Report on inspection of the performance based incentive program at the Richland Operations Office

The Fiscal Year (FY) 1995 Performance Based Incentive (PBI) Program at the Department of Energy`s (DOE) Richland Operations Office (Richland) was initiated by Richland as one part of the broader DOE Contract Reform Initiative being implemented at the Hanford Site in FY 1995. This program was identified as an area of concern by the Office of Inspections as a result of previous inspection work. Specifically, during a limited review of the construction of an Effluent Treatment Facility at the Hanford Site, we were unable to identify any written policies describing PBI program controls or implementation procedures. We were told that Richland Operations Office Program Management personnel were not directly involved in the selection of the Effluent Treatment Facility project for the PBI Program, or in the determination that this particular PBI would be established with a potential fee of $1 million