Managing DOE

The Department of Energy (DOE) has spent millions of dollars to defend its contractors against lawsuits, but has not kept track of total costs and has been lax in reviewing bills submitted by law firms, including those for travel, meals, and other expenses. DOE's only attempt to collect data on litigation costs showed that the agency spent about $31 million in fiscal year 1992 on outside legal fees. However, significant other costs, such as the development and operation of litigation databases--averaging more than $8 million annually--were excluded from DOE's estimate. DOE has yet to establish criteria directing contractors to seek discounted fees or to set limits on billing by law firms for administrative expenses. Also, DOE has not adequately reviewed legal bills to ensure that they are justified. These shortcomings have caused DOE to pay more than was necessary for contractor litigation. The need for strong DOE controls will become more critical as the details of past radiation experiments on humans continue to be disclosed. These revelations will likely produce more lawsuits against the operators of DOE facilities, thus increasing legal costs for the agency.