In response to a congressional request, GAO reviewed certain aspects of the operations of the Department of Energy's (DOE) Naval Petroleum Reserve, California (NPRC), including: (1) the process used in establishing the fee for the contractor to operate NPRC in fiscal year 1984; (2) the adequacy of NPRC audit coverage; and (3) justification for the proposed construction of additional NPRC office space.
Recommendations for Executive Action
|Department of Energy||1. The Secretary of Energy should verify and document the consistency of the fee-setting process with relevant DOE criteria prior to awarding the next contract to operate NPRC.|
|Department of Energy||2. The Secretary of Energy should direct that the NPRC audit staff report to a management level that is independent of the officials who are directly responsible for the operations they review, such as the Inspector General, the Assistant Secretary for Fossil Energy, or the Under Secretary of Energy.|
|Department of Energy||3. The Secretary of Energy should fully consider the leasing alternative before authorizing new construction due to the relatively high cost of constructing a new facility at NPRC compared to leasing space in Bakersfield.|