DOE IG FINDS ‘EXCESSIVE’ PAYMENTS FOR CONTRACTOR TERM ASSIGNMENTS

The Department of Energy’s processes for contractor term assignment payments should be improved, according to a DOE Inspector General report released yesterday that noted that in a third of cases contractors received at least $230,000 in relocation payments in addition to per diem allowances. The audit report covered payments to contractor personnel on temporary assignments to support DOE program officials in Washington, D.C. In addition to what it called “allowances that appeared excessive,” it found that annual per diem amounts varied greatly between contractors from $59,556 to $81,215. The IG Office also found that a cost analysis had not been conducted to find alternatives to term assignments.

According to the report, “The Department lacked adequate guidance for administering the program in that it had not established complex-wide standards for term assignment allowances. From a managerial perspective, the requirement for cost comparisons was not enforced. In addition, actual costs were not tracked or reviewed to ensure that they were reasonable and in line with original estimates.” The IG included several recommendations, including the need to improve the assignment tracking system and conduct cost comparisons. In response to the report, management from DOE and the National Nuclear Security Administration agreed with the recommendations.