Additional Improvements Needed in Logistics Support for the Strategic Petroleum Reserve

Gao ID: RCED-84-12 April 13, 1984

GAO reviewed the Department of Energy's (DOE) efforts to develop an integrated logistics support system for the Strategic Petroleum Reserve (SPR) storage locations. The review was made as part of a comprehensive effort to evaluate DOE performance in developing, filling, and maintaining the SPR.

During initial planning and construction of the SPR, emphasis was placed upon meeting oil storage goals as quickly as possible rather than developing a logistics support system, which resulted in difficulties in acquiring spare parts and replacing defective equipment at storage locations. DOE initiated logistics support planning, with the intention of making its operations and maintenance contractor responsible for this work, but the scope of the contract work was not clear and the contractor used support planning funds for other activities. In 1982, DOE hired a new contractor and redefined the logistics support planning responsibilities more clearly; however, the new contractor's progress has been slower than expected, and DOE due dates for various segments of the system have been consistently missed. As of September 1983, the contractor had not developed the system's database for operating and maintenance histories and, without the complete database, the system cannot accurately estimate spare parts requirements. Despite the slow progress, GAO found that DOE has paid performance incentive bonuses to contractors for logistics support work as well as for other tasks. In addition, the actual development cost of the logistics support planning system is uncertain because DOE has not been able to track the costs incurred by some of its contractors.

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: John W. Sprague Team: General Accounting Office: Resources, Community, and Economic Development Division Phone: (202) 512-7783


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