Hanford cleanup contractor CH2M HILL Plateau Remediation Company spent about $2 million more than needed on temporary office space for Recovery Act workers, according to a Department of Energy Inspector General report released Friday. CHPRC spent $29 million on modular facilities to provide work space for the 1,757 workers it took on during the Recovery Act. “We discovered that CHPRC incurred as much as $1.5 million more than necessary by purchasing unneeded modular facilities and almost $600,000 in lease costs that could have been avoided by more expediently returning leased facilities that were no longer needed,” the report states.
It adds, “We attributed the problems associated with procurement of facilities that were not used during the Recovery Act period to poor planning and estimating practices at CHPRC.” The IG recommended that DOE takes the temporary office costs into consideration when determining the allowability of costs. It also recommends DOE ensure the contractor documents alternative analyses for leased facilities, and fully justifies new facility acquisitions.
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