Department of Energy: Subcontracting Practices

Pursuant to a congressional request, GAO reviewed whether the Department of Energy (DOE) has policies or contract requirements that: (1) limit subcontracting between corporate affiliates or limit the amount a subcontractor can charge for profit when it contracts with a corporate affiliate; and (2) ensure that contractors and subcontractors make payments they owe to suppliers or other companies supporting their work. GAO noted that concerns were raised because of a subcontract Lockheed Martin Advanced Environmental Systems had with a corporate affiliate, Lockheed Martin Idaho Technologies Companies, for cleaning up a radioactive waste dump, Pit 9 at DOE's Idaho Falls site.