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Energy Management: DOE Has an Opportunity to Improve Its University of California Contracts

RCED-92-75 Published: Dec 26, 1991. Publicly Released: Dec 26, 1991.
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Highlights

Pursuant to a congressional request, GAO examined the Department of Energy's (DOE) use of nonstandard contract clauses in laboratory management and operation (M&O) contracts with a university, focusing on: (1) the impact of the nonstandard procurement and property management clauses; (2) other nonstandard clauses that may limit DOE ability to effectively oversee the contracts; and (3) DOE plans to require the inclusion of standard clauses in new contracts with the university.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Energy To ensure that adequate policies, procedures, and controls are in place to protect the government's interests, the Secretary of Energy, should require that the new M&O contracts with the University of California contain the standard DOE procurement and property management clauses.
Closed – Implemented
The new contracts with the University of California, which were signed November 20, 1992, contain the standard Department of Energy acquisition regulation clauses for procurement and property management.
Department of Energy To ensure that adequate policies, procedures, and controls are in place to protect the government's interests, the Secretary of Energy, should require that deviations from any other standard clauses provide DOE with authority at least equivalent to that provided in DOE standard clauses.
Closed – Implemented
The new contracts with the University of California, which were signed November 20, 1992, include the standard "disputes" clause, which according to DOE, gives the contracting officer ultimate authority to direct the contractor. A followup job is planned to examine the effectiveness of the new contract provisions. Therefore, an accomplishment report is not planned at this time.

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Energy
Contract oversightContract performanceFederal property managementGOCOIrregular procurementLaboratoriesMotor vehiclesRisk managementService contractsProcurement