Environmental Cleanup at DOD: Better Cost-Sharing Guidance Needed at Government-Owned, Contractor-Operated Sites

DOD partially concurred, stating that policy provides the proper level of consistency among the military components while permitting the flexibility necessary for site-specific assessment and decisionmaking to ensure fair treatment of all parties. It is DOD policy to comply with the Federal Acquisition Regulation (FAR). In the absence of FAR guidance on how to treat environmental cleanup costs, services and DLA have taken different approaches to deciding whether and when to seek contributions from contractors and other parties. This recommendation is being closed because a Senate Armed Services Committee (SASC) Defense Authorization Act report provision directs the Secretary of Defense to implement the recommendation and GAO to continue its review of the issue and report to the committee by February 1, 1998. The same SASC provision recommends a $30-million reduction to cleanup funding in fiscal year 1998 due to inefficiencies and mismanagement in DOD's inaction on third-party cleanup cost-recovery.

DOD partially concurred, stating that this is being done, in that the normal Preliminary Assessment/Site Inspection phase of the cleanup process identifies potentially responsible parties, and informed decisions are made as to whether cost recovery is prudent and cost effective. However, case studies addressed in the report indicate that this was not happening. This recommendation is being closed due to action taken by the Senate Armed Services Committee (SASC) in its Defense Authorization Act report for fiscal year 1998. A SASC report provision directs the Secretary of Defense implement the recommendation and GAO to continue its review of the issue and report to the committee by February 1, 1998. The same SASC provision recommends a $30-million reduction to cleanup funding in fiscal year 1998 due to inefficiencies and mismanagement in DOD's inaction on third-party cleanup cost-recovery.

DOD partially concurred, stating that this is being done. In the normal Preliminary Assessment/Site Inspection phase of the cleanup process identifies potentially responsible parties and informed decisions are made as to whether cost recovery is prudent and cost effective. However, cases studies addressed in the report indicate that this was not happening. This recommendation is being closed due to action taken by the Senate Armed Services Committee (SASC) in its Defense Authorization Act report for fiscal year 1998. A SASC report provision directs the Secretary of Defense implement the recommendation and GAO to continue its review of the issue and report to the committee by February 1, 1998. The same SASC provision recommends a $30-million reduction to cleanup funding in fiscal year 1998 due to inefficiencies and mismanagement in DOD's inaction on third-party cleanup cost-recovery.

DOD partially concurred, stating that it should not be required to gather data on non-DERP costs incurred by agencies and organizations outside of DOD. DOD has neither the manpower nor the funds to develop and populate limited-use databases. DOD agrees that timely and accurate cost data available within the Department should be collected and maintained. DOD feels it is meeting this objective through its present accounting systems and financial records. However, case studies addressed in the report indicate that this was not happening. This recommendation is being closed because a SASC Defense Authorization Act report provision directs the Secretary of Defense to implement the recommendation and GAO to continue its review of the issue and report to the committee by February 1, 1998. The same SASC provision recommends a $30-million reduction to cleanup funding in fiscal year 1998 due to inefficiencies and mismanagement in DOD's inaction on third-party cleanup cost-recovery.

DOD partially concurred, stating that the Annual Report to Congress is prepared to meet the requirements of 10 USC 2706(a), and is not intended to represent all expenses associated with other funding sources other than the Defense Environmental Restoration or Base Closure and Realignment Accounts. However, GAO's report stated that excluding all cleanup expenses of an entire agency such as DLA because money to pay those expenses came from a different federal account could materially understate cleanup costs. This recommendation is being closed because a SASC Defense Authorization Act report provision directs the Secretary of Defense to implement the recommendation and GAO to continue its review of the issue and report to the committee by February 1, 1998. The same SASC provision recommends a $30-million reduction to cleanup funding in fiscal year 1998 due to inefficiencies and mismanagement in DOD's inaction on third-party cleanup cost-recovery.