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Additional Improvements Needed in Logistics Support for the Strategic Petroleum Reserve

RCED-84-12 Published: Apr 13, 1984. Publicly Released: Apr 13, 1984.
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Highlights

GAO reviewed the Department of Energy's (DOE) efforts to develop an integrated logistics support system for the Strategic Petroleum Reserve (SPR) storage locations. The review was made as part of a comprehensive effort to evaluate DOE performance in developing, filling, and maintaining the SPR.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Energy The Secretary of Energy should instruct the SPR Project Manager to more closely monitor contractor activities to ensure that logistics support activities at the Big Hill site are properly completed and implemented in a timely manner.
Closed – Not Implemented
DOE has stopped all further site development.
Department of Energy The Secretary of Energy should instruct the SPR Project Manager to more closely monitor contractor activities to ensure that equipment and spare parts acquired for the Big Hill site are standardized to the maximum extent possible.
Closed – Implemented
Equipment purchased and installed is standardized to the extent possible.
Department of Energy The Secretary of Energy should instruct the SPR Project Manager to take appropriate steps to determine the optimum level of SPR spare and repair parts inventories and warehousing facilities based on operational experience and design specifications.
Closed – Not Implemented
Site construction stopped prior to becoming operational.
Department of Energy The Secretary of Energy should instruct the SPR Project Manager to develop a cost-tracking system that clearly identifies costs being expended in the development and operation of the SPR integrated logistics support system.
Closed – Not Implemented
Site construction stopped prior to becoming operational.
Department of Energy The Secretary of Energy should instruct the SPR Project Manager to structure the contract award fee plans in future contracts so that: (1) award fees are not paid for less than satisfactory performance and (2) award fee payments are clearly linked to the contractor's actual achievement in meeting stated objectives.
Closed – Implemented
DOE revised its contract award fee process to better link fee with performance.

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Topics

ContractorsEquipment inventoriesEquipment maintenanceFacility maintenanceLogisticsOil resourcesPetroleum storageSpare partsReal propertyLogistics support