DOE Should Strengthen Its Controls Over Award Fees to Contractors

Gao ID: RCED-84-39 November 22, 1983

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.

DOE favors using award-fee contracts because it believes that they provide the best incentive for good performance. GAO found that DOE needs to improve both its guidance and its practices for calculating allowable fees for award-fee contracts. Procurement reviews performed by GAO in fiscal year 1982 at three operations offices were not conducted in sufficient depth to detect the instances of noncompliance and inconsistent interpretation of procurement guidance. GAO believes that DOE needs to review procurement activities more frequently to ensure that fee calculations are proper.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

Director: Daniel C. White Team: General Accounting Office: Resources, Community, and Economic Development Division Phone: (301) 353-3711


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