Nuclear Security: DOE Oversight of Livermore's Property Management System Is Inadequate
RCED-90-122
Published: Apr 18, 1990. Publicly Released: Jul 03, 1990.
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Highlights
Pursuant to a congressional request, GAO determined the extent of property losses at the Department of Energy's (DOE) Lawrence Livermore National Laboratory (LLNL) and assessed the adequacy of LLNL controls over government-owned property.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Energy | To enhance accountability over government-owned property at LLNL, the Secretary of Energy should direct the San Francisco Operations Office Manager to provide appropriate written directives to the University of California to safeguard and protect government property in the university's possession or custody as provided for in the current contract. |
Closed – Implemented
DOE agreed with the recommendation. Property management instructions were given to the laboratory and incorporated into the laboratory's property management policies and procedures manual. The laboratory is using the manual as a basis for managing the government owned property at the laboratory.
|
| Department of Energy | To improve oversight of the LLNL property management system, the Secretary of Energy should direct the San Francisco Operations Office Manager to identify areas, including internal control weaknesses, in the laboratory's current property management system that do not provide the same level of protection for government-owned property as that which is provided by federal and departmental regulation. Following identification of those weaknesses, the San Francisco Operations Office, should, as required by regulation, advise the laboratory of the deficiencies that need to be corrected, and establish an agreed upon time frame for mutually resolving and completing the corrective actions. |
Closed – Implemented
DOE agreed with the recommendation. DOE performed a line-by-line analysis of the laboratory's property management policies and procedures manual to ensure it was consistent with federal and departmental property management regulations. Further, DOE is tracking and following up with the laboratory on all open audit findings on a quarterly basis.
|
| Department of Energy | To improve oversight of the LLNL property management system, the Secretary of Energy should direct the San Francisco Operations Office Manager to develop and provide written guidance to the laboratory, spelling out the criteria for performance or property management functions. |
Closed – Implemented
DOE agreed with the recommendation. The DOE San Francisco field office worked closely with the laboratory in developing the mutually agreed to property management system. The document contains all necessary criteria to perform all property management functions necessary.
|
| Department of Energy | To improve oversight of the LLNL property management system, the Secretary of Energy should direct the San Francisco Operations Officer Manager to clearly define, in conjunction with LLNL, written terms and provisions of the agreed-upon mutually approved system. |
Closed – Implemented
DOE agreed with the recommendation. The DOE San Francisco field office worked closely with the laboratory in developing the mutually agreed to property management system, including the definition of terms.
|
| Department of Energy | To improve oversight of the LLNL property management system, the Secretary of Energy should direct the San Francisco Operations Office Manager to correct the deficiencies identified during its appraisals of the LLNL property management system, as well as those internal control weaknesses GAO identified during this review. These include, among other things, the need to: (1) tag, mark, or otherwise identify as government property all items of equipment that the laboratory requires for use in its weapons and energy research and development programs; (2) independently verify the consumption of precious metals, such as gold and platinum, held by laboratory employees and precious metal inventories held by laboratory subcontractors; (3) establish and implement physical controls to prevent laboratory employees and subcontractors from removing government property from the laboratory without proper authorization; and (4) establish a loss ratio standard for all non-capital equipment. |
Closed – Implemented
DOE agreed with the recommendation. Subparts 1, 2, and 3 of the recommendation have been completed. Subpart 4 is a moot point because non-capital equipment is no longer accounted for. However, the missing non-capital items were analyzed to determine if there were any property management problems requiring attention.
|
| Department of Energy | To improve oversight of the LLNL property management system, the Secretary of Energy should direct the San Francisco Operations Office Manager to include its standard property management provision in the contract with the University of California when the contract is renegotiated in 1992. |
Closed – Implemented
DOE agreed with the recommendation. Contract negotiations began in the fall of 1991 and DOE officials have indicated they will try to get the standard property clause in the new contract. The University of California renewal contracts were signed on November 20, 1992. The new contracts include the standard DEAR Property Management clause (DEAR 970.5204-21).
|
| Department of Energy | To enhance accountability over government-owned property at LLNL, the Secretary of Energy should direct the San Francisco Operations Office Manager to modify the contract with the university in 1992 by identifying additional circumstances under which the contractor will be held liable for the loss of government-owned property in its custody. |
Closed – Implemented
Contract negotiations began in the fall of 1991. DOE officials have indicated that they will attempt to expand the accountability of the university for property losses. The DOE San Francisco Field Office directed LLNL to develop and implement appropriate procedures. The DEAR-970 property management clause was included as a negotiable item for contract renewal in 1992.
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