Nuclear Waste Cleanup: Actions Needed to Determine Whether DOE's New Contracting Approach is Achieving Desired Results
Fast Facts
The Department of Energy uses contractors to clean up radioactive and other hazardous materials at 15 nuclear weapons production and energy research sites. In 2019, it began a new contracting approach that was expected to help streamline the process and provide other benefits. As of June 2022, it had awarded 6 contracts worth up to a combined $47 billion through this model.
We found weaknesses in the new model, such as authorizations to start work before there is agreement on contract terms. DOE hasn't assessed the new model's effectiveness or whether it should continue to be implemented. Our recommendations address these issues and more.
Department of Energy Active Cleanup Sites with End State Contracting Model Contracts, as of June 2022
Highlights
What GAO Found
The Office of Environmental Management (EM), within the Department of Energy (DOE), uses contractors to carry out its mission of cleaning up radioactive and hazardous materials at DOE's 15 active environmental cleanup sites. In 2019, EM began using a new contracting approach, the End State Contracting Model (ESCM), with the goal of more effectively moving cleanup sites toward completion. As of June 2022, EM had awarded six contracts worth up to a combined $47 billion, using the ESCM. EM plans to use the model as its preferred contracting strategy for additional large environmental cleanup contracts going forward. According to EM documentation, the agency sought to incorporate elements of prior successful cleanup projects into the ESCM and to gain key benefits, such as a streamlined procurement process and more realistic pricing. Following the contract award, EM negotiates with the contractor for task orders that define scopes of work and costs for specific cleanup activities (see fig.).
Overview of the End State Contracting Model Process
EM developed a program plan to guide its implementation of the ESCM and has identified and shared lessons learned. However, EM officials said that ongoing challenges with the ESCM include ensuring that EM has the workforce capacity to effectively implement it, especially during the post-award phase. EM recently analyzed this issue but chose not to pursue its own recommendation to use an independent entity to assess its workforce capacity. Such an assessment would provide the impartial information that EM needs to better align its workforce to successfully administer the ESCM.
GAO's analysis of ESCM contracts found weaknesses with the model's post-award phase, such as the use of undefinitized contract actions, which authorize work to begin before EM and contractors reach final agreement on contract terms. Despite these weaknesses, EM has not systematically assessed its awarded ESCM contracts or developed performance goals or associated measures to assess whether the model is achieving its intended benefits. Implementing a formal, structured process to assess the ESCM's rollout and developing performance measures could help EM to better identify and address weaknesses and ensure that the model is achieving desired results before it awards billions more through the ESCM.
Why GAO Did This Study
The ESCM uses single-award indefinite delivery/indefinite quantity contracts with task orders for defined scopes of work after contract award. This represents a key difference from EM's prior contracting approach, which generally required developing detailed scopes of work for the full length of the contract prior to award.
Senate Report 117-39 accompanying S. 2792, a bill for the National Defense Authorization Act for Fiscal Year 2022, includes a provision for GAO to review the ESCM. This report (1) describes the current status of the ESCM and EM's reasons for implementing it, (2) examines EM's strategy for ESCM implementation, and (3) examines how EM has administered ESCM contracts. GAO reviewed EM documentation on awarded ESCM contracts and relevant policies and guidance; and interviewed EM officials, industry stakeholders, and relevant contractor personnel.
Recommendations
GAO recommends that DOE (1) pursue its own recommendation to use an independent entity to assess its workforce capacity; (2) implement a formal, structured process to assess ESCM contracts; and (3) develop measures to assess the model's performance. DOE agreed with GAO's recommendations and stated that it is taking steps to implement them by September 30, 2023.
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Energy | The Assistant Secretary of DOE's Office of Environmental Management should employ an external entity to perform an independent analysis of its acquisition workforce and support functions to assess its workforce capacity to administer ESCM contracts. (Recommendation 1) |
Closed – Implemented
As of November 2023, DOE has implemented this recommendation. DOE employed an external entity to perform an independent workforce analysis of the Office of Environmental Management's (EM) acquisition workforce, including its workforce capacity to administer contracts under the End State Contracting Model. In August 2023, EM received the results of this analysis, which included both observations on EM's current acquisition workforce and processes, as well as recommendations for actions EM should consider taking to address workforce-related challenges. This independent analysis will allow EM to better address these challenges and improve its overall administration of contracts under the End State Contracting Model.
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| Department of Energy | The Assistant Secretary of DOE's Office of Environmental Management should develop and implement a structured process to systematically assess the ESCM, including processes for formally documenting and sharing lessons learned and identifying, analyzing, and addressing challenges to ensure that future ESCM contracts are effectively implemented. (Recommendation 2) |
Open – Partially Addressed
As of February 2024, DOE is taking steps to address this recommendation. For example, DOE's Office of Environmental Management (EM) established new procedures for overseeing End State Contracting Model contracts and their associated task orders, and developed and implemented a new program for identifying and sharing lessons learned. These represent positive steps toward ensuring that EM has a process for assessing its End State Contracting Model initiative. However, a systematic assessment of this initiative must also include specific performance measures and goals for use in measuring EM's progress toward achieving them. Developing and implementing such performance measures and goals would provide EM with better assurance that the End State Contracting Model is performing as intended to improve its overall acquisition efforts.
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| Department of Energy |
Priority Rec.
The Assistant Secretary of DOE's Office of Environmental Management should develop and document specific performance goals for the ESCM and measures to track progress toward achieving them. EM should use this performance information to improve the ESCM and better ensure that it is achieving desired results. (Recommendation 3) |
Open
As of February 2024, DOE is working to address this recommendation. For example, DOE's Office of Environmental Management (EM) has taken steps to require each task order associated with End State Contracting Model contracts to document key metrics for use in assessing performance. In addition, EM officials told us they are in the process of developing new guidance that will require the consistent use of specific metrics to assess the performance of individual contracts and associated task orders, as well as the End State Contracting Model initiative as a whole. Until EM implements measurable performance goals and can assess its progress toward meeting them, EM risks continuing to award billions of dollars through a new contracting approach that it has not verified is achieving its desired results in improving EM's contracting for environmental cleanup.
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