DOE Management:

Improvements Needed In Oversight of Procurement and Property Management Practices at the Lawrence Livermore National Laboratory

T-RCED-91-88: Published: Aug 20, 1991. Publicly Released: Aug 20, 1991.

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GAO discussed management issues relating to the University of California's (UC) operation of the Lawrence Livermore National Laboratory (LLNL). GAO noted that: (1) LLNL did not have adequate controls to ensure that property in its custody was safeguarded against theft, unauthorized use, or loss; (2) because control over secret documents in LLNL custody was inadequate and decentralized, LLNL management could not readily ensure that secret information was being effectively managed or controlled; (3) LLNL inappropriately used sole-source purchases, did not comply with Department of Energy (DOE) review and approval requirements, and did not give adequate attention to subcontract costs; (4) LLNL had leased up to 58 passenger vehicles on a sole-source basis from UC, since capital funds were not available to purchase the vehicles and the General Services Administration did not have the types of vehicles required; (5) in several instances, UC overbilled LLNL for vehicles that had been returned to UC or which remained in service at LLNL; (6) LLNL leased vehicles without obtaining DOE authorization; and (7) DOE and LLNL have disagreed on the appropriate vehicle fleet size for at least 5 years, mainly because of inadequate DOE oversight of LLNL purchases and property and the mutuality concept included in certain clauses in the DOE contract with UC. GAO believes that there is a need for substantial improvements in UC laboratory management and DOE oversight of the management effort.

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