Summary

GAO reviewed the Department of Energy's (DOE) management and operating contractor's control over government-owned property at the DOE Oak Ridge Operations Office. GAO noted that: (1) the contractor does not have a system for tracking and accounting for government-owned property or ensuring that subcontractors have procedures to manage and control government-owned property despite contractual and regulatory requirements for such a system; (2) the contractor has not corrected systematic problems since 1988 and Oak Ridge has not ensured that the contractor has acted on recommended corrective actions; (3) Oak Ridge does not know which subcontractors have government-owned property in their possession, the value of the property, or whether there are proper safeguards in place; and (4) these problems persist because DOE does not give them priority attention.