The Government Accountability Office (GAO) urged the Department of Energy and the National Nuclear Security Administration to establish measurable goals for project management reforms, warning streamlining oversight could reduce confidence in project performance without clear success metrics.
A GAO report released Thursday examined DOE’s implementation of a March 2025 memorandum directing changes to an agency order which governs management of capital asset projects. The order applies to construction and acquisition projects exceeding $50 million, including many modernization efforts across the nuclear security enterprise.
GAO said DOE and NNSA oversee 80 active capital asset projects at 16 national laboratories and nuclear sites with an estimated total value of up to $65.5 billion. According to the government watchdog, proposed revisions to the order could affect 66 ongoing projects, as well as future construction efforts.
The proposed reforms would increase delegation of project approval authority for projects costing up to $300 million and reduce independent project reviews for projects valued between $300 million and $1 billion. Although DOE officials said revisions to the order were placed on hold as of March 2026, parts of the initiative have already been implemented, the report said. DOE’s Office of Science has delegated certain critical decision-making to national laboratory directors, while NNSA is developing guidance for modifying its independent review process.
GAO found the changes are intended to reduce administrative burdens and accelerate project execution but cautioned they may also weaken oversight. The report noted that limiting independent reviews could erode confidence in project cost estimates and delay identification of performance problems, while expanding contractor authority could increase implementation risks if not carefully monitored.
To ensure the reforms achieve their intended objectives, GAO recommended both DOE and NNSA establish specific agencywide goals, expected outcomes and performance measures to evaluate the effectiveness of the streamlined project management approach. DOE and NNSA concurred with the recommendations.