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Department of Energy: Contract Reform Is Progressing, but Full Implementation Will Take Years

RCED-97-18 Published: Dec 10, 1996. Publicly Released: Jan 22, 1997.
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Highlights

Pursuant to a congressional request, GAO reviewed certain aspects of the Department of Energy's (DOE) contract reform initiative.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Energy To continue DOE's reforms that are aimed at placing more cost risk on its contractors through the use of cost incentives and in a further effort to bring M&O contracting into the mainstream of federal contracting, the Secretary of Energy should adopt federal contract pricing policies such as those contained in the Federal Acquisition Regulation.
Closed – Implemented
On March 11, 1999, DOE published a final rule in the Federal Register. The rule amends the Department of Energy Acquisition Regulation by including a section that covers "Types of Contracts and fee arrangements." The new policy refers to the Federal Acquisition Regulation (FAR) and applies FAR concepts dealing with contract type and fees. Additionally, costs are negotiated in accordance with the Truth in Neogtiations Act where appropriate. Finally, the use of a negotiation memorandum is required.
Department of Energy The Secretary of Energy should require that the goals written into the M&O contracts be clearly linked to DOE's strategic plan and annual performance goals.
Closed – Implemented
On June 27, 1997, DOE revised its acquisition regulations to require that contract performance and expectations be consistent with DOE's strategic goals and objectives.
Department of Energy The Secretary of Energy should require that a mandatory standard contract clause be included in all M&O contracts that gives DOE the exclusive authority to set contract goals and incentives that support the strategic plans and missions of the Department.
Closed – Implemented
On March 11, 1999, DOE published a final rule in the Federal Register. The rule amends the Department of Energy Acquisition Regulation by including a new standard contract clause that states that the DOE contracting officer may make a unilateral determination of goals and incentives in instances where there are differences between the contractor and the contracting officer.

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Topics

Energy
Contract negotiationsContracting officersFederal procurement policyFederal property managementManagement and operating contractsPerformance measuresProcurement practicesProcurement regulationsSchedule slippagesPerformance goals