Major Management Challenges and Program Risks
Department of Energy Gao ID: GAO-03-100 January 1, 2003In its 2001 performance and accountability report on the U.S. Department of Energy (DOE), GAO identified important issues facing the department as it works to carry out its multiple, complex, and highly diverse missions. The information GAO presents in this report is intended to help to sustain congressional attention on these challenges and a departmental focus on continuing to make progress in addressing these challenges and ultimately overcoming them. The report should help improve government for the benefit of the American public. This report is part of a special series of governmentwide and agency specific issues.
DOE has taken steps to address the specific performance and management challenges that we previously identified. However, each of these challenges requires more work and vigilance to be overcome. In addition, the agency must face emerging challenges to meet the nation's energy needs and upgrade DOE's deteriorating infrastructure. Address security threats and problems: DOE has upgraded its physical, cyber and document security. However, the terrorist attacks of September 11, 2001, changed the threat that DOE had planned for and will likely require new security measures and additional resources. Improve management of the nation's nuclear weapons stockpile: The National Nuclear Security Administration, an agency within DOE, continues to develop its new planning, programming, and budgeting system and redesign its organization. However, both activities are far from complete and will need continued executive leadership to ensure that these major changes are effectively implemented. Resolve problems in contract management that place DOE at high risk for fraud, waste, and abuse: DOE has made progress in implementing contract reforms by using alternative contract types, competing more contracts, and using performance-based requirements. However, it is unclear whether these reforms have improved contractor performance. To better ensure the effectiveness of its initiatives, DOE must establish clear goals, results-oriented outcome measures, and performance data. Improve management for cleanup of DOE radioactive and hazardous wastes: DOE's environmental management program has begun initiatives to improve contract management, streamline business practices, and increase the technical expertise of DOE staff. However, continued management leadership is needed to ensure that these initiatives are implemented in a safe manner to accomplish program goals of accelerating risk reduction and reducing overall cleanup costs. Enhance DOE leadership in meeting the nation's energy needs: Our nation's energy supply system is under stress and is a potential terrorist target. Enhanced DOE leadership is needed to research new energy technologies, help develop a competitive electricity generation system, and reduce the vulnerability of the U.S. economy to supply disruptions of petroleum. Revitalize DOE's infrastructure: DOE has a new program to spend billions of dollars to upgrade its production facilities, research and development laboratories, and other infrastructure. DOE needs to ensure that these major projects are managed effectively and efficiently.
GAO-03-100, Major Management Challenges and Program Risks: Department of Energy
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Performance and Accountability Series:
January 2003:
Major Management Challenges and Program Risks:
Department of Energy:
GAO-03-100:
A Glance at the Agency Covered in This Report:
The Department of Energy is a multibillion-dollar enterprise with
multiple,
diverse missions, including:
* fostering secure and reliable energy systems that are environmentally
and economically sustainable,
* providing stewardship for the nation‘s nuclear weapons and nuclear
material,
* cleaning up the environment to eliminate the legacy of early nuclear
weapons development activities, and
* supporting U. S. leadership in energy- related science and
technology.
To carry out these missions, the department has more than 50 major
facilities
in 35 states, including national laboratories, nuclear weapons
production
facilities, and facilities undergoing environmental cleanup.
Figure: The Department of Energy‘s Budgetary and Staff Resources:
[See PDF for image]
[End of figure]
This Series:
This report is part of a special GAO series, first issued in 1999
and updated
in 2001, entitled the Performance and Accountability Series: Major
Management
Challenges and Program Risks. The 2003 Performance and Accountability
Series
contains separate reports covering each cabinet department, most
major
independent agencies, and the U. S. Postal Service. The series also
includes
a governmentwide perspective on transforming the way the government
does
business in order to meet 21st century challenges and address long-
term fiscal
needs. The companion 2003 High- Risk Series: An Update identifies
areas at high
risk due to either their greater vulnerabilities to waste, fraud,
abuse, and
mismanagement or major challenges associated with their economy,
efficiency,
or effectiveness. A list of all of the reports in this series is
included at
the end of this report.
GAO Highlights:
Highlights of GAO-03-100, a report to Congress included as part
of GAO‘s
Performance and Accountability Series:
January 2003:
Performance and Accountability Series: Department of Energy:
Why GAO Did This Report:
In its 2001 performance and accountability report on the U.S.
Department
of Energy (DOE), GAO identified important issues facing the department
as
it works to carry out its multiple, complex, and highly diverse
missions.
The information GAO presents in this report is intended to help to
sustain
congressional attention on these challenges and a departmental focus on
continuing to make progress in addressing these challenges and
ultimately
overcoming them. The report should help improve government for the
benefit
of the American public. This report is part of a special series of
governmentwide and agency-specific issues.
What GAO Found:
DOE has taken steps to address the specific performance and management
challenges that we previously identified. However, each of these
challenges
requires more work and vigilance to be overcome. In addition, the
agency must
face emerging challenges to meet the nation‘s energy needs and upgrade
DOE‘s
deteriorating infrastructure.
* Address security threats and problems. DOE has upgraded its physical,
cyber and document security. However, the terrorist attacks of
September 11,
2001, changed the threat that DOE had planned for and will likely
require new
security measures and additional resources.
* Improve management of the nation‘s nuclear weapons stockpile. NNSA,
an
agency within DOE, continues to develop its new planning, programming,
and
budgeting system and redesign its organization. However, both
activities are
far from complete and will need continued executive leadership to
ensure that
these major changes are effectively implemented.
* Resolve problems in contract management that place DOE at high risk
for
fraud, waste, and abuse. DOE has made progress in implementing
contract
reforms by using alternative contract types, competing more contracts,
and
using performance-based requirements. However, it is unclear whether
these
reforms have improved contractor performance. To better ensure the
effectiveness of its initiatives, DOE must establish clear goals,
results-
oriented outcome measures, and performance data.
* Improve management for cleanup of DOE radioactive and hazardous
wastes.
DOE‘s environmental management program has begun initiatives to improve
contract management, streamline business practices, and increase the
technical
expertise of DOE staff. However, continued management leadership is
needed
to ensure that these initiatives are implemented in a safe manner to
accomplish
program goals of accelerating risk reduction and reducing overall
cleanup costs.
* Enhance DOE leadership in meeting the nation‘s energy needs. Our
nation‘s
energy supply system is under stress and is a potential terrorist
target.
Enhanced DOE leadership is needed to research new energy technologies,
help
develop a competitive electricity generation system, and reduce the
vulnerability of the U.S. economy to supply disruptions of petroleum.
* Revitalize DOE‘s infrastructure. DOE has a new program to spend
billions
of dollars to upgrade its production facilities, research and
development
laboratories, and other infrastructure. DOE needs to ensure that these
major projects are managed effectively and efficiently.
What Remains to Be Done:
GAO believes that DOE should:
* Continue its focus on security upgrades needed for meeting new
terrorist
threats.
* Ensure that the National Nuclear Security Agency (NNSA) continues
progress
with its major operational and organizational reforms.
* Establish results-oriented performance data to determine if
contractor
performance has improved.
* Complete initiatives to accelerate cleanup and reduce costs.
* Enhance efforts to ensure a stable, reliable energy supply.
* Manage infrastructure upgrade projects effectively.
To view the full report, click on the link above.
For more information, contact Robert A. Robinson, at 202-512-3841, or
robinsonr@gao.gov.
Contents:
Transmittal Letter:
Major Performance and Accountability Challenges:
GAO Contacts:
Related GAO Products:
Performance and Accountability and High-Risk Series:
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Transmittal Letter:
January 2003:
The President of the Senate
The Speaker of the House of Representatives:
This report addresses the major management challenges facing the U.S.
Department of Energy (DOE) as it works to carry out its multiple and
highly diverse missions. These missions include maintaining nuclear
weapons, fostering a reliable energy supply, cleaning up environmental
contamination from prior weapons activities, and promoting U.S.
leadership in science. It is part of a special series entitled the
Performance and Accountability Series: Major Management Challenges and
Program Risks, which GAO has issued biennially since January 1999.
This report discusses the actions that DOE has taken or are under way
to address the challenges GAO reported in its series 2 years ago, in
January 2001, and major events that have occurred that significantly
influence the environment in which the department carries out its
mission. Also, GAO summarizes the challenges that remain and new ones
that have emerged.
This analysis should help the new Congress and the administration carry
out their responsibilities and improve government for the benefit of
the American people. For additional information about this report,
please contact Robert A. Robinson, Managing Director, Natural Resources
and Environment, at (202) 512-3841 or at robinsonr@gao.gov.
David M. Walker
Comptroller General
of the United States:
Signed by David M. Walker:
[End of section]
Major Performance and Accountability Challenges:
The Department of Energy‘s (DOE) diverse missions of maintaining the
nation‘s nuclear weapons stockpile, fostering a reliable and
sustainable energy supply for the nation, cleaning up contamination
from prior weapons activities, and promoting leadership in science are
not only technically difficult and complex but also, in many cases,
politically sensitive. In our 2001 report on management challenges and
program risks we identified six areas, or challenges, that warranted
the attention of DOE‘s management. These issues were related to
addressing security concerns, maintaining the nuclear weapons
stockpile, improving contract management, cleaning up radioactive and
hazardous wastes, achieving nonproliferation goals, and improving
financial management. In that report we pointed out that many of those
challenges are long-standing and that sustained management attention
will be needed to correct the underlying weaknesses and implement
needed improvements. We also pointed out that DOE has undertaken
corrective action in all these areas, but because of the nature and
difficulty of the challenges, achieving lasting improvements may take
several years.
Over the past 2 years, two events--the terrorist attacks of September
11, 2001, and energy shortages in several western states--have further
complicated DOE‘s missions. DOE could be an appealing target for
terrorist groups because of its role in maintaining the nation‘s
nuclear weapons stockpile and handling vast quantities of radioactive
and hazardous materials. Heightened security will be needed at DOE
facilities. DOE may also have to develop new security measures.
Similarly, energy shortages have underscored the vulnerability of our
energy supplies and raised questions about our almost exclusive
reliance on petroleum in some sectors. A stable and reliable energy
supply is critical for consumers, the U.S. economy, and our national
security. DOE must address the ramifications of these events on its
programs, in addition to addressing its ongoing management challenges
and program risks.
DOE continues to be an agency with multiple challenges. In this year‘s
report we identify six areas where DOE‘s management attention is
needed. Four of the areas are continued from 2001. These include
addressing security concerns, managing the nuclear weapons stockpile,
improving contract management, and cleaning up radioactive and
hazardous wastes. For the most part these were continued because of the
difficult nature of the challenge itself or because new issues arose
within the challenge. In the case of contract management, for example,
corrective action will take many years to be fully realized. In the
case of DOE security, the September 11 attacks raised new major
security concerns for DOE to address. In addition, we are adding two
new management challenges. One relates to meeting the nation‘s energy
needs and reducing our dependence on foreign oil. DOE can provide
enhanced leadership in addressing this key national issue. The other
relates to revitalizing DOE‘s infrastructure, which is in poor
condition or reaching the end of its design life. DOE‘s performance in
addressing these challenges will significantly affect its ability to
efficiently and effectively carry out its missions. Two management
challenges from 2001 were dropped. Financial management was dropped
because, among other things, DOE had no material internal control
weaknesses and received a clean opinion on its financial statements for
fiscal year 2001. Achieving nonproliferation goals was dropped because
of improvement DOE made to obtain better access to facilities and
information in Russia, verify the use of program funds, and better
coordinate DOE‘s nonproliferation programs.
Performance and Accountability Challenges:
Figure: Performance and Accountability Challenges:
[See PDF for image]
[End of figure]
Address Security Threats And Problems:
The terrorist attacks of September 11, 2001, brought into sharp focus
the necessity for all federal agencies to take threats to their
facilities seriously. For DOE and the National Nuclear Security
Administration (NNSA), a separately organized agency within DOE, the
threats have taken on added importance.[Footnote 1] DOE and NNSA
facilities could be appealing targets to terrorist groups because of,
among other things, their role in maintaining the nuclear weapons
stockpile and handling vast quantities of radioactive and hazardous
materials. Addressing this threat will likely require developing new
security measures and committing significant additional resources. DOE
must address this new challenge while addressing existing security
problems that, in some instances, have plagued the department for many
years. Further, DOE must balance security issues and cooperative
scientific research with a variety of foreign countries.
As a result of the scope and magnitude of the September 11 attacks, DOE
and NNSA undertook a number of short-term efforts to improve security.
Immediately following the attacks, NNSA facilities instituted a
heightened state of alert in accordance with DOE orders. In conjunction
with this alert, security measures were enhanced to include additional
barriers and access controls, increased vehicle searches, and increased
patrols of perimeters and critical facilities. In addition, emergency
operations centers at DOE headquarters and the field were staffed.
Threat information on foreign intelligence activities was also
distributed to field personnel. These activities increased DOE‘s
security costs by many millions of dollars.
Figure 1: Adding Concrete Barriers That Secure an NNSA Storage Vault:
[See PDF for image]
[End of figure]
DOE and NNSA also began several long-term activities to strengthen
their overall security structure and program. Each NNSA facility was
evaluated against various criteria including the possibility of nuclear
detonation; radiological dispersion; and loss of program capability,
technical staff, and life. Also, each site was asked to identify
vulnerabilities and the projected cost of correcting them. From this
work, NNSA compiled a prioritized list of needed security improvements.
Work was also initiated to revise a key DOE security document called
the Design Basis Threat. The Design Basis Threat describes the most
credible and serious potential adversaries DOE facilities are likely to
face. Revisions to this document could have significant consequences
because it could change the security philosophy at DOE and NNSA sites.
Finally, DOE and NNSA reviewed the security and assessed the
vulnerability at each site, assessed nuclear materials management
practices, and reviewed personnel security and transportation security.
The results of these activities may, in the longer term, fundamentally
change security at DOE and NNSA sites.
All of these efforts to respond to the September 11 attacks must be
coordinated with efforts to address previously identified security
weaknesses. Over the last several years, DOE began more than 70
initiatives to improve security. In a March 2002 report we pointed out
that many initiatives have been successfully implemented.[Footnote 2]
These initiatives have eliminated the backlog of security clearance
investigations and reinvestigations, strengthened controls over cyber
security, and upgraded the counterintelligence program. However, we
also pointed out that several initiatives are still in progress and
some may take years to implement fully. In addition, during the last
couple of years, other security problems or concerns have arisen.
In the March 2002 report we pointed out, among other things, that NNSA,
which was created in March 2000 in part to improve security, still did
not have a fully operational structure. The lines of authority from
headquarters through NNSA field offices to the contractors for security
oversight had not been clearly laid out. Also, there was still some
confusion about the roles and authorities of DOE and NNSA security
offices. Some contractor and NNSA field staff told us they had received
differing guidance from DOE and from NNSA security offices and were
uncertain about which to follow. A report by the Center for Strategic
and International Studies,[Footnote 3] dated April 2002, found similar
problems and recommended that DOE/NNSA clarify lines of responsibility
and authority for security. In particular, the study wanted a more
clearly defined chain of command. In December 2002, NNSA announced its
plans for implementing a new organizational structure, which it expects
to have in place in 2004.
In the information security area, we pointed out in an August 2001
report that while DOE laboratories have taken steps to improve control
over their classified information, DOE could make further
improvements.[Footnote 4] DOE‘s requirements for documenting when
someone needs to know specific classified information lack specificity,
allowing laboratory managers wide discretion in interpretation and
implementation. Some managers provided long-term blanket approvals to
hundreds of staff for all classified information in a vault or computer
system. We also found that recent revisions to DOE‘s Classified Matter
Protection and Control Manual did not include some security
requirements that were in place prior to 1998. For example, the revised
manual did not require approving reproduction of top-secret documents
and maintaining an access list for each top-secret document.
The cyber security area is another area where DOE has initiated
upgrades, but more improvements are warranted. The previously mentioned
report by the Center for Strategic and International Studies made a
number of recommendations to DOE to improve its cyber security. These
included placing a higher priority on the timely implementation of
cyber security solutions that are already developed and doing more to
evaluate emerging technologies that are being developed by other
agencies and by the private sector. DOE‘s Inspector General pointed out
in an August 2001 report[Footnote 5] that while DOE had made
improvements in its unclassified cyber security program, the program
did not adequately protect data and information systems as required by
the Government Information Security Reform Act. It found problems in
DOE‘s contingency planning, computer incident reporting, and training.
According to the report, these weaknesses and others increased the risk
that critical systems could be compromised or disabled by malicious or
unauthorized users.
Another area of particular concern to DOE is physical security,
especially since September 11. In our aforementioned March 2002 report
we found that there was some confusion over who in DOE was responsible
for accelerating upgrades to physical security. In a December 2001
report,[Footnote 6] DOE‘s Inspector General pointed out that
improvements are needed at Lawrence Livermore National Laboratory for
the site to comply with its overall security plan, protect certain
types of nuclear material, and provide clearer guidance for site
protective-force operations. Another DOE Inspector General
report,[Footnote 7] dated March 2002, found that because of problems
with DOE‘s clearance and badging controls, an unauthorized individual
could gain access to department headquarters.
New initiatives are likely to result from ongoing security evaluations
initiated in response to the September 11 attacks. As a result,
additional improvements are likely. However, our past work has shown
that DOE has had difficulty making lasting security improvements, and
security problems have recurred. In our view, this difficulty is in
part due to DOE‘s culture, because, in some instances, there has been a
pattern of behavior where security is a secondary priority. Changing
this culture, which has developed over decades, will require sustained
management attention. Such attention will be needed to ensure that
security improvements are effectively and consistently built into DOE‘s
culture as it evolves to meet new management challenges.
Improve Management of the Nation‘s Nuclear Weapons Stockpile:
NNSA spends more than $5.5 billion per year to maintain the safety and
reliability of the nation‘s nuclear weapons stockpile through the
Stockpile Stewardship Program.[Footnote 8] NNSA was created to correct
long-standing and widely recognized management problems at DOE. NNSA
has made progress in developing a planning, programming, and budgeting
system and in clarifying its organization. However, NNSA needs to do
more to have the effective and efficient management structure necessary
for accomplishing its mission.
Numerous studies have identified problems with DOE‘s planning,
programming, and budgeting, which NNSA inherited. The problems include
the lack of a unified planning and programming process, the absence of
integrated long-range program plans, and the failure to fully link
existing plans to budgets and management controls. Without a sound,
integrated planning, programming, and budgeting process, it has been
difficult for officials to ensure that decisions with resource
implications are weighed against one another completely and
consistently. In our December 2000 report on the management of the
Stockpile Stewardship Program, we recommended that NNSA take action to
improve and integrate its planning processes and budgetary data to
provide information needed to manage this highly complex
program.[Footnote 9] Overall, DOE agreed with these recommendations.
In response to our report and recommendations, NNSA‘s Administrator
changed NNSA‘s planning, programming, and budgeting process by
instituting a process similar to that used by the Department of
Defense. The Administrator originally set a goal of having fully
established NNSA‘s version of the Department of Defense‘s process--
referred to by NNSA as the Planning, Programming, Budgeting, and
Evaluation process--by the fiscal year 2003 budget cycle. Subsequently,
this date was pushed back to the fiscal year 2004 budget cycle because
development was taking longer than expected.
As we reported in December 2001 and again in February 2002, while NNSA
has made some progress in implementing some elements of the planning
phase of the Planning, Programming, Budgeting, and Evaluation process
for the fiscal year 2004 budget cycle, work on the other phases of the
process has gone much more slowly. For example, NNSA has not finalized
how the programming and evaluation phases of the process will work.
NNSA is also just beginning to develop the automated systems needed to
support its process. In addition, except for budgeting personnel, NNSA
does not have sufficient personnel with the skills to conduct the
analytical functions typically associated with the multiple phases of
the Planning, Programming, Budgeting, and Evaluation process.
NNSA may face additional hurdles as it implements its Planning,
Programming, Budgeting, and Evaluation process for the fiscal year 2004
budget cycle. Rather than function as the fully implemented system
envisioned by the Administrator for the fiscal year 2004 cycle, NNSA‘s
Planning, Programming, Budgeting, and Evaluation process should be
considered a prototype that will likely have to be refined and
developed in future years. Furthermore, it is too soon to tell whether
the proposed process, when fully implemented, will effectively address
widely recognized problems in NNSA‘ s existing planning, programming,
and budgeting practices and whether the process will include effective
evaluation procedures.
With respect to organization, the Congress established NNSA, in part,
to correct confused lines of authority and responsibility within the
nuclear weapons complex that had contributed to a wide variety of
problems, such as cost overruns and schedule slippages. In February
2002, after several delays and almost 2 years after its creation, NNSA
announced a new organizational structure that represents a significant
step toward addressing important, long-standing organizational
problems by removing excess management layers, streamlining and
clarifying the relationship between NNSA‘s headquarters offices and its
field structure, and potentially holding federal and contractor staff
more accountable.
However, NNSA‘s reorganization is far from complete. As we noted in our
February 2002 testimony on NNSA‘s proposed plans, NNSA‘s proposal did
not address several key, long-standing organizational problems. For
example, NNSA‘s proposal did not address the fact that the nuclear
weapons science function and nuclear weapons production function are
managed separately, although their work must be closely coordinated to
achieve mission goals. As we noted in our aforementioned December 2000
report on the management of the Stockpile Stewardship Program, this
split adversely affects coordination within the nuclear weapons
complex. More recently, in December 2002, NNSA announced its plans for
implementing its new organizational structure. While NNSA‘s plans
further clarify how NNSA will implement the structure it announced in
February 2002, numerous important issues, such as how NNSA will achieve
the 20 percent federal staff reduction it promises while maintaining
effective federal oversight, remain to be resolved before September
2004, when the reorganization is to be fully implemented. As NNSA
implements its new organization, it is vital that its chains of command
are enforced and that federal and contractor staff are held
accountable. Otherwise, NNSA‘s reorganization could simply be one more
in a long line of missed opportunities. Underpinning NNSA‘s efforts to
improve the management of the Stockpile Stewardship Program is the need
to address its human capital challenges. Numerous studies have pointed
out the need to deal comprehensively with the challenge of recruiting
and training the next generation of technical and managerial staff
before the end of this decade. However, as we pointed out in our
December 2001 report on NNSA‘s implementation efforts, NNSA still
lacked a long-term strategic approach that can ensure a well-managed
workforce. While NNSA managers agreed that a strategic approach was
needed, no timetable for developing one existed because NNSA managers
were waiting for the outcome of NNSA‘s reorganization process.
Finally, because the United States is no longer designing and building
nuclear weapons, extending the life of each of the nine weapon types in
the current stockpile is a key component of the Stockpile Stewardship
Program. To fully understand the cost of these life extension projects,
the Conference Report on the Energy and Water Development Appropriation
Act for Fiscal Year 2002 (P.L. 107-66) directed NNSA to develop a
series of cost reports known as Nuclear Weapon Acquisition Reports. In
our July 2002 report we reviewed the Nuclear Weapon Acquisition Reports
and found that while they represented a good beginning, additional
information, such as the cost of associated research and development,
was needed to make them a more effective project management tool for
NNSA and the Congress.[Footnote 10] We made recommendations, which NNSA
agreed with in part, to improve the quality and usefulness of the
Nuclear Weapon Acquisition Reports.
Resolve Problems in Contract Management That Place DOE at High Risk for
Fraud, Waste, and Abuse:
DOE‘s contract management represents a significant challenge to the
department. DOE is the largest civilian contracting agency in the
federal government. About 90 percent of its annual budget is spent on
contracts. DOE relies primarily on contractors to carry out its diverse
missions and to operate its facilities. Since 1990, we have designated
DOE‘s contract management, which we have broadly defined to include
contract administration and project management, as a high-risk area; we
maintain that designation in this year‘s high-risk report. In our
January 2001 report on DOE‘s major management challenges, we reported
ongoing problems with the department‘s approach to selecting an
appropriate contract type, using competition to award contracts,
incorporating performance-based measures into contracts, and
minimizing cost and schedule overruns on major projects. Although DOE
has made progress in addressing these problems through contract
reforms, it is a long-term effort, and many challenges remain.
* With respect to selecting the appropriate contract type, we reported
in 2002 that DOE has encouraged the use of alternative contract types,
such as fixed-price contracts, that are tailored to the required work
and the financial and technical risks associated with that
work.[Footnote 11] However, the department is still in the process of
implementing a more systematic approach for determining the best
contract type for a given situation.
* Regarding efforts to increase competition, DOE has increased the
proportion of major site contracts awarded competitively to 56 percent
as of 2001, up from 38 percent as of 1996. All but one of the 11
contracts that had not been competitively awarded as of 2001 were for
managing research and development centers, including weapons
laboratories, that are exempted by statute from mandatory competition.
DOE has continued to noncompetitively extend most of these contracts,
including some for contractors that have experienced performance
problems, such as the University of California contract to manage and
operate the weapons laboratories at Los Alamos and Livermore. It is
unclear if DOE can successfully address the performance problems using
contract mechanisms.
* Regarding the use of performance-based measures in contracts, DOE has
reported that all of its major site contracts now incorporate
performance-based concepts to define requirements and measure results.
In addition, DOE has increased the emphasis on performance-based
contracting by increasing the percentage of available fee (available
payment to the contractor) tied to objective performance measures.
However, developing good performance measures has continued to be a
challenge for the department. For example, a 2001 DOE Office of
Inspector General review of performance-based incentive measures at
three sites concluded that the department did not use performance-based
measures in a way that would consistently result in improved contractor
performance.[Footnote 12] DOE acknowledges that it must make further
progress in this area.
Despite this progress in implementing contract reforms, it is unclear
whether contractors‘ performance has improved. Instead of measuring
outcome-oriented performance results, DOE has primarily gauged progress
by measuring its implementation of the contract reform initiatives and
by reviewing performance measures in individual contracts. Therefore,
objective performance information on overall results is scarce.
Nevertheless, there are indications that the performance of DOE‘s
contractors may not have improved. For example, DOE continues to have
difficulty keeping some of its major projects on schedule and within
budget. In our September 2002 report, we found that in comparing cost
and schedule performance for ongoing major DOE projects there was no
significant improvement in performance for similar projects between
1996 and 2001. In both 1996 and 2001, more than half of the projects
reviewed had both schedule delays and cost increases. Furthermore, as
shown in table 1, the proportion of projects experiencing cost growth
of more than double the initial cost estimates or schedule delays of 5
years or longer increased during the 6-year period.
Table 1: Comparison of Significant Cost Overruns and Schedule Delays
for Ongoing Projects in 2001 with Ongoing Projects in 1996:
Number of projects reviewed; Number of projects: 1996: 25[A]; Number of
projects: 1996: [Empty]; Number of projects: 2001: 16[B]; Number of
projects: 2001: [Empty].
Projects with a revised cost estimate more than double the initial cost
estimate; Number of projects: 1996: 7; Number of projects: 1996: (28%);
Number of projects: 2001: 6; Number of projects: 2001: (38%).
Projects with schedule delays of 5 years or more; Number of projects:
1996: 8; Number of projects: 1996: (32%); Number of projects: 2001: 6;
Number of projects: 2001: (38%).
Source: DOE and GAO.
[A] We evaluated 34 projects in 1996 with estimated costs greater than
$100 million. However, 9 of the projects were environmental restoration
projects, and DOE‘s original and/or current cost estimates did not
estimate costs through project completion. In 1998, DOE divided these
environmental restoration projects into multiple projects at each site.
Therefore, we excluded these projects from our current analysis.
[B] There are 10 additional projects with total project costs greater
than $200 million, but those projects either have been recently started
or have been suspended.
[End of table]
Recent cost and schedule overruns include the following:
* DOE‘s original 1992 baseline for the Yucca Mountain Site
Characterization Project, a high-level waste repository, estimated a
total project cost of $6.3 billion and a completion date for submitting
the license application of October 2001. According to the department‘s
latest estimate, the license application will not be submitted until
December 2004, with an estimated cost of almost $8.4 billion. We
reported in December 2001 that DOE had stopped using the baseline to
manage the program in March 1997 and instead had been using revised
estimates that had never been approved and incorporated into the
official baseline for the project.[Footnote 13] Without developing a
baseline cost and schedule estimate and using a formal procedure to
approve cost and schedule changes, DOE cannot ensure that the project
is being managed effectively.
* The Tritium Extraction Facility, which is being built at DOE‘s
Savannah River Site to produce a radioactive isotope crucial to the
nation‘s nuclear weapons program, was originally scheduled for
completion by February 2006 at a cost of $401 million. DOE‘s Office of
Inspector General reported in June 2002 that the total project cost
could increase to as much as $500 million, may not be completed until
almost a year later than originally scheduled and may not contain all
elements originally specified.[Footnote 14] The Inspector General found
that inadequate project management controls resulted in the lack of a
viable baseline for the project. The report added that, as a result,
the department lacks assurance that the facility will be available when
needed or that project funds are being expended efficiently. Delays in
completing the project could adversely affect the overall performance
of DOE‘s Stockpile Stewardship Program.
* The National Ignition Facility will be a stadium-sized laser facility
that may, for the first time, simulate in a laboratory the
thermonuclear conditions created in nuclear explosions. Our August 2000
report noted that DOE estimates that the facility will cost almost $3.3
billion and will not be completed until 2008--more than $1 billion and
6 years later than originally estimated.[Footnote 15] Despite efforts
by the department to make management improvements, when we revisited
the National Ignition Facility project in June 2001, we found that DOE
oversight problems persisted and that they continued to place the
project at risk.
In an effort to improve cost and schedule performance on major
projects, DOE began an initiative in 1999 to implement recommendations
in a National Research Council review[Footnote 16] on improving project
management. In October 2000, DOE issued a new policy and guidance on
managing and controlling projects, and in 2001 it established a project
tracking system that required monthly status reporting on all projects
with total costs over $5 million. DOE has also, among other things,
improved front-end planning for projects, required baseline validation
for every project with a cost over $5 million, instituted an industry
recognized management system for all projects greater than $20 million,
and developed a competency-based career ladder for project managers.
These are promising steps, which could help DOE take corrective action
on projects in a timely manner. However, improvements may be difficult
to achieve. For example, in its November 2001 follow-up assessment, the
National Research Council found that change had been inordinately slow,
and the Council found no evidence that DOE‘s project management
practice and performance in the field had actually improved.[Footnote
17]
To better ensure the effectiveness of initiatives such as contract
reform, we recommended in our September 2002 report that DOE
incorporate the best management practices common in high-performing
organizations. Such an approach would help ensure that DOE sets clearly
defined goals, establishes results-oriented outcome measures, develops
results-oriented performance data to evaluate the effectiveness of its
initiatives, and takes corrective actions as needed. DOE has agreed to
implement this recommendation.
DOE‘s ability to resolve problems with contract and project management
may also be affected by human capital concerns. In past reviews of
major DOE projects such as the National Ignition Facility and in our
January 2001 report on DOE‘s major management challenges, we have cited
inadequate oversight of contractors‘ activities as a factor in poor
performance on these projects. Furthermore, DOE faces the same human
capital challenges that exist governmentwide--an aging workforce whose
retirements over the next decade will severely deplete the knowledge
and skills required to support DOE‘s missions. DOE has efforts under
way to address skill gaps in its procurement and project management
organizations and to develop the necessary technical and managerial
expertise for adequate oversight of its contractors through training
and certification programs.
Effective contract and project management are vital for DOE because the
department relies heavily on contractors to achieve its national
security, research, and environmental cleanup missions. Over the long
term, DOE may resolve all of the challenges in its contract management
and become a more effective department. Until then, DOE‘s ongoing
challenges in contract management can increase costs and expose the
government to billions of dollars in financial risks.
Improve Management for Cleanup of DOE Radioactive and Hazardous Wastes:
DOE continues to face challenges in cleaning up the many DOE facilities
and sites that were contaminated with radioactive and hazardous wastes
during more than 50 years of nuclear weapons research and
production.[Footnote 18] Although DOE has reported completing cleanups
at 74 of its 114 sites, some of the most complex and costly cleanup
work remains to be done. For example, DOE must develop and implement
new technologies to retrieve from aging storage tanks, process, and
package millions of gallons of high-level radioactive wastes for long-
term storage or disposal. At one site alone this is expected to cost
over $50 billion.
Figure 2: Waste Storage Tank Under Construction at DOE‘s Hanford Site,
September 1947:
[See PDF for image]
[End of figure]
DOE has estimated that the total cost of cleaning up its sites will
exceed $220 billion (an increase of over $70 billion in just 4 years)
and take more than 70 years to complete.[Footnote 19] However, only
about one-third of the environmental management budget is going toward
actual cleanup activities and risk-reduction work. The remainder is
spent on maintenance, fixed costs, and other activities required to
support safety and security.
In February 2002, recognizing that since the program‘s inception in
1989 more than $60 billion has been spent without a corresponding
reduction in actual risk, DOE‘s Assistant Secretary for Environmental
Management reported the results of a ’top to bottom review“ of the
environmental management program and its management systems.[Footnote
20] The report concluded that DOE‘s financial liability under current
cleanup plans would continue to grow well beyond the estimated $220
billion if significant changes to the program were not made. The report
also stated that without higher performance standards and breakthrough
business processes, cost growth and schedule delays will continue to
obstruct cleanup, and the risk to workers, the public, and the
environment will not be reduced.
The report recommended a series of initiatives to address the problems
identified in the February 2002 review. These include developing an
accelerated, risk-based cleanup strategy; improving contract
management and establishing more meaningful performance measures for
contractors; improving project management; and streamlining business
practices. In addition, the report recommended implementing an
effective human capital strategy to increase the technical expertise of
DOE staff and improve accountability for results. Through these and
other initiatives, DOE hopes to rapidly reduce environmental risk to
workers and the public, shorten the overall cleanup time frame of 70
years by at least 30 years, and reduce overall cleanup costs by tens of
billions of dollars. DOE is in the process of developing the specific
steps to carry out these initiatives safely and is now in the process
of negotiating with its regulators at various sites to determine the
best way to implement the accelerated approach.
DOE‘s initiatives following the February 2002 review are not DOE‘s
first attempt to develop a risk-based approach to cleanup. In the past,
the Congress, GAO, and others have recommended that DOE implement such
a risk-based approach, and DOE has made several attempts to do so.
However, in our May 2002 report we noted that a 1999 study to evaluate
these efforts concluded that none of the attempts had been
successful.[Footnote 21] Past problems included poor documentation of
risks, inconsistent scoring of risks between sites, and DOE‘s failure
to integrate any of the risk-based approaches into the decision-making
process. We concluded that a major challenge for DOE in successfully
implementing its accelerated cleanup initiative is to follow through on
its plan to develop and implement a risk-based method to prioritize
various cleanup activities. DOE management leadership and resolve are
needed to overcome the barriers encountered in past attempts at
establishing a risk-based cleanup approach.
Some of the problems with the DOE‘s environmental management program
that were highlighted in the February 2002 review have also been the
subject of GAO and DOE‘s Inspector General reports during the past 2
years. For example, we reported in 2001 that to improve use of cleanup
resources, DOE would need to improve project baselines and integrate
activities among DOE sites. As we reported in January 2001, DOE has
made some progress in establishing project baselines, but has had
continuing difficulty integrating waste treatment and disposal
activities among its sites. For example, in our February 2001 report on
the progress of the closure of the Rocky Flats site, we stated that one
of the significant integration challenges was overcoming the limited
number of transportation casks available to ship huge quantities of
radioactive waste. Integrating waste treatment and disposal, as well as
consolidating nuclear materials, has taken on increased importance in
the post September 11 environment. DOE plans to improve security by
consolidating all special nuclear materials in safeguarded facilities
and accelerating disposal of transuranic waste currently stored at
numerous sites around the country.
Other examples of challenges the environmental management program faces
include managing complex cleanups, developing and deploying new
technologies, and developing meaningful performance measures. For
example, in 2001, we reported that the scheduled closure of the Rocky
Flats site by 2006 was unlikely because of technical concerns,
equipment limitations, uncertainty about contamination, and a variety
of potential safety issues. To improve the chance of achieving the
target closure date and cost, we recommended that DOE clarify the
authority for reconciling competing demands on resources and establish
a process for reconciling:
these competing demands in a timely manner. DOE agreed with and has
implemented this recommendation. In May 2001 and January 2002, DOE‘s
Inspector General found that two Ohio sites, Miamisburg and Ashtabula,
were not on schedule to meet their established closure dates because
the cleanup was more difficult than originally anticipated, and DOE
understated both time and cost to complete it.[Footnote 22] In a 2002
report, DOE‘s Inspector General noted that performance measures for the
cleanup program focused more on discrete tasks or accomplishments, such
as the number of high-level waste canisters placed in storage, than on
the overall progress in site cleanup.[Footnote 23] As a result, DOE
reported that the program was generally successful in meeting its goals
even though the cleanup program had experienced substantial cost growth
and schedule slippages. The Inspector General concluded that the lack
of adequate performance measures deprived the department of a valuable
tool that could have helped identify problems resulting in cost growth
and schedule slippages. In response to this report, DOE‘s Assistant
Secretary for Environmental Management pledged to require cleanup sites
to identify the key performance measures that will capture overall
performance. These key performance measures will be included in
integrated project baselines that will enable the sites to track cost
and schedule progress.
The task of cleaning up DOE‘s contaminated sites and facilities is a
daunting one that has a huge price tag and could take a substantial
portion of the 21ST century. DOE is in the process of changing its
business and contracting processes, as well as rethinking its cleanup
approach at many of its sites. In addition, DOE is seeking options that
will accelerate risk reduction and reduce the overall cleanup cost.
Congressional, regulator, and local community buy-in to new approaches
is essential for success. While the environmental management program
initiatives are innovative, successful results are not guaranteed.
Continued management leadership and focus will be needed to ensure that
these initiatives are implemented in a safe and cost-effective manner
that provides for the accelerated cleanup of DOE sites.
Enhance DOE Leadership in Meeting the Nation‘s Energy Needs:
Providing leadership in addressing the nation‘s energy needs represents
a major challenge for the department because a stable and reliable
energy supply is critical for consumers, the U.S. economy, and our
national security. Today, our nation‘s energy supply system is under
stress. Figure 3 shows that total U.S. energy consumption has grown
about 180 percent in the last 50 years and is expected to increase
another 32 percent between 2000 and 2020.
Figure 3: Total U.S. Energy Consumption 1950 to 2020:
[See PDF for image]
[End of figure]
In some energy markets--such as electricity, natural gas, home heating
oil, and gasoline--demand has periodically outstripped available and
reliable supply. For example, in several western states unmet
electrical demand led to price increases and rolling blackouts.
Moreover, the security of oil supplies to meet the nation‘s ever
increasing needs is at risk. More than 50 percent of U.S. petroleum is
imported, much of it from the volatile Persian Gulf region where
conflicts underscore the ease with which supplies can be disrupted.
More recently, these traditional energy supply issues have been
compounded by another threat--the vulnerability of the nation‘s
domestic energy infrastructure to terrorist attacks. The large-scale
infrastructure for oil, gas, and electricity systems makes them
difficult and expensive to protect. This concern has resonated after
September 11, adding another dimension to the challenge of providing
reliable energy supplies.
DOE is in a unique position to help ensure that the nation‘s energy
needs are met. First, because DOE is the federal agency responsible for
energy policy its leadership and direction will influence other federal
agencies and state and local activities, as well as the energy
industry. DOE‘s role is important because the U.S. government is the
nation‘s single largest energy user. Second, DOE plays a vital role in
linking federal government research and development and other
government efforts with the energy industry in the United States. This
link helps ensure that industry produces adequate energy supplies that
are reliable, safe, affordable, diverse, innovative, and
environmentally friendly. While DOE is in a unique position, it cannot
solve the problem alone. This is because DOE does not control the
economics or environmental policies that can affect the marketplace.
In the past, DOE has undertaken numerous efforts to address energy
supply problems for all sources of energy. The nation‘s current sources
of energy to meet consumption in 2001 are shown in figure 4.
Figure 4: U.S. Energy Consumption by Source, Fiscal Year 2001:
[See PDF for image]
[End of figure]
In the future, DOE intends to play a major role in fostering U.S.
energy supplies by, among other things, helping to develop a
competitive electricity generation system, reducing the vulnerability
of the U.S. economy to potential disruptions in petroleum supply (e.g.,
by fully developing the Strategic Petroleum Reserve), researching clean
coal and other fossil and renewable energy technologies to transition
away from petroleum, and making sure that the energy infrastructure
serves the needs of the public. DOE budgeted about $2.3 billion in 2002
to address this issue, and nearly one-third of all the department‘s
general performance goals relate to ’energy resources.“[Footnote 24] In
testifying on DOE‘s fiscal year 2003 budget, Secretary Abraham stated
that after September 11 our nation‘s energy security is national
security. Furthermore, he laid out new priorities for the department--
centered on an overarching mission of national security--and proposed
the largest budget in the department‘s history.
Over the past several years, in briefings, testimonies, and reports,
GAO has addressed a number of issues related to the energy supply
challenge. Much of this work points out ways for DOE to better meet its
goals and more effectively focus its budgetary resources on developing
technologies that are competitive in the marketplace. For example, in
testimony on the department‘s attempts to reduce the consumption of
petroleum in the transportation sector, we pointed out that DOE‘s
recent involvement in a $1.2 billion multiyear partnership with the
automotive industry would not develop a cost-competitive vehicle that
consumers would buy.[Footnote 25] In another instance, while DOE‘s
research and development efforts were focused at developing large-scale
wind turbines to produce electricity, we found that other companies
elsewhere in the marketplace had already fielded similar turbines.
DOE has a history of achieving technical progress in the energy area.
However, many times it does not study the energy marketplace to ensure
that the results of its efforts ultimately address the energy supply
challenge. Given the department‘s large budgetary outlays for research
and development, the importance of a reliable energy supply to the
quality of life, and the complex and evolving marketplace in which DOE
must work, this challenge will require enhanced management attention
and monitoring.
Revitalize DOE‘s Infrastructure:
DOE faces a major challenge in making the right investments to ensure
that it has world-class research and development facilities for
supporting its national security, science, environmental, and energy
missions. The department‘s physical infrastructure includes more than
50 major facilities in 35 states, encompassing thousands of structures.
Many of these facilities are in poor condition, and others are reaching
the end of their design life. For example, DOE‘s national laboratories
were built during World War II and the early Cold War. Over 60 percent
of the laboratory space is more than 30 years old, and 35 percent is
more than 40 years old. DOE has begun to receive funding from the
Congress to improve its infrastructure, and its offices are developing
plans for improvements. The cost of upgrading DOE‘s infrastructure will
exceed several billion dollars. DOE‘s challenge will be to spend this
money effectively and efficiently, in a way that is consistent with its
most important missions.
DOE‘s infrastructure problems and their effect on operations are well
known. For example, DOE noted in its 2000 Strategic Plan that the poor
condition of its facilities adversely impacts the safety, cost, and
continuity of research activities and hurts laboratories‘ ability to
attract and retain highly qualified scientists to work on important
mission needs.[Footnote 26] DOE‘s Inspector General has also reported
on the poor condition of the department‘s infrastructure, noting that
conditions are deteriorating at an ’alarming pace.“ Facilities in poor
condition are costly to maintain and difficult to keep in regulatory
compliance. In a September 2000 report, the Inspector General said that
the deteriorating conditions are causing some Nuclear Weapons Stockpile
Stewardship milestones and goals to slip, restoration costs to
increase, and future nuclear weapons production work to be at
risk.[Footnote 27]
Many factors contribute to DOE‘s infrastructure deficiencies, including
deferred maintenance. For example, the Inspector General‘s September
2000 report also noted that the department has deferred substantial
maintenance and upgrades on its nuclear weapons production facilities.
Table 2 shows the total amount of building maintenance that DOE has
deferred as of September 2002.
Table 2: Number of DOE Buildings and Estimated Deferred Maintenance as
of September 2002:
Program Office: Environmental Management; Number of Buildings: 3,176;
Average Age of Buildings: 29; Deferred Maintenance (in thousands):
$411,145.
Program Office: Fossil Energy; Number of Buildings: 430; Average Age of
Buildings: 16; Deferred Maintenance (in thousands): 479.
Program Office: National Nuclear Security Administration; Number of
Buildings: 4,101; Average Age of Buildings: 33; Deferred Maintenance
(in thousands): 782,562.
Program Office: Nuclear Energy; Number of Buildings: 293; Average Age
of Buildings: 30; Deferred Maintenance (in thousands): 8,771.
Program Office: Power Administrations; Number of Buildings: 663;
Average Age of Buildings: 28; Deferred Maintenance (in thousands): 133.
Program Office: Science; Number of Buildings: 1,740; Average Age of
Buildings: 32; Deferred Maintenance (in thousands): 580,668.
Program Office: Other; Number of Buildings: 304; Average Age of
Buildings: 34; Deferred Maintenance (in thousands): 9,758.
Program Office: Total; Number of Buildings: 10,707; Average Age of
Buildings: 31; Deferred Maintenance (in thousands): $1,793,515.
[End of table]
Source: DOE and GAO.
The Inspector General also pointed out that DOE had not implemented a
process to fully link workload, production capacity, and budget data to
nuclear weapons production facility requirements, placing at risk
current and future goals of the Stockpile Stewardship Program. Other
factors contributing to infrastructure deficiencies have been pointed
out by DOE‘s Office of Science, which reports that its unfunded backlog
of capital investment projections and deferred maintenance are due to
aging of the laboratories, changing technology and mission activities,
and insufficient capital investment and maintenance spending in the
past. For example, the department allocates about 0.7 percent of
replacement plant value for maintenance of the science laboratories, as
compared with 1.5 percent to 3 percent for industry and academia and as
suggested in guidelines from the National Research Council for federal
facilities.[Footnote 28] The Office of Science‘s April 2001 report on
laboratory infrastructure noted that inadequate maintenance could lead
to scientific mission failure, occupational health and safety risks,
lost productivity, and expensive emergency repairs.
DOE‘s deteriorating infrastructure threatens mission accomplishment
and will require substantial funding to ameliorate. DOE‘s Inspector
General reports that DOE and Department of Defense officials estimated
that $5 billion to $8 billion over current budgeted amounts will need
to be invested over the next 10 years to offset the effects of delayed
or neglected infrastructure activities in the nuclear weapons
complex.[Footnote 29] For science laboratories, DOE estimates that over
$300 million in deferred maintenance has been cataloged.
DOE recognizes the critical problems caused by the crumbling
infrastructure and is making changes. The department has various
infrastructure improvement initiatives underway, has pledged to improve
internal processes for identifying needs and linking budgets to
infrastructure requirements, and has made infrastructure needs a
special management focus. For example, in fiscal year 2001, NNSA
obtained new, increased, and direct appropriations to initiate a
Facilities and Infrastructure Recapitalization Program to address an
integrated, complex-wide priority list of maintenance and
infrastructure investment activities above the current base operating
levels supported by the much larger Readiness and Technical Base and
Facilities Program (which is nearly
25 percent of NNSA‘s budget). Funding is anticipated to be $200 million
to $500 million a year for the next 10 years. DOE‘s Office of Science
obtained $10 million in fiscal year 2002 for a new Facilities and
Infrastructure Program to eliminate and clean up excess space. However,
the seriousness of the infrastructure deficiencies, combined with
competing needs from existing and emerging missions such as homeland
security and historical weaknesses in project management, make
implementing plans for infrastructure revitalization a management
challenge for the department.
[End of section]
GAO Contacts:
Subject(s) covered in this report: Address New Security Threats and Old
Security Concerns; ; Improve Management of Maintaining the Nation‘s
Nuclear Weapons Stockpile; ; Resolve Problems in Contract Management
that Place DOE at High Risk for Fraud, Waste, and Abuse; ; Improve
Management for Cleanup of DOE Radioactive and Hazardous Wastes; ;
Revitalize DOE‘s Infrastructure through Major Investments; Contact
person: (Ms.) Gary L. Jones, Director
Natural Resources and Environment
(202) 512-3464
jonesgl1@gao.gov.
Subject(s) covered in this report: Establish DOE Leadership in Meeting
the Nation‘s Energy Needs; Contact person: Jim Wells, Director
Natural Resources and Environment
(202) 512-6877
wellsj@gao.gov.
[End of section]
Related GAO Products:
Address Security Threats and Problems:
Nuclear Security: Lessons to Be Learned from Implementing NNSA‘s
Security Enhancements. GAO-02-358. Washington D.C.: March 29, 2002.
Department of Energy: NNSA Restructuring and Progress in Implementing
Title 32. GAO-02-451T. Washington D.C.: February 26, 2002.
Nuclear Security: DOE Needs to Improve Control Over Classified
Information. GAO-01-806. Washington D.C.: August 24, 2001.
Department of Energy: Views on the Progress of the National Nuclear
Security Administration in Implementing Title 32. GAO-01-602T.
Washington D.C.: April 4, 2001.
Improve Management of the Nation‘s Nuclear Weapons Stockpile:
NNSA: Nuclear Weapon Reports Need to Be More Detailed and
Comprehensive. GAO-02-889R. Washington D.C.: July 3, 2002.
Department of Energy: NNSA Restructuring and Progress in Implementing
Title 32. GAO-02-451T. Washington D.C.: February 26, 2002.
NNSA Management: Progress in the Implementation of Title 32. GAO-02-
93R. Washington D.C.: December 12, 2001.
Nuclear Weapons: Status of Planning for Stockpile Life Extension. GAO-
02-146R. Washington D.C.: December 7, 2001.
Department of Energy: Follow-up Review of the National Ignition
Facility. GAO-01-677R. Washington D.C.: June 1, 2001.
Department of Energy: Views on the Progress of the National Nuclear
Security Administration in Implementing Title 32. GAO-01-602T.
Washington D.C.: April 4, 2001.
Nuclear Weapons: Improved Management Needed to Implement Stockpile
Stewardship Program Effectively. GAO-01-48. Washington D.C.: December
14, 2000.
Resolve Problems in Contract Management That Place DOE at High Risk For
Fraud, Waste, and Abuse:
Contract Reform: DOE Has Made Progress, but Actions Needed to Ensure
Initiatives Have Improved Results. GAO-02-798. Washington D.C.:
September 13, 2002.
Department of Energy: Contractor Litigation Costs. GAO-02-418R.
Washington D.C.: March 8, 2002.
Department of Energy: NNSA Restructuring and Progress in Implementing
Title 32. GAO-02-451T. Washington D.C.: February 26, 2002.
Nuclear Waste: Technical, Schedule, and Cost Uncertainties of the Yucca
Mountain Repository Project. GAO-02-191. Washington D.C.: December 21,
2001.
Department of Energy: Fundamental Reassessment Needed to Address Major
Mission, Structure, and Accountability Problems. GAO-02-51. Washington
D.C.: December 21, 2001.
NNSA Management: Progress in the Implementation of Title 32. GAO-02-
93R. Washington D.C.: December 12, 2001.
National Laboratories: Better Performance Reporting Could Aid Oversight
of Laboratory-Directed R&D Program. GAO-01-927. Washington D.C.:
September 28, 2001.
Department of Energy: Status of Achieving Key Outcomes and Addressing
Major Management Challenges. GAO-01-823. Washington D.C.: June 29,
2001.
Department of Energy: Follow-Up Review of the National Ignition
Facility. GAO-01-677R. Washington D.C.: June 1, 2001.
Nuclear Waste: Agreement Among Agencies Responsible for the West Valley
Site Is Critically Needed. GAO-01-314. Washington D.C.: May 11, 2001.
Department of Energy: Views on the Progress of the National Nuclear
Security Administration in Implementing Title 32. GAO-01-602T.
Washington D.C.: April 4, 2001.
Nuclear Cleanup: Progress Made at Rocky Flats, but Closure by 2006 Is
Unlikely, and Costs May Increase. GAO-01-284. Washington D.C.: February
28, 2001.
National Ignition Facility: Management and Oversight Failures Caused
Major Cost Overruns and Schedule Delays. GAO/RCED-00-271. Washington,
D.C.: August 8, 2000.
Improve Management for Cleanup of DOE Radioactive and Hazardous Wastes:
Waste Cleanup: Implications of Compliance Agreements on DOE‘s Cleanup
Program. GAO-02-852T. Washington D.C.: July 19, 2002.
Waste Cleanup: Status and Implications of DOE‘s Compliance Agreements.
GAO-02-567. Washington D.C.: May 30, 2002.
Nuclear Waste: Uncertainties About the Yucca Mountain Repository
Project. GAO-02-765T. Washington D.C.: May 23, 2002.
Nuclear Waste: Uncertainties About the Yucca Mountain Repository
Project. GAO-02-539T. Washington D.C.: March 21, 2002.
Nuclear Waste: Technical, Schedule, and Cost Uncertainties of the Yucca
Mountain Repository Project. GAO-02-191. Washington D.C.: December 21,
2001.
Department of Energy: Fundamental Reassessment Needed to Address Major
Mission, Structure, and Accountability Problems. GAO-02-51.
Washington, D.C.: December 21, 2001.
Nuclear Cleanup: DOE Should Reevaluate Waste Disposal Options Before
Building New Facilities. GAO-01-441. Washington D.C.: May 25, 2001.
Nuclear Waste: Agreement Among Agencies Responsible for the West Valley
Site Is Critically Needed. GAO-01-314. Washington D.C.: May 11, 2001.
Nuclear Cleanup: Progress Made at Rocky Flats, but Closure by 2006 Is
Unlikely, and Costs May Increase. GAO-01-284. Washington D.C.: February
28, 2001.
Enhance DOE Leadership in Meeting the Nation‘s Energy Needs:
Restructured Electricity Markets: California Market Design Enabled
Exercise of Market Power. GAO-02-828. Washington D.C.: June 21, 2002.
Energy Markets: Concerted Actions Needed by FERC to Confront Challenges
That Impede Effective Oversight. GAO-02-656. Washington D.C.: June 14,
2002.
Research and Development: Lessons Learned from Previous Research Could
Benefit Freedom Car Initiative. GAO-02-810T. Washington D.C.: June 6,
2002.
Restructured Electricity Markets: Three States‘ Experience in Adding
Generating Capacity. GAO-02-427. Washington D.C.: May 24, 2002.
California Electricity Market Options for 2001: Military Generation and
Private Backup Possibilities. GAO-01-865R. Washington D.C.: June 21,
2001.
Fossil Fuel R&D: Lessons Learned in the Clean Coal Technology Program.
GAO-01-854T. Washington D.C.: June 12, 2001.
Government Performance and Results Act: Information on Science Issues
in the Department of Energy‘s Accountability Report for Fiscal Year
1999 and Performance Plans for Fiscal Year 2000 and 2001. GAO/RCED-00-
268R. Washington D.C.: August 25, 2000.
Observations on the Department of Energy‘s Fiscal Year 1999
Accountability Report and Fiscal Year 2000/2001 Performance Plans. GAO/
RCED-00-209R. Washington D.C.: June 30, 2000.
Cooperative Research: Results of U.S.-Industry Partnership to Develop a
New Generation of Vehicles. GAO/RCED-00-81. Washington D.C.: March 30,
2000.
Energy Policy Act of 1992: Limited Progress in Acquiring Alternative
Fuel Vehicles and Reaching Fuel Goals. GAO/RCED-00-59. Washington D.C.:
February 11, 2000.
Revitalize DOE‘s Infrastructure:
Department of Energy: Observations on Using External Agencies to
Regulate Nuclear and Worker Safety in DOE‘s Science Laboratories. GAO-
02-868R. Washington D.C.: June 23, 2002.
Department of Energy: Fundamental Reassessment Needed to Address Major
Mission, Structure, and Accountability Problems. GAO-02-51. Washington
D.C.: December 21, 2001.
Department of Energy: Views on the Progress of the National Nuclear
Security Administration in Implementing Title 32. GAO-01-602T.
Washington D.C.: April 1, 2001.
Nuclear Weapons: Improved Management Needed to Implement Stockpile
Stewardship Program Effectively. GAO-01-48. Washington D.C.: December
14, 2000.
Department of Energy: Uncertainties and Management Problems Have
Hindered Cleanup at Two Nuclear Waste Sites. GAO/T-RCED-00-248.
Washington D.C.: July 12, 2000.
[End of section]
Performance and Accountability and High-Risk Series:
Major Management Challenges and Program Risks: A Governmentwide
Perspective. GAO-03-95.
Major Management Challenges and Program Risks: Department of
Agriculture. GAO-03-96.
Major Management Challenges and Program Risks: Department of Commerce.
GAO-03-97.
Major Management Challenges and Program Risks: Department of Defense.
GAO-03-98.
Major Management Challenges and Program Risks: Department of Education.
GAO-03-99.
Major Management Challenges and Program Risks: Department of Energy.
GAO-03-100.
Major Management Challenges and Program Risks: Department of Health and
Human Services. GAO-03-101.
Major Management Challenges and Program Risks: Department of Homeland
Security. GAO-03-102.
Major Management Challenges and Program Risks: Department of Housing
and Urban Development. GAO-03-103.
Major Management Challenges and Program Risks: Department of the
Interior. GAO-03-104.
Major Management Challenges and Program Risks: Department of Justice.
GAO-03-105.
Major Management Challenges and Program Risks: Department of Labor.
GAO-03-106.
Major Management Challenges and Program Risks: Department of State.
GAO-03-107.
Major Management Challenges and Program Risks: Department of
Transportation. GAO-03-108.
Major Management Challenges and Program Risks: Department of the
Treasury. GAO-03-109.
Major Management Challenges and Program Risks: Department of Veterans
Affairs. GAO-03-110.
Major Management Challenges and Program Risks: U.S. Agency for
International Development. GAO-03-111.
Major Management Challenges and Program Risks: Environmental Protection
Agency. GAO-03-112.
Major Management Challenges and Program Risks: Federal Emergency
Management Agency. GAO-03-113.
Major Management Challenges and Program Risks: National Aeronautics and
Space Administration. GAO-03-114.
Major Management Challenges and Program Risks: Office of Personnel
Management. GAO-03-115.
Major Management Challenges and Program Risks: Small Business
Administration. GAO-03-116.
Major Management Challenges and Program Risks: Social Security
Administration. GAO-03-117.
Major Management Challenges and Program Risks: U.S. Postal Service.
GAO-03-118.
High-Risk Series: An Update. GAO-03-119.
High-Risk Series: Strategic Human Capital Management. GAO-03-120.
High-Risk Series: Protecting Information Systems Supporting the Federal
Government and the Nation‘s Critical Infrastructures. GAO-03-121.
High-Risk Series: Federal Real Property. GAO-03-122.
FOOTNOTES
[1] NNSA‘s primary responsibility is to maintain the safety and
reliability of the nation‘s nuclear weapons stockpile through the
Stockpile Stewardship Program.
[2] U.S. General Accounting Office, Nuclear Security: Lessons to Be
Learned from Implementing NNSA‘s Security Enhancements, GAO-02-358
(Washington, D.C.: Mar. 29, 2002).
[3] Center for Strategic and International Studies, Science and
Security in the 21ST Century: A Report to the Secretary of Energy on
the Department of Energy Laboratories (Washington, D.C.: April 2002).
[4] U.S. General Accounting Office, Nuclear Security: DOE Needs to
Improve Control Over Classified Information, GAO-01-806 (Washington,
D.C.: Aug. 24, 2001).
[5] U.S. Department of Energy, The Department‘s Unclassified Cyber
Security Program, DOE/IG-0519 (Washington, D.C.: Aug. 30, 2001).
[6] U.S. Department of Energy, Lawrence Livermore National Laboratory
Protective Force and Special Response Team, DOE/IG-0534 (Washington,
D.C.: December 2001).
[7] U.S. Department of Energy, Personnel Security Clearances and Badge
Access Controls At Department Headquarters, DOE/IG-0548 (Washington,
D.C.: Mar. 26, 2002).
[8] NNSA is also responsible for preventing the proliferation of
weapons of mass destruction and designing, building, and maintaining
naval nuclear propulsion systems.
[9] U.S. General Accounting Office, Nuclear Weapons: Improved
Management Needed to Implement Stockpile Stewardship Program
Effectively, GAO-01-48 (Washington, D.C.: Dec. 14, 2000).
[10] U.S. General Accounting Office, NNSA: Nuclear Weapon Reports Need
to Be More Detailed and Comprehensive, GAO-02-889R (Washington, D.C.:
July 3, 2002).
[11] U.S. General Accounting Office, Contract Reform: DOE Has Made
Progress, but Actions Needed to Ensure Initiatives Have Improved
Results, GAO-02-798 (Washington, D.C.:
Sept. 13, 2002).
[12] U.S. Department of Energy, Use of Performance-Based Incentives at
Selected Departmental Sites, DOE/IG-0510 (Washington, D.C.: July 9,
2001).
[13] U.S. General Accounting Office, Nuclear Waste: Technical,
Schedule, and Cost Uncertainties of the Yucca Mountain Repository
Project, GAO-02-191 (Washington, D.C.: Dec. 21, 2001).
[14] U.S. Department of Energy, The Department of Energy‘s Tritium
Extraction Facility, DOE/IG-0560 (Washington, D.C.: June 24, 2002).
[15] U.S. General Accounting Office, National Ignition Facility:
Management and Oversight Failures Caused Major Cost Overruns and
Schedule Delays, GAO/RCED-00-271 (Washington, D.C.: Aug. 8, 2000).
[16] National Research Council, Improving Project Management in the
Department of Energy (Washington, D.C.: June 1999).
[17] National Research Council, Progress in Improving Project
Management at the Department of Energy--2001 Assessment (Washington,
D.C.: November 2001).
[18] Environmental cleanup includes addressing contaminated soil,
groundwater, and surface water, as well as treating and disposing of
hazardous and radioactive wastes.
[19] The most recent estimate of $220 billion reflects the life-cycle
costs of the cleanup program through the year 2070. DOE‘s Office of
Environmental Management is responsible for cleaning up radioactive and
hazardous wastes at DOE sites.
[20] U.S. Department of Energy, A Review of the Environmental
Management Program (Washington D.C.: Feb. 4, 2002).
[21] U.S. General Accounting Office, Waste Cleanup: Status and
Implications of DOE‘s Compliance Agreement, GAO-02-567 (Washington,
D.C.: May 30, 2002); Consortium for Risk Evaluation with Stakeholder
Participation, Peer Review of the U.S. Department of Energy‘s Use of
Risk in Its Prioritization Process, (New Brunswick, N.J.: Dec. 15,
1999).
[22] U.S. Department of Energy, Remediation and Closure of the
Miamisburg Environmental Management Project, DOE/IG-0501 (Washington,
D.C.: May 2, 2001) and U.S. Department of Energy, Remediation and
Closure of the Ashtabula Environmental Management Project, DOE/IG-0541
(Washington, D.C.: Jan. 15, 2002).
[23] U.S. Department of Energy, Environmental Management Performance
Measures, DOE/IG-0561 (Washington, D.C.: June 27, 2002).
[24] In general, the energy resources area promotes the development and
deployment of energy systems and practices that will provide current
and future generations with energy that is clean, reasonably priced,
and reliable.
[25] U.S. General Accounting Office, Research and Development: Lessons
Learned from Previous Research Could Benefit Freedom Car Initiative,
GAO-02-810T (Washington, D.C.: June 6, 2002).
[26] U.S. Department of Energy, Strategic Plan, DOE/CR-0070
(Washington, D.C.: September 2000).
[27] U.S. Department of Energy, Management of the Nuclear Weapons
Production Infrastructure, DOE/IG-0484 (Washington, D.C.: September
2000).
[28] U.S. Department of Energy, Infrastructure Frontier: A Quick Look
Survey of the Office of Science Laboratory Infrastructure (Washington,
D.C.: April 2001).
[29] U.S. Department of Energy, Management of the Nuclear Weapons
Production Infrastructure, DOE/IG-0484 (Washington, D.C.: September
2000).
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