The Department of Energy (Department) established a Cost-Reduction Incentive Program (CRIP) at
Westinghouse Savannah River Company (Westinghouse) in October 1992. The objective of the CRIP is
to provide an incentive for Westinghouse and its employees to examine processes and techniques and
make one-time improvements to reduce the cost of the contract and return "saved" funds to the direct
control of the Department. In 1997, the Department performed a comprehensive review of
Westinghouse's performance-based incentives and cost-reduction incentives, and concluded that most of
the savings identified through the CRIP occurred through greater management focus on reducing costs,
working smart, or the results of budget constraints, as opposed to innovative changes in work methods
and processes. The Assessment Team recommended that the Savannah River Operations Office
(Operations Office) reevaluate the effectiveness of the CRIP and consider either modifying the program
to provide for payment only for innovative ideas, or cancel the program and utilize performance-based
incentives to reward cost savings over some pre-established threshold. The objective of this audit was to
determine whether the Operations Office took appropriate action in response to the Department's internal
assessment of the CRIP.
Westinghouse Savannah River Company (Westinghouse) in October 1992. The objective of the CRIP is
to provide an incentive for Westinghouse and its employees to examine processes and techniques and
make one-time improvements to reduce the cost of the contract and return "saved" funds to the direct
control of the Department. In 1997, the Department performed a comprehensive review of
Westinghouse's performance-based incentives and cost-reduction incentives, and concluded that most of
the savings identified through the CRIP occurred through greater management focus on reducing costs,
working smart, or the results of budget constraints, as opposed to innovative changes in work methods
and processes. The Assessment Team recommended that the Savannah River Operations Office
(Operations Office) reevaluate the effectiveness of the CRIP and consider either modifying the program
to provide for payment only for innovative ideas, or cancel the program and utilize performance-based
incentives to reward cost savings over some pre-established threshold. The objective of this audit was to
determine whether the Operations Office took appropriate action in response to the Department's internal
assessment of the CRIP.
The Fiscal Year 1996 Performance Based Incentive Program at the Savannah River Operations Office
In June 1993, the then Secretary of Energy established a
Contract Reform Team to review the Department of Energy’s
(DOE) contracting practices and to make recommendations to
improve them. The need for contract reform was driven by a
recognition that DOE did not have adequate control of its
contractors, that contractors were not sufficiently accountable to
DOE, and that there was an absence of well-defined
performance measures and criteria for DOE contractors.
Contract Reform Team to review the Department of Energy’s
(DOE) contracting practices and to make recommendations to
improve them. The need for contract reform was driven by a
recognition that DOE did not have adequate control of its
contractors, that contractors were not sufficiently accountable to
DOE, and that there was an absence of well-defined
performance measures and criteria for DOE contractors.
Inspector General Semiannual Report to Congress, 1998
During this reporting period, the Office of Inspector General continued to advise Headquarters
and field managers of opportunities to improve the efficiency and effectiveness of the Department's
management controls, with particular emphasis on coverage of issues addressed in the Department's
Strategic Plan. We also have supported the Department's streamlining initiatives by
evaluating the cost effectiveness and overall efficiency of Department programs and operations,
placing special emphasis on key issue areas which have historically benefited from Office of Inspector
General attention. For example, in this and prior periods, we have concentrated on reviewing
performance-based contracts, performance outcomes, cost reduction incentive programs,
and performance information systems. We view these efforts as assisting the Department in implementing
the Government Performance and Results Act (the Results Act), which requires the
Department to establish strategic planning and performance measurement.efor
and field managers of opportunities to improve the efficiency and effectiveness of the Department's
management controls, with particular emphasis on coverage of issues addressed in the Department's
Strategic Plan. We also have supported the Department's streamlining initiatives by
evaluating the cost effectiveness and overall efficiency of Department programs and operations,
placing special emphasis on key issue areas which have historically benefited from Office of Inspector
General attention. For example, in this and prior periods, we have concentrated on reviewing
performance-based contracts, performance outcomes, cost reduction incentive programs,
and performance information systems. We view these efforts as assisting the Department in implementing
the Government Performance and Results Act (the Results Act), which requires the
Department to establish strategic planning and performance measurement.efor
The U.S. Department of Energy's Solar Enterprise Zone
To demonstrate the commercial viability of producing and marketing solar generated power, the Department
of Energy is supporting the construction of a solar facility in the State of Nevada. The purpose of the audit
was to determine if the Department had fully examined the costs and benefits of siting a solar facility at the
Nevada Test Site and at alternative sites in Nevada.309
of Energy is supporting the construction of a solar facility in the State of Nevada. The purpose of the audit
was to determine if the Department had fully examined the costs and benefits of siting a solar facility at the
Nevada Test Site and at alternative sites in Nevada.309
Personal Property at the Oak Ridge Operations Office and the Office of Scientific and Technical Information
The Oak Ridge Operations Office (Operations Office) and the Office of Scientific and Technical Information
(OSTI) are responsible for safeguarding and controlling personal property in their possession and in the
possession of their contractors. Categories of personal property include vehicles, heavy mobile equipment,
computers and software, office furniture and equipment, laboratory equipment, security and protection
equipment, and shop equipment. The objective of this audit was to determine whether the Operations Office
and OSTI adequately safeguarded and properly accounted for personal property in their possession and in
the possession of their non-integrated contractors.
(OSTI) are responsible for safeguarding and controlling personal property in their possession and in the
possession of their contractors. Categories of personal property include vehicles, heavy mobile equipment,
computers and software, office furniture and equipment, laboratory equipment, security and protection
equipment, and shop equipment. The objective of this audit was to determine whether the Operations Office
and OSTI adequately safeguarded and properly accounted for personal property in their possession and in
the possession of their non-integrated contractors.
The Department of Energy's Peer Review Practices