Summary

In response to a congressional request, GAO evaluated the Department of Energy's (DOE) management controls over procurement practices, specifically: (1) subcontract activities; (2) procedures to protect against bribes and kickbacks; and (3) payment practices. In addition, GAO gathered information on the cost to the federal government of state-imposed taxes on DOE contractors.

GAO found that DOE had: (1) not established a common definition of competition for its contractors; (2) waived its requirement that contractors publish procurement notices for proposed contracts over $100,000; and (3) not regularly reviewed contractors' procurement in two categories that it exempted from competition. As a result, DOE has little assurance that its contractors procure items fairly and at the lowest possible cost.