[Request for Opinion on Several Questions Related to New DOE Utility Services Contract]

Pursuant to a congressional request, GAO addressed questions pertaining to the Department of Energy's (DOE) new Utility Services Contract for uranium enrichment. It was determined that: (1) the new contract incorporated certain changes designed to enhance the ability of DOE to successfully compete in the uranium enrichment market and recover its costs; (2) in developing and issuing the contract, DOE did not comply with certain requirements of the Administrative Procedure Act, the DOE Organization Act, and the Atomic Energy Act; (3) the write-off of certain undepreciated equipment was not carried out in accordance with normal accounting principles and did not comply with the Atomic Energy Act; and (4) DOE violated the Atomic Energy Act by not recovering the acquisition costs of uranium feedstock sold in conjunction with enrichment services.