DOE's Award Fees at Rocky Flats Do Not Adequately Reflect Environmental, Safety, and Health Problems

GAO reviewed the Department of Energy's (DOE) management of award fees to the contractor operating its Rocky Flats Plant. GAO found that: (1) despite significant environmental, safety, and health (ES&H) problems at the plant, the contractor scored well in semiannual performance evaluations and received $26.8 million in award fees between fiscal years 1986 and 1988; (2) in its award fee process, DOE downplayed ES&H problems and placed more emphasis on production than on ES&H problems; (3) DOE headquarters did not review or approve the award fee evaluations; and (4) DOE began to implement improvements in its award fee process, including having all awards reviewed by DOE headquarters and requiring that evaluations weight ES&H matters by at least 51 percent.