GAO REPORT BACKS MOVE TO STREAMLINE SUPPORT FUNCTIONS ACROSS NNSA

Efforts to streamline support functions and reduce costs across the National Nuclear Security Administration and the Department of Energy’s Office of Science received an endorsement from the Government Accountability Office yesterday, though the watchdog agency noted in a report that future consolidation and streamlining attempts could run into challenges from the contractors that manage NNSA and Science sites. The GAO noted that contractors were initially reluctant to participate in NNSA’s successful Supply Chain Management Center because they were hesitant to relinquish control over some procurement activities, and said that Science had still declined to join the effort. The NNSA, in particular, has pushed several streamlining and consolidation efforts over the last several years, including the consolidation of M&O contracts at the Y-12 National Security Complex and the Pantex Plant. “DOE spends over $5 billion dollars each year on support functions provided by M&O contractors at NNSA and Science sites,” the GAO said. “Growing federal deficits and increasingly uncertain future federal budgets have necessitated that M&O contractors evaluate areas that could be streamlined or provide cost savings in support costs at these sites, thereby maximizing funds available for the sites’ national security, research, and energy development missions.”