Summary: House Resolution 2788 would amend the Federal Energy Administration (FEA) Act of 1974 to upgrade its contracting process to prevent conflicts of interest on the part of the contractors and establish an Office of Inspector General within FEA. Persons entering into contracts for conducting research, development, evaluation activities, or technical and management support services would be required to furnish information on possible organizational conflicts of interest. There is a need for a strong internal audit and inspection capability directly responsible to the agency head in all federal agencies. FEA inability to effect timely resolution of unresolved regulatory issues has remained its most significant problem. Its system of settling penalties by compromise has led to inequities due to a lack of formal guidance in penalty assessment. FEA also has problems in carrying out its compliance and enforcement program because of the small number of auditors and investigators in relation to the number of petroleum producers, refiners, wholesalers, and retailers. There should be no criminal investigation organization within FEA, though its personnel should be trained to recognize potential criminal cases.
