National Laboratories DOE Needs to Assess the Impact of Using Performance-Based Contracts.
Abstract
The Department of Energy (DOE) contracts with private companies and educational institutions to manage and operate 18 of its 22 laboratories. These are cost reimbursement contracts under which DOE pays all of its contractors' allowable costs. DOE can also provide a fee, or profit, to a contractor for managing a laboratory. Responding to criticism that its historical contracting practices were costly and inefficient, DOE switched to performance-based contracts in 1994 as part of its contract reform program. Use of these contracts allows DOE to structure each contract to provide a clear statement of what needs to be accomplished-rather than providing broad statements of work-and to rely on performance measures to evaluate a contractor's progress toward meeting its objectives. An important feature of performance-based contracting is providing incentives, including fees, to the contractor's achievement of objectives as a means of encouraging superior performance and lowering costs. Concerned about the progress made to implement performance-based contracting at the national laboratories, you asked us to assess the status of performance-based contracting in DOE'S national laboratory contracts, and identify efforts being made to determine the impact of performance-based contracting.
Document Details
- Document Type
- Technical Report
- Publication Date
- May 01, 1999
- Accession Number
- ADA364367
Entities
Organizations
- United States Government Accountability Office