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National Nuclear Security Administration Nuclear Weapons Systems Configuration Management
"The National Nuclear Security Administration (NNSA) is responsible for maintaining a safe, secure and effective nuclear deterrent through the application of science, technology, engineering and manufacturing processes. To meet its mission, NNSA continuously assesses and evaluates each nuclear weapon system to certify its reliability and to detect and/or anticipate any potential problems that may occur as a result of aging. NNSA depends on information concerning how nuclear weapons were built to certify reliability. Given its importance, such information is controlled through a formal configuration management (CM) process. Under the CM process, the exact 'as-built' product definition of a nuclear weapon is to be established and maintained throughout its life cycle. An as-built product definition is similar to an index, in that it contains an exact list, by version, of the drawings, specifications, engineering authorizations, manufacturing records, and any other essential documents used in the development and qualification of a nuclear weapon system or component. The Office of Inspector General received multiple allegations regarding NNSA's management of CM information. The allegations related to incomplete product definitions for NNSA nuclear weapons, and ineffective management of classified nuclear weapons drawings, a situation that could lead to unauthorized changes to the drawings. In response, we initiated this audit to determine whether NNSA had maintained accurate and complete CM information for nuclear weapons and nuclear weapons components to support safe, sound and timely decisions related to these devices. […] Our review substantiated the allegations and identified instances in which NNSA had not maintained accurate and complete CM information for its nuclear weapons and components. We also identified additional concerns with the use of nuclear weapons parts and components that did not conform to specifications."
United States. Department of Energy. Office of Inspector General. Office of Audits and Inspections
2014-03
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Special Report: Department of Energy's July 2013 Cyber Security Breach
"To facilitate its administrative and operational needs, the Department of Energy maintains a substantial amount of personally identifiable information (PII). The Department's Management Information System (MIS) provides a gateway for users to access a system known as the DOE Employee Data Repository (DOEInfo) database. That system was implemented in 1994, and over time has become the central repository for information on the Department's current and former employees, dependents and contractors. Among other data elements, information stored in DOEInfo included name, address, Social Security number, date and place of birth, and banking information. In addition, Homeland Security Presidential Directive 12 badge and position sensitivity information, as well as security questions and answers necessary to request username and password resets, were stored in the database. Over the past several years, MIS has been involved in no less than three cyber security breaches. According to Department officials, neither of the first two incidents, one in May 2011, and the second in January 2012, appeared to result in the loss of personal information. In July 2013, however, hackers exploited a software vulnerability to gain access to MIS and exfiltrated personal information from DOEInfo. Because of the importance of ensuring the security of the Department's systems and sensitive information and at the request of the Chief Information Officer, we commenced a special review into the circumstances surrounding the MIS/DOEInfo breach. During our review, we conducted more than 35 interviews with Federal officials and contractor personnel from most of the Department's programs and staff offices. We also reviewed supporting information pertinent to MIS and DOEInfo and the events surrounding the breach."
United States. Department of Energy. Office of Inspector General. Office of Audits and Inspections
2013-12
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Audit Report: Management of Tritium within the National Nuclear Security Administration
"The National Nuclear Security Administration (NNSA) is responsible for producing tritium, a key component necessary for maintaining the Nation's nuclear weapons stockpile. NNSA's nuclear weapons Readiness Campaign coordinates with the Department of Defense to determine stockpile requirements and provide annual updates on tritium production and inventory status. The Tritium Readiness subprogram provides the capability for producing tritium needed for the Nation's nuclear weapons mission. Currently, the only new source for tritium is to irradiate tritium-producing burnable absorber rods (TPBARs) in one or more nuclear power reactors operated by the Tennessee Valley Authority (TVA). After completion of the 18-month reactor cycle, the TPBARs are removed from the reactor and cooled for approximately 6 months prior to shipment to the Savannah River Site where the tritium is extracted at the Tritium Extraction Facility and added to inventory. Considering the importance of tritium for the nuclear weapons mission, we initiated this audit to determine whether NNSA was effectively managing tritium supplies to meet nuclear weapons needs."
United States. Department of Energy. Office of Inspector General. Office of Audits and Inspections
2013-11
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Special Inquiry Report: Review of Allegations Regarding Prohibited Personnel Practices at the Bonneville Power Administration
"The Department of Energy's Bonneville Power Administration (Bonneville) is a self-funding entity that covers its costs by marketing wholesale electrical power from 31 Federal hydro projects. It is responsible for operating and maintaining about three-fourths of the high-voltage transmission in the Pacific Northwest. Bonneville's 3,100 employees represent 20 percent of the Department's total Federal workforce. […] The Office of Inspector General received a complaint alleging prohibited personnel practices at Bonneville. The allegations included violations of OPM [U.S. Office of Personnel Management] regulations and the inappropriate dismissal of veterans during their probationary period. The complaint also alleged violations of Department policies regarding the application of veterans' preference and the use of the category rating process in the exercise of Bonneville's delegated examining authority for competitive hiring. Given the seriousness of the complaint, we initiated a special inquiry to determine the facts and circumstances surrounding the allegations of prohibited personnel practices."
United States. Department of Energy. Office of Inspector General. Office of Audits and Inspections
2013-10
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Unclassified Foreign National Visits and Assignments at Oak Ridge National Laboratory
"During calendar year 2012, the Oak Ridge National Laboratory (Oak Ridge), which is managed by UT-Battelle, LLC, hosted approximately 6,400 foreign national visitors and assignees (foreign nationals). Such visits and assignments can be beneficial to the Department but may also create certain security risks. Our inspection revealed that improvements are needed in the implementation of the Department's Foreign National Visits and Assignments Program at Oak Ridge. We determined that contrary to Host Agreements and individual security plans, hosts did not always maintain accountability of foreign nationals as required. In addition, we found that Oak Ridge Office of Counterintelligence officials did not ensure that required Counterintelligence consultations had been documented and completed in the Department's Foreign Access Central Tracking System (FACTS) for foreign nationals prior to their visits. Although we did not identify any instances in which export information or other scientific information was inappropriately obtained by a foreign national, the risk that these events could occur is higher than acceptable because of the weaknesses in Oak Ridge's program. We also found that the Oak Ridge Host Audit Program, which provided management oversight of the Foreign National Visits and Assignments program, had also not been effectively implemented. The Oak Ridge Site Office concurred with the report recommendations and identified actions it had planned or had already taken to address our recommendations. We consider management's comments responsive to our recommendations."
United States. Department of Energy. Office of Inspector General. Office of Audits and Inspections; United States. Department of Justice. Office of the Inspector General; United States. Department of Energy
2013-09
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Examination Report: Alamo Area Council of Governments �' Weatherization Assistance Program Funds Provided by the American Recovery and Reinvestment Act of 2009
"The attached report presents the results of an examination of the Alamo Area Council of Governments (Alamo) Weatherization Assistance Program (Weatherization Program) under the American Recovery and Reinvestment Act of 2009 (Recovery Act). The Office of Inspector General contracted with an independent certified public accounting firm, Lani Eko & Company, CPAs, PLLC (Lani Eko), to express an opinion on Alamo's compliance with Federal and state laws, regulations and program guidelines applicable to the Weatherization Program. Alamo is a sub-recipient of the Department of Energy's (Department) Recovery Act Weatherization Program funding for the State of Texas."
United States. Department of Energy. Office of Inspector General. Office of Audits and Inspections
2013-09
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Audit Report: Department of Energy Quality Assurance: Design Control for the Waste Treatment and Immobilization Plant at the Hanford Site
"The Department of Energy is constructing the $12.2 billion Waste Treatment and Immobilization Plant (WTP) to vitrify approximately 56 million gallons of radioactive and chemically hazardous waste stored at the Hanford Site. To ensure the vitrification process is safe for workers, the public and the environment, the Department required the contractor for the WTP, Bechtel National Inc. (Bechtel), to develop and follow a quality assurance program based on the American Society of Mechanical Engineer's 'Quality Assurance Requirements for Nuclear Facility Applications' (NQA- 1) Standard. […] The Office of Inspector General received an allegation that Bechtel was missing design control documentation for the WTP and as such, could not demonstrate that equipment was appropriately manufactured. In response, we initiated an audit to determine whether design changes were approved and documented."
United States. Department of Energy. Office of Inspector General. Office of Audits and Inspections
2013-09
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Inspection Report: Accountability and Control of Explosives at Lawrence Livermore National Laboratory's High Explosives Applications Facility
"The High Explosives Applications Facility (HEAF) is a state-of-the-art explosives research facility located on-site at the Lawrence Livermore National Laboratory (Livermore). Livermore is managed and operated by Lawrence Livermore National Security, LLC, for the National Nuclear Security Administration, and the Livermore Field Office is responsible for administering the contract. The HEAF became operational in 1990 and was designed specifically to safely integrate the operations of synthesis, formulation, and explosives testing in a single, synergistic facility. The explosive operations area is confined to the lower level of the 3-story building and has 56 individual explosive workrooms, 7 fully contained explosive firing chambers, and an indoor explosive storage magazine vault. The workrooms have an explosive storage capacity that ranges from a few grams to a maximum of 10 kilograms (22 pounds). The Office of Inspector General received a complaint alleging weaknesses with the controls over physical access to explosive material, as well as weaknesses with explosive inventory control and accountability in the HEAF explosive operations area. We initiated this inspection to determine the facts and circumstances surrounding the allegations."
United States. Department of Energy. Office of Inspector General. Office of Audits and Inspections
2013-09
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Audit Report: Resumption of Criticality Experiments Facility Operations at the Nevada National Security Site
"The mission of the Criticality Experiments Facility, located at the Los Alamos National Laboratory (Los Alamos) was to conduct nuclear criticality experiments and hands-on training in nuclear safeguards, criticality safety and emergency response in support of the National Criticality Safety Program. Citing safety and security concerns, in 2004 the National Nuclear Security Administration (NNSA) halted criticality experiments at Los Alamos and authorized a capital project to transfer this capability to the Device Assembly Facility at the Nevada National Security Site (Nevada). The Nevada Field Office provided oversight of the project, which was managed through a joint contractor project team composed of Los Alamos, Lawrence Livermore National Laboratory (Livermore), National Security Technology, LLC (NSTec) and Wackenhut Services International. NSTec was responsible for maintaining the infrastructure and safety basis documentation needed to operate the facility. Safety basis documentation describes the facility and the controls needed to ensure safe operations. The project remodeled a portion of the Device Assembly Facility to form the National Criticality Experiments Research Center (NCERC). Four criticality machines, named Godiva, Planet, Comet and Flat-Top, were transferred from Los Alamos to NCERC as part of this project. The Project Execution Plan listed a target date of May 2010, for approval of start-up of the new facility. Because of the importance of maintaining the criticality safety program, we initiated this audit to determine whether NNSA had safely restored the criticality experiment capabilities transferred from Los Alamos to NCERC as planned."
United States. Department of Energy. Office of Inspector General. Office of Audits and Inspections
2013-09
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Audit Report: DOE/IG-0893: Follow-up Audit of the Department of Energy's Financial Assistance for Integrated Biorefinery Projects
"The Department of Energy's Bioenergy Technologies Office (Program) supports the development of biomass resources into commercially viable biofuels, bioproducts and biopower. The Program provides financial assistance for integrated biorefinery projects to assist in building and operating facilities at each scale of development: pilot, demonstration and commercial. The 'Energy Policy Act of 2005' (EPAct) directed the Department to carry out a program to demonstrate the commercial application of integrated biorefineries. Subsequently, the 'Energy Independence and Security Act of 2007' established additional goals involving advanced biofuel production. […] In our prior audit, 'Financial Assistance for Biomass-to-Ethanol Projects' (DOE/IG-0513, July 2001), we reported that the Department had not met its goal to build a full-scale commercial biomass production facility by the year 2000, and provided recommendations for improving Program performance. Management concurred with the recommendations, and agreed to examine its policies and practices relative to the award, monitoring and termination of financial assistance. Due to the importance of the Program, we initiated this audit to determine whether the Department was meeting its integrated biorefinery performance goals."
United States. Department of Energy. Office of Inspector General. Office of Audits and Inspections
2013-09
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Audit Report: OAS-L-13-13: Sandia National Laboratories' Readiness in Technical Base and Facilities Program
"The Department of Energy's (Department) Sandia National Laboratories (Sandia) is a Government-owned, contractor operated Laboratory that is part of the National Nuclear Security Administration's (NNSA) nuclear weapons complex. One of Sandia's key missions is to ensure the safety, reliability and performance of the Nation's nuclear weapons stockpile. To accomplish this mission, Sandia provides research, development, and testing services, and manufactures specialized non-nuclear products and components. Through NNSA's Readiness in Technical Base and Facilities (RTBF) Program, Sandia maintains facilities and infrastructure equipped with advanced scientific and technical tools to support NNSA's operational and mission requirements. NNSA's Sandia Field Office is responsible for overseeing Sandia's operations. A key aspect of Sandia's RTBF is the Operations of Facilities Subprogram (Subprogram), which provides support to 31 of Sandia's 41 mission critical facilities. Funding for the Subprogram, which totaled $139.3 million of Sandia's $165.5 million Fiscal Year 2013 RTBF budget, is intended to sustain specific nuclear weapons' Mission Critical Capabilities (Capabilities) essential to performing national security missions in a readiness state to execute missions, such as the nuclear weapons Life Extension Programs (LEPs). The Subprogram budget also supports nuclear weapons programmatic infrastructure requirements such as general plant projects and capital equipment. Given the importance of Sandia's mission critical facilities and infrastructure to nuclear weapons work, we initiated this audit to determine whether Sandia's RTBF Subprogram was effectively supporting LEP mission needs."
United States. Department of Energy. Office of Inspector General. Office of Audits and Inspections
2013-09
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Audit Report: OAS-M-13-07: The Department of Energy's Management of Contractor Responsibility Determinations
"We determined that Headquarters Procurement and Albuquerque Procurement did have processes and procedures in place to restrict contracts awards to entities with tax delinquencies and those deemed non-responsible. However, we identified opportunities where these processes and procedures could be improved. Specifically, we identified instances in which required offeror representations and certifications were either not completed or were not up-to-date at the time of contract award. In addition, important procurement documentation used in determining a bidder's responsibility was not always included in the official contract files, as required by Department policies and procedures. The problems we identified occurred, in part, because Headquarters Procurement and Albuquerque Procurement management did not ensure that procurement personnel consistently implemented controls designed to determine whether a contractor was responsible. In addition, management did not always ensure that the official contract files were properly maintained. To their credit, Headquarters Procurement and Albuquerque Procurement indicated that corrective measures have been taken as a result of our audit. Headquarters Procurement has proposed an automated check and balance system within the Strategic Integrated Procurement Enterprise System (STRIPES) to ensure that documentation supporting a responsibility determination is included in the official contract file. Additionally, Albuquerque Procurement indicated that their Con Write system has been reprogrammed to return a fatal error when a contractor is on the federal debt or debarred list. According to the Department's Acquisition Guide, affirmative responsibility determinations are an important part of safeguarding agency interests by ensuring awards are made to responsible contractors and taxpayer dollars are used in an effective manner."
United States. Department of Energy. Office of Inspector General. Office of Audits and Inspections
2013-09
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Audit Report: Fiscal Year 2011 Work Performed Under the Work for Others Program at Sandia National Laboratories
"The attached report presents the results of the audit of Sandia National Laboratories' (Sandia) Fiscal Year (FY) 2011 Work for Others (WFO) Program. The Office of Inspector General contracted with an independent certified public accounting firm, KPMG, LLP (KPMG), to assess the internal control structure at Sandia and determine whether it is effective in achieving the current goals and objectives of the WFO Program. The Department of Energy (Department) and its semi-autonomous National Nuclear Security Administration (NNSA) provide research and technical assistance to other Federal agencies on a reimbursable, full cost recovery basis through the WFO Program. WFO agreements are also used as a mechanism through which industry can utilize expertise and facilities at Sandia, a Federally Funded Research and Development Center. Entities may sponsor Sandia scientists to conduct research in a specific area if researchers can be identified with appropriate and unique capabilities, as well as interest and availability. For FYs 2009 to 2011, Sandia's WFO activities comprised between 33 and 39 percent of its annual funding. Specifically, WFO funding was $894.6 million in FY 2009, $925.4 million in FY 2010 and $790.8 million in FY 2011. However, these figures do not include classified WFO projects, which were not included in the scope of this audit."
United States. Department of Energy. Office of Inspector General. Office of Audits and Inspections
2013-09
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Audit Report: The Department of Energy's Hydrogen and Fuel Cells Program
"The Department of Energy spent approximately $1 billion over the last 5 years on Hydrogen and Fuel Cells Program activities implemented through various projects at Federal laboratories, universities, non-profit institutions, Government agencies and industry participants. The Department also provided an additional $42 million in American Recovery and Reinvestment Act of 2009 funding to accelerate the commercialization and deployment of fuel cells. As of April 2013, there were nearly 300 ongoing projects funded at the national laboratories and managed through financial assistance awards such as grants and cooperative agreements. The Hydrogen and Fuel Cells Program within the Office of Energy Efficiency and Renewable Energy (EERE) coordinates the Department's efforts across four Program Offices -- EERE, Science, Nuclear Energy and Fossil Energy -- to promote the widespread use of hydrogen and fuel cells, the stated purpose being to help build a competitive, secure and sustainable clean energy economy. The Office of Inspector General has consistently viewed financial assistance award management as one of the Department's key management challenges. Based on this focus and due to its significant investment in the Program, we initiated this audit to evaluate the Department's management of the Hydrogen and Fuel Cells Program."
United States. Department of Energy. Office of Inspector General. Office of Audits and Inspections
2013-09
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Audit Report: The Department of Energy's Energy Innovation Hubs
"The Department of Energy's (Department) Energy Innovation Hubs (Hubs) initiative addresses research challenges with potentially high impact on our national energy security. […] The balance of these activities differs from one Hub to the next, depending on technology readiness. The Hubs are composed of highly collaborative teams integrating expertise in multiple scientific disciplines, engineering fields and technology areas. Each Hub is expected to become a world-leading research and development center in its topical area by bringing together top talent across the full spectrum of research and development performers, including universities, private industry, non-profits and Government laboratories. […] The Department has committed to investing a total of $606 million in the Hubs. Since FY 2010, Congress has appropriated a total of $226.9 million to the Hubs. The Department requested $136 million for FY 2013 to operate five Hubs and add another Hub on electricity systems. Due to the significant level of funding, we initiated this audit to determine whether the Department was effectively managing its Hubs program. Our work focused on the three Hubs established at the time of our review."
United States. Department of Energy. Office of Inspector General. Office of Audits and Inspections
2013-09
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Audit Report: The Radioactive Liquid Waste Treatment Facility Replacement Project at Los Alamos National Laboratory
"The Department of Energy's Los Alamos National Laboratory (Los Alamos) is a Government-owned, contractor operated Laboratory that is part of the National Nuclear Security Administration's (NNSA) nuclear weapons complex. Los Alamos' primary responsibility is to ensure the safety, security and reliability of the nation's nuclear stockpile. To meet its mission, Los Alamos stores, treats and disposes of low-level waste and transuranic liquid waste (TRU) at the Radioactive Liquid Waste Treatment Facility (RLWTF). The facility has been in operation since 1963. In nearly 50 years of operations, the facility's systems have degraded and, on multiple occasions, failed, leaving Los Alamos with no method of processing radioactive liquid waste while the necessary repairs were made. Los Alamos officials have stated that, over time, facility systems are expected to fail again, limiting the Laboratory's ability to meet mission requirements."
United States. Department of Energy. Office of Inspector General. Office of Audits and Inspections
2013-09
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Audit Report: The Department of Energy's Appliance and Equipment Standards Program
"In 2010, the Department established the Office of Enforcement, within the Office of General Counsel, to enforce manufacturers' compliance with minimum standards and certification requirements. The Department can take enforcement actions and assess civil penalties against a manufacturer if a product is not properly certified and/or fails to meet minimum standards. Since 2010, the Office of Enforcement has collected $5.6 million in penalties from manufacturers for noncompliance with minimum standards and certification requirements. Given the significance of the Standards Program on energy savings, we initiated this audit to determine whether the Department was effectively managing its responsibilities related to the minimum standards. […] Opportunities exist for improving the Department's administration of the Standards Program. Specifically, we found that the Department had not always ensured that manufacturers provided required certifications that products met the minimum standards or had complied with the annual re-certification requirement. Additionally, the Department had not documented its oversight of the contractor-prepared Manufacturer Impact Analysis, a key component used to set the minimum standards. Finally, although the Department had met the deadlines established in the consent decree, the Department had fallen behind schedule in meeting legislative deadlines for establishing rulemakings for test procedures and minimum standards."
United States. Department of Energy. Office of Inspector General. Office of Audits and Inspections
2013-08
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Audit Report: OAS-M-13-03: Cost Transfers at the Department's Sodium Bearing Waste Treatment Facility Construction Project
"The Department of Energy (Department) awarded the Idaho Cleanup Project contract to CH2M WG Idaho, LLC (CWI) in 2005. The contract scope primarily included environmental cleanup at Idaho National Laboratory, and also included the construction of the Sodium Bearing Waste Treatment Facility. The primary mission of this facility was to treat approximately 900,000 gallons of radioactive liquid sodium bearing waste. This facility had a Federal baseline construction cost of $461 million and was approved in December 2006, with a planned start of operations in July 2010. The facility was to treat the liquid waste for ultimate disposal at the Waste Isolation Pilot Plant. It was also to be designed to treat high-level radioactive waste, referred to as calcine waste, at an unspecified future point in time. Due to significant cost escalations, the Department revised the Federal project baseline to increase the total cost to $571 million with a completion date of August 2011. To minimize project costs charged to the line item project account, CWI reviewed its costs incurred on the project to determine whether the costs were appropriate. CWI identified a number of costs that it concluded were not directly attributable to the facility and ultimately decided to transfer approximately $13.1 million in costs for seven items to other operations accounts within the contract, reducing the amount charged to the line item project. The funding determinations for these cost transfers were made between April and November 2010. To ensure the cost transfers were in compliance with the Federal Acquisition Regulation (FAR), Cost Accounting Standards, Department Orders, and internal procedures, CWI had the transfers reviewed by an external legal team, Internal Audit and corporate managers, all of whom concurred with the transfers. In January 2011, the Energy Systems Acquisition Advisory Board agreed to make further changes to the project, and extended the estimated project completion date to December 2011, but kept the approved total project cost for the facility at $571 million. At that time, the Advisory Board stipulated that the Office of Environmental Management and the Office of Acquisition and Project Management1 would review the cost transfers. Upon review, the Office of Environmental Management considered the issue closed based on the Idaho Operation Office's conclusion that the cost transfers did not violate any laws, regulations or applicable accounting standards. However, the Office of Acquisition and Project Management questioned the appropriateness of the cost transfers stating that the transfers were contrary to project management best practices. The Office of the Chief Financial Officer then determined that an independent audit should be performed to determine whether the costs should have remained within the project based on the original project baseline established at Critical Decision 2, Approve Performance Baseline. Subsequently, the Department requested that the Office of Inspector General determine whether the transferred costs were direct project costs that should have remained with the project."
United States. Department of Energy. Office of Inspector General. Office of Audits and Inspections
2013-08
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Audit Report: OAS-M-13-06: Lawrence Livermore National Laboratory's Use of Time and Materials Subcontracts
"The objective of this audit was to determine if Lawrence Livermore National Laboratory (Livermore) procured services through time and materials subcontracts in the most effective and efficient manner. […] This review was performed between July 2012 and July 2013, at Livermore and the Livermore Field Office, located in Livermore, California. […] Our methodology aimed to identify subcontracts and associated subcontract modifications that were likely to represent time and materials subcontracts awarded to companies likely to perform services similar to what employees could provide at Livermore. To accomplish the audit objective, we: 1) Identified a population of subcontract modifications dated between Fiscal Years 2008 through 2012, with a dollar amount between $250,000 and $750,000, and with two or more subcontract modifications. This resulted in 24 subcontracts, from which we judgmentally selected 12 for detailed testing and analysis. Because our selection was a judgmental sample, results and overall conclusions are limited to the items tested and cannot be projected to the entire subcontract population subject to audit. 2) Compared subcontract labor costs to similar Livermore employee costs. 3) Analyzed documentation contained in the sampled Livermore subcontract files. 4) Reviewed Livermore procurement policies and procedures including its indirect cost distribution model. 5) Held discussions with Department of Energy (Department) and Livermore officials regarding price analyses and sole source justifications. 6) Interviewed subcontractor personnel regarding prior subcontract procedures and policy."
United States. Department of Energy. Office of Inspector General. Office of Audits and Inspections
2013-08
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Audit Report: The Department of Energy's Administration of Energy Savings Performance Contract Biomass Projects
"Currently, biomass is the single largest source of renewable energy in the United States. Biomass technologies convert fuels developed from various feed stocks to heat and/or electricity and can be used in place of fossil fuels in most energy applications, such as steam boilers, water heaters, generators and gas turbines. Biomass fuels include all plant and plant-derived (organic) materials that are available on a renewable or recurring basis, including sources from agriculture, forestry, mill residues, urban waste, landfill gases and dedicated energy crops. Energy Savings Performance Contract (ESPC) financing mechanisms can help Federal agencies develop and finance biomass projects to take advantage of local biomass resources while reducing energy costs and achieving Federal renewable energy goals. Under an ESPC, a private-sector energy services company develops, finances and installs energy improvement projects, such as a biomass project, on a Federal site in exchange for a share of future savings over the contract term. In 2012, to help achieve renewable energy goals and realize energy cost savings, the Department of Energy began operating two new biomass facilities located at its Oak Ridge National Laboratory (Oak Ridge) and the Savannah River Site. The $65 million Oak Ridge Biomass Gasification Steam Plant replaced four of the Laboratory's six natural gas boilers, and will be supplemented by the remaining two gas boilers to provide steam for the Laboratory's thermal needs. The new $164 million Biomass Cogeneration Facility at the Savannah River Site replaced a 1950s era coal plant, and was designed to provide enough steam capacity to satisfy the Site's thermal requirements and a significant portion of the electrical demand. Because of the renewable benefits of biomass and the costs associated with ESPCs, we initiated this audit to determine if the Department is effectively and efficiently administering its ESPC-financed biomass projects."
United States. Department of Energy. Office of Inspector General. Office of Audits and Inspections
2013-08
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Audit Report: Kansas City Responsive Infrastructure Manufacturing and Sourcing Program
"The Kansas City Plant, managed and operated by Honeywell Federal Manufacturing & Technologies, LLC (Honeywell), is the Department of Energy's (Department) National Nuclear Security Administration's (NNSA) primary production site for non-nuclear weapon products. [...] As part of the Kansas City Responsive Infrastructure Manufacturing and Sourcing (KCRIMS) Program, Honeywell is in the process of relocating the Plant operations at the Bannister Federal Complex in Kansas City, Missouri to the newly constructed National Security Campus, located about seven miles away. The move to the Campus will reduce the Plant facility footprint from approximately 3.1 million square feet to approximately 1.24 million square feet. During and after the Plant relocation, production shutdowns are required. Additionally, some manufacturing processes and parts will have to be requalified at the Campus before the Plant can use the parts or deliver the parts to other NNSA sites. Requalification includes evaluating component production and testing of processes to ensure that quality, safety and security standards are met. During production shutdowns and the subsequent requalification periods, the Plant must meet other NNSA sites' scheduled demand for components. Given the importance of the Plant's role in satisfying Directed Stockpile Work requirements, we focused our audit on determining whether the Plant had taken adequate actions to ensure that non-nuclear components required to maintain the enduring stockpile systems are produced without delay or interruption during and after the relocation to the new manufacturing facility."
United States. Department of Energy. Office of Inspector General. Office of Audits and Inspections
2013-08
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Audit Report: Modular Office Facilities for Recovery Act Program Activities at the Hanford Site
"The Department of Energy's Richland Operations Office (Richland) awarded a contract, effective October 1, 2008, to CH2M HILL Plateau Remediation Company (CHPRC) to remediate select portions of the Hanford Site's Central Plateau. As part of the American Recovery and Reinvestment Act of 2009 (Recovery Act), Richland designated $1.3 billion of Recovery Act funding to the Plateau Remediation Contract to accelerate CHPRC's work scope from April 2009 through September 2011. Due to the influx of Recovery Act funding in 2009 and the accelerated schedule, CHPRC hired an additional 1,757 employees, including subcontractors. To provide office space for these temporary employees, CHPRC procured a total of 176 modular facilities consisting of 114 purchased and 62 leased facilities. Modular facilities ranged from single-wide to five-wide modular structures and included space designated for work stations, lunch areas, lockers, showers and conference rooms. These facilities were acquired at an approximate total cost of $29 million. This cost included the purchase price of structures, set up costs, and related costs such as constructing sidewalks, parking lots and lighting. The Office of Inspector General received an allegation that a number of the facilities CHPRC purchased with Recovery Act funds were either never used or were underutilized. Accordingly, we initiated this audit to determine if modular facilities purchased with Recovery Act funding were fully utilized for Recovery Act mission activities."
United States. Department of Energy. Office of Inspector General. Office of Audits and Inspections
2013-07
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Follow-up Inspection on Characterization Wells at Los Alamos National Laboratory
"Since the early 1940s, the Los Alamos National Laboratory (Los Alamos) has conducted experimental research on the development of nuclear weapons and explosive materials. These activities have resulted in the generation and disposal of a variety of hazardous, radioactive, and solid wastes. Los Alamos has disposed of these wastes in septic systems, pits, surface impoundments, trenches, shafts, landfills, and waste piles at the facility. Contaminants such as plutonium, americium, and tritium have been detected in soils and sediments at the facility and in groundwater beneath the facility. In 1998, Los Alamos developed a workplan that established the basis for characterizing the hydrogeologic system beneath the facility and determining whether the concentration of contaminants in groundwater exceeded regulatory limits. Implementation of the workplan required the installation of 32 regional aquifer wells, commonly referred to as characterization wells. In our September 2005 report on 'Characterization Wells at Los Alamos National Laboratory' (DOE/IG-0703), we noted that the use of mud rotary drilling methods during well construction was contrary to specific constraints established in 'Resource Conservation and Recovery Act' guidance. We also noted that muds and other drilling fluids that remained in certain wells after construction created a chemical environment that could mask the presence of radionuclide contamination and compromise the reliability of groundwater contamination data. Considering the results of our prior inspection, we initiated this review to determine if Los Alamos had taken action to improve its characterization well process."
United States. Department of Energy. Office of Inspector General. Office of Audits and Inspections
2013-07
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Audit Report: Safety Aspects of Wet Storage of Spent Nuclear Fuel
From the Department of Energy webpage: "The Department of Energy (Department) is responsible for managing and storing spent nuclear fuel (SNF) generated by weapons and research programs and recovered through nonproliferation programs. The SNF consists of irradiated reactor fuel and cut up assemblies containing uranium, thorium and/or plutonium. The Department stores 34 metric tons of heavy metal SNF primarily in two wet storage basins located at the Savannah River Site and the Idaho National Laboratory. Wet storage requires operational vigilance and reliance on mechanical systems to ensure the safety of workers, the public and the environment. The risk associated with long-term wet storage of SNF is well-demonstrated by the recent disaster in Japan. While not subject to damage from tsunamis, environmental or mechanical issues are within the realm of possible damage scenarios faced by the Department's SNF storage facilities. Because it lacks a clear disposition path, the Department had not developed definitive plans to dispose of its SNF. In Fiscal Year 2010, the Department withdrew its intent to develop a geological repository at Yucca Mountain, Nevada to dispose of SNF and high-level waste. Then in 2011, the Department deferred processing aluminum-clad SNF, some of which is in wet storage, until recommendations of the Blue Ribbon Commission on America's Nuclear Future were issued and evaluated. As a consequence, the Department determined it must maintain interim SNF wet storage facilities longer than planned and until disposition options become available. Given the lack of disposition paths, the Department is taking steps to manage the safety of its SNF wet storage basins, namely L-Basin and CPP-666. Our review revealed that, as required by both Federal and Department regulations, program officials had analyzed the risks related to storage, documented these analyses, and concluded that the continued use of the wet storage facilities was appropriate. While the Savannah River Site has initiated activities designed to support the prolonged storage of SNF in L-Basin, completion of these activities is being deferred due to funding constraints."
United States. Department of Energy. Office of Inspector General. Office of Audits and Inspections
2013-07
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Inspection Report: Follow-up Inspection on Material Control and Accountability at Los Alamos National Laboratory
"The Department of Energy's (Department) Los Alamos National Laboratory (Los Alamos) is managed and operated under contract by Los Alamos National Security, LLC, for the National Nuclear Security Administration (NNSA). The Los Alamos Field Office is the Federal entity responsible for administering the contract. This contract requires Los Alamos to follow the contractually specified directives on Material Control and Accountability (MC&A) when maintaining certain nuclear materials in support of the Nation's nuclear weapons stockpile program. Examples of these materials include plutonium and enriched uranium, which are then subdivided into four categories of accountable nuclear material. Categories I and II materials are the most attractive for theft or diversion and include pits or other pure products containing significant quantities of nuclear material. Categories III and IV items are less attractive for theft or diversion because they contain smaller quantities of nuclear material. MC&A is part of the Department's safeguards program designed to establish and track nuclear material inventories, control access to nuclear materials and detect the loss or diversion of nuclear materials. Los Alamos tracks, manages and controls nuclear materials in 64 Material Balance Areas (MBAs). Our September 2007 report on 'Material Control and Accountability at Los Alamos National Laboratory', (DOE/IG-0774) identified weaknesses regarding the control and accountability of nuclear materials. Management committed to implementing the report recommendations and to taking appropriate corrective actions. We initiated this inspection to determine if Los Alamos implemented the planned corrective actions intended to improve the policies and procedures for inventory, transfers, characteristics and locations of nuclear materials related to the MC&A Program."
United States. Department of Energy. Office of Inspector General. Office of Audits and Inspections
2013-07
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Examination Report: Commonwealth of Puerto Rico Energy Affairs Administration - Energy Efficiency and Conservation Block Grant Program Funds Provided by the American Recovery and Reinvestment Act of 2009
From the Department of Energy webpage: "As part of the American Recovery and Reinvestment Act of 2009 (Recovery Act), the Energy Efficiency and Conservation Block Grant (EECBG) Program received $3.2 billion to develop, promote, implement and manage energy efficiency and conservation projects and programs designed to reduce fossil fuel emissions, reduce total energy use of the eligible entities, and improve energy efficiency in the transportation, building and other appropriate sectors. Commonwealth of Puerto Rico Energy Affairs Administration's (Puerto Rico) received a $9.6 million formula EECBG grant award that was to be expended over a 3-year period from September 21, 2009 through September 20, 2012. Puerto Rico requested and received an extension of its grant to March 31, 2013. The Office of Inspector General contracted with an independent certified public accounting firm to express an opinion on Puerto Rico's compliance with Federal and Commonwealth of Puerto Rico laws, regulations and program guidelines applicable to the EECBG Program. The examination found that except for the significant deficiencies described in its report, Puerto Rico complied in all material respects with the aforementioned requirements and guidelines relative to the EECBG Program for the period September 21, 2009 through December 31, 2011. For instance, Puerto Rico did not know the status of and had not maintained supporting documentation for four cash advances totaling $449,000 to ensure funds were used for allowable costs. The Department's comments were responsive to our recommendation."
United States. Department of Energy. Office of Inspector General. Office of Audits and Inspections
2013-07
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Inspection Report: Alleged Nepotism and Wasteful Spending in the Office of Energy Efficiency and Renewable Energy
"The Department of Energy (Department) administers various hiring programs designed to generate a pipeline of talent to replenish its workforce and to maintain overall workforce vitality. One of those programs is the Student Temporary Employment Program (STEP), which provides opportunities for students in high school and college to gain work experience, while enhancing their awareness of the Department's mission and functions. In order to streamline the hiring process, STEP appointments are exempted from the usual competitive selection examining procedures; however, this streamlined process does not negate the responsibility for ensuring a fair and open competitive process during the selection of STEP participants. The Department's Office of the Chief Human Capital Officer (Human Capital) has primary oversight of the Department's hiring processes, including STEP. While Human Capital provides various hiring related services to a number of program offices, selection authority is vested in individual program offices. […] Recently, the Office of Inspector General (OIG) received allegations that a senior Office of Energy Efficiency and Renewable Energy (EERE) official had violated these regulations by: (1) engaging in nepotism by advocating for his three children to obtain STEP employment at the Department; and (2) wasting funds by enrolling two of the three children in costly training courses unrelated to their duties as STEP interns. We initiated the inspection to examine the facts and circumstances surrounding the allegations."
United States. Department of Energy. Office of Inspector General. Office of Audits and Inspections
2013-06
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Cost Incentives for the Department's Cleanup Contract in Idaho
"In Fiscal Year 2005, the Department of Energy (Department) awarded a Cost-Plus-Incentive-Fee contract to CH2M WG Idaho, LLC (CWI) to lead environmental cleanup of its Idaho National Laboratory site. The contract originally ran from May 1, 2005 through September 30, 2012, and has been extended for 3 years to September 30, 2015. The contract had a target cost of $2.7 billion and a target fee of $196 million (7.36 percent of target cost). The contract includes an additional incentive if work is completed under target cost, in which the fee will be increased by 30 cents for every dollar that the total allowable cost is less than the target cost. In addition to the target work to be completed within the contract, additional non-target work was allowed under Section B.5 of the contract. When the contract was originally approved, the contractor anticipated that the amount of additional non-target work would be approximately $89 million. However, the amount of non-target work completed ultimately increased to about $510 million, with the largest increase attributable to work funded under the American Recovery and Reinvestment Act of 2009 (Recovery Act). The Department and CWI are now negotiating to close out the agreed upon scope of work covered by the contract performance period that ended September 30, 2012, and to calculate fee based upon the cost to complete this work. In that connection, the Department requested that we perform this review. Our objective was to examine the appropriateness of the contractor's allocation of General and Administrative (G&A) costs to the entire scope of non-target work."
United States. Department of Energy. Office of Inspector General. Office of Audits and Inspections
2013-05
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Special Inquiry: Alleged Mismangement of the Department of Energy's Executive Protection Operations
"The Office of Inspector General (OIG) received allegations of mismanagement of the Department of Energy's Executive Protection forces. The complaints were varied but generally fell into the following categories: (1) ineffective executive protection policies and procedures; (2) compromised performance assurance tests; (3) inadequate training; (4) mismanagement of resources, such as failure to provide appropriate body armor; and (5) lack of implementation of recommendations for improvement. It was also alleged that the Department's Office of the General Counsel failed to provide clarification on legal authority and firearms policy, despite frequent requests. We initiated an inspection to review the facts and circumstances surrounding the allegations. The Chief Health, Safety and Security Officer also requested that we conduct an independent review of these matters. One element of the allegations involved reported misuse of premium class travel by the Deputy Secretary. That allegation was reviewed separately but was not substantiated. The results of our review of that matter were reported separately in January 2013."
United States. Department of Energy. Office of Inspector General. Office of Audits and Inspections
2013-04
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Examination Reports: Selected Sub-grantees of the Department of Energy's American Recovery and Reinvestment Act of 2009 - Illinois State Energy Program
"The Department of Energy's (Department) State Energy Program (SEP) provides grants to states, territories, and the District of Columbia to support their energy priorities and fund projects that meet their unique energy needs. The American Recovery and Reinvestment Act of 2009 (Recovery Act) significantly expanded the SEP by providing an additional $3.1 billion. The Illinois Department of Commerce and Economic Opportunity (DCEO) was allocated $101.3 million in Recovery Act SEP funds. DCEO allocated the funds to 8 separate programs funding more than 138 projects. Otis and Associates, PC (Otis), an independent certified public accountant firm, selected four sub-grantees to test their compliance with Federal and State laws, regulations and program guidance. The four sub-grantees selected were Association of Illinois Electric Cooperatives (AIEC); Bley, LLC (Bley); Funk Linko, Inc. (Funk Linko); and Abengoa Bioenergy Operations, LLC (Abengoa). The attached reports present the results of examinations of the selected sub-grantees' compliance with Federal and State laws, regulations and program guidelines applicable to the SEP in the State of Illinois (Illinois). The Office of Inspector General (OIG) contracted with Otis to perform the examinations and express opinions on the sub-grantees' compliance."
United States. Department of Energy. Office of Inspector General. Office of Audits and Inspections
2013-04
