Further Improvements Needed in the Department of Energy for Estimating and Reporting Project Costs
MASAD-82-37
Published: May 26, 1982. Publicly Released: May 26, 1982.
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Highlights
GAO examined Department of Energy (DOE) policies, procedures, and practices for estimating the costs of major systems and the accuracy of information provided to Congress. The GAO survey focused on the Transient Reactor Test Facility Upgrade and the Program Support Facility projects.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Energy | The Secretary of Energy should ensure that all regional offices develop and implement guidelines on the preparation and review of cost estimates. |
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Department of Energy | The Secretary of Energy should identify and report to Congress the magnitude of major cost transfers between capital and operating funds and major changes in project scope during the past 2 years. |
Closed – Not Implemented
DOE disagreed with the recommendaton that major cost transfers between capital and operating funds took place. Therefore, it will take no action.
|
| Department of Energy | The Secretary of Energy should institute tighter controls over project funds by requiring DOE Headquarters review and approval of all cost classification changes within individual projects. |
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Department of Energy | The Secretary of Energy should direct the DOE Chicago Operations and Regional Office to issue specific cost estimating guidelines. |
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Department of Energy | The Secretary of Energy should direct the DOE Chicago Operations and Regional Office to ensure that projects are adequately defined in the conceptual design stage before the cost estimate is submitted to Congress. |
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Department of Energy | The Secretary of Energy should direct the DOE Chicago Operations and Regional Office to require that realistic estimates for inflation are used and consistently followed. |
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Department of Energy | The Secretary of Energy should direct the DOE Chicago Operations and Regional Office to allow for adequate provision in cost estimates for program uncertainties, especially in high technology or first-of-a-kind projects. |
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Department of Energy | The Secretary of Energy should direct the DOE Chicago Operations and Regional Office to require complete documentation of major revisions to the cost estimate to ensure traceability. |
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
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