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Department of Energy: Management and Oversight of Cleanup Activities at Fernald

RCED-97-63 Published: Mar 14, 1997. Publicly Released: Mar 18, 1997.
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Highlights

Pursuant to a congressional request, GAO provided information on: (1) the extent to which the Department of Energy (DOE) is providing effective management and oversight of two key cleanup projects at its Fernald site--the vitrification pilot plant project and the uranyl nitrate hexahydrate project--that were reported on in the Cincinnati Enquirer; (2) DOE's oversight of safety and health activities at the site; (3) the contractor's compliance with certain performance and financial system procedures; and (4) DOE's overall contracting and management initiatives and how they may resolve any problems identified at Fernald.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Energy In view of the approaching expiration of the contract with Fluor Daniel Fernald, the Secretary of Energy should ensure that the contract reform initiatives that DOE has undertaken are fully integrated into the Fernald contract.
Closed – Implemented
According to the Assistant Contracting Officer at Fernald, DOE extended its contract with Fluor-Daniels-Fernald for an additional 2 years. The contract, originally set to expire on December 1, 1997, now runs through November 10, 1999 and incorporates DOE's major contract reform initiative.
Department of Energy In view of the approaching expiration of the contract with Fluor Daniel Fernald, the Secretary of Energy should ensure that the Fernald Area Office strengthens its oversight at Fernald in order to correct the project management, safety and health program, and performance and financial system weaknesses that GAO has identified.
Closed – Implemented
In response to the report, DOE implemented several site-wide activities to strengthen project management skills and to improve communication between project managers and contractor officials. For example, key DOE project staff have completed a 3-week series of management courses and have actively participated in efforts to develop requests for proposals for clean-up projects. Also, DOE project managers are now meeting weekly to discuss critical projects and attending monthly program reviews and evaluations of project costs. Finally, DOE Fernald staff have expanded their methods for disseminating lessons learned from implementing projects, including those cited in the report, and have received training on the contractor's major project management and cost account systems.

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Topics

Contract oversightContractor violationsCost overrunsFinancial managementHealth hazardsRadiation safetyRadioactive waste disposalSchedule slippagesContract performanceConstruction