National Laboratories: DOE Needs to Assess the Impact of Using Performance-Based Contracts
RCED-99-141
Published: May 07, 1999. Publicly Released: Jun 07, 1999.
Skip to Highlights
Highlights
Pursuant to a congressional request, GAO reviewed the Department of Energy's (DOE) progress in implementing performance-based contracting at its national laboratories, focusing on: (1) the status of performance-based contracting in DOE's national laboratory contracts; and (2) DOE's efforts to determine the impact of performance-based contracting.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Energy | Because DOE does not know whether performance-based contracting is improving performance at lower cost at its national laboratories and because GAO's previous recommendation to develop criteria for measuring the costs and benefits of paying fees to contractors for incurring increased financial risk was not implemented, the Secretary of Energy should evaluate the costs and benefits from using performance-based contracting at the national laboratories. While GAO recognizes that each laboratory contract is individually negotiated, DOE should nevertheless ensure that the fees it provides to motivate contractors and to compensate them for increased financial risk is based on an analysis of costs and benefits. The need for this type of evaluation is consistent with the principles of the Government Performance and Results Act of 1993 that require agencies to measure outcomes against their goals. |
Closed – Not Implemented
DOE disagrees with the recommendation on the need to conduct a cost benefit analysis of performance based contracting at its national laboratories. They believe they do this on an on-going basis, they have already decided to continue these contracts, and that any further comprehensive study would not be useful. They also said they will continue to consult with other organizations to find a model that would satisfy the recommendation. Since GAO's recommendation was made, DOE has made further revisions to its contracting practices, including adding a provision that allows the Secretary to withhold nearly all of a laboratory's fee for serious breaches of trust and/or violations of a serious nature.
|
Full Report
Office of Public Affairs
Topics
Contract performanceContract termsContractor paymentsCost controlFixed price contractsFixed price incentive contractsLaboratoriesManagement and operating contractsPerformance measuresPerformance measurement