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DOE Should Strengthen Its Controls Over Award Fees to Contractors

RCED-84-39 Published: Nov 22, 1983. Publicly Released: Nov 22, 1983.
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Highlights

GAO evaluated the Department of Energy's (DOE) policies and procedures for determining fees available to contractors working for DOE under cost-plus-award-fee contracts.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Energy The Secretary of Energy, to aid DOE procurement officials in establishing fee objectives for negotiating award-fee contracts that will produce fair and reasonable prices and the lowest ultimate overall cost to the Government, should clarify guidance for calculating fee negotiation objectives to help eliminate inconsistent practices among operations offices.
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Department of Energy The Secretary of Energy, to aid DOE procurement officials in establishing fee objectives for negotiating award-fee contracts that will produce fair and reasonable prices and the lowest ultimate overall cost to the Government, should include evaluations of how operations offices compute fee bases and maximum available fees in Procurement Management and Assistance Directorate reviews of operations offices' procurement activities.
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

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Topics

Contract performanceContractor paymentsCost plus award fee contractsCost reimbursement contractsProcurement policyStandards evaluationProcurementSubcontractingEngineeringGovernment procurement