Department's surplus facilities is over $11
billion with an additional $20 billion to stabilize, deactivate and decommission facilities which are currently
active. The Office of Environmental Management is responsible for assuring that adequate technologies
are available to address these D&D needs. Through the development and widespread deployment of new
technologies, the Department has established a goal of reducing D&D costs by approximately $1 billion by
2006.
Environmental Management uses Large-Scale Demonstration and Deployment Projects to identify and
promote deployment of improved technologies throughout the Department. These projects are intended to
provide an opportunity to compare the cost and performance of new or improved technologies against
established technologies. To date, the projects have demonstrated many technologies which offer cost and
performance improvements over established technologies. Environmental Management uses a concept of
Integrating Contractor Teams to manage each project. The objective of our audit was to determine if
opportunities exist to increase D&D technology deployments within the Department and to reduce the cost
of managing technology demonstration projects.nd
A
Matters Identified at the Oakland Operations Office During the Audit of the Department of Energy's Consolidated Fiscal Year 1998 Financial Statements
The Government Management Reform Act of 1994 requires that the Department of Energy (DOE) annually submit audited financial statements to the Office of Management and Budget (OMB). A DOE-wide audit was conducted to determine whether there was reasonable assurance that DOE's consolidated Fiscal Year (FY) 1998 financial statements were free of material misstatements. We conducted a portion of the DOE-wide audit at the Oakland Operations Office (Oakland) and its management and operating contractors.
Report on Matters Identified at the Oakland Operations Office during the Audit of The Department of Energy's Consolidated Fiscal year 1998 Financial Statements
Health Physics Technician Subcontracts at Brookhaven National Laboratory
To supplement its health physics staff, Brookhaven National Laboratory (Brookhaven) subcontracted
with a support service business (the subcontractor) to obtain the services of health physics technicians.
During the performance of these subcontracts, certain issues arose concerning per diem payments to the
subcontractor for local technicians. The objective of this audit was to determine whether Brookhaven
fully enforced the terms and conditions of its subcontracts for health physics technicians.
with a support service business (the subcontractor) to obtain the services of health physics technicians.
During the performance of these subcontracts, certain issues arose concerning per diem payments to the
subcontractor for local technicians. The objective of this audit was to determine whether Brookhaven
fully enforced the terms and conditions of its subcontracts for health physics technicians.
Maintenance Activities at the Y-12 Plant
Department of Energy (Department) policy requires the use of performance measures to assess the
efficiency of maintenance operations. The Department recommends that performance measures be
developed to evaluate progress toward meeting plant maintenance goals, and that deviations in expected
results be analyzed to identify root causes and reported to management for corrective action. The
objective of this audit was to determine whether Lockheed Martin Energy Systems (Lockheed Martin)
used performance measures to identify and correct inefficiencies in its maintenance program.
efficiency of maintenance operations. The Department recommends that performance measures be
developed to evaluate progress toward meeting plant maintenance goals, and that deviations in expected
results be analyzed to identify root causes and reported to management for corrective action. The
objective of this audit was to determine whether Lockheed Martin Energy Systems (Lockheed Martin)
used performance measures to identify and correct inefficiencies in its maintenance program.