Audit Report: OAS-M-06-07

Management Controls over Performance Fees in the Idaho National Laboratory Contract

Office of Inspector General

August 24, 2006

August 24, 2006

Management Controls over Performance Fees in the Idaho National Laboratory Contract

The Department of Energy (Department) did not always effectively use performance measures and fees to appropriately reward contractor performance. Specifically, the Department allocated approximately $1.1 million for 3 of the 27 performance measures and fees for Fiscal Year (FY) 2005, which were disproportionately high for the work performed. Four of the 49 measures and fees established for FY 2006 provided the contractor the opportunity to earn $1 million under similar circumstances. Also, some of the performance measures worth $460,000, were implemented well after the performance period began.

  • Audit Report: OAS-M-06-07 (415.28 KB)
    The Department of Energy (Department) did not always effectively use performance measures and fees to appropriately reward
    contractor performance. Specifically, the Department allocated
    approximately $1.1 million for 3 of the 27 performance measures
    and fees for Fiscal Year (FY) 2005, which were disproportionately
    high for the work performed. Four of the 49 measures and fees
    established for FY 2006 provided the contractor the opportunity to
    earn $1 million under similar circumstances. Also, some of the
    performance measures worth $460,000, were implemented well
    after the performance period began.