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Energy Management: High Risk Area Requires Fundamental Change

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Report Type Reports and Testimonies
Report Date Feb. 17, 1993
Report No. T-RCED-93-7
Subject
Summary:

The Department of Energy's (DOE) contract management philosophy has put billions of dollars in yearly contractors' services at risk. These problems date back to the Manhattan Project of the 1940s, when the government, desirous of enlisting the private sector in developing the atomic bomb, gave contractors wide latitude in running the government's weapons research and production facilities. Today, DOE is trying to overcome this legacy of inadequate oversight by giving contractors more incentive to act responsibly while simultaneously increasing oversight of contractors' activities. GAO applauds these efforts but recognizes that they will take years to implement. With the new administration, DOE has a chance to build on the momentum from recent changes in contract management. The new administration needs to continue demanding greater contractor accountability. Improved information and financial management systems, along with better-trained technical staff, will also be needed to ensure accountability. Finally, changes of this magnitude will take long-term commitment and sustained leadership to implement.

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