October 20, 2014

IG Names Cleanup and Contract Administration as Top Concerns for DOE

By ExchangeMonitor

Department of Energy Inspector General Gregory Friedman named environmental cleanup and contract administration as the top two areas of concern for DOE in a Washington Post interview published yesterday. When asked what issues have raised the most concern lately, Friedman first named cleanup. “There have been lots of problems in terms of project management and getting the job done on budget within schedule. We’ve seen a series of consistent problems there,” he told the Washington Post.

Contract administration was the second area of concern listed. “Getting the balance right in contract administration has been very difficult. It has not been easy to manage and administer very large cost-reimbursement contracts. So that’s also been a major concern of ours,” he said. “These are $1.5 billion contracts on an annualized basis. So these are huge costs that are flowing through the contracts. The government reimburses the contractor for almost all of the costs.”

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