Report on review of proposed subcontract for outsourcing information technology

An allegation was made to the Office of Inspector General (OIG), and also reported in the press, regarding possible kickbacks in connection with a proposed Westinghouse Savannah River Company (WSRC) subcontract with the Computer Sciences Corporation (CSC) for outsourcing information technology (IT). OIG investigative activity did not substantiate this allegation. However, in the course of investigating the allegation it came to the OIG`s attention that WSRC`s selection of CSC for this proposed subcontract had possibly involved significant deviations from procurement rules and regulations. Accordingly, the specific objective of this review was to determine if the selection of CSC as a proposed subcontractor was made in accordance with appropriate procurement rules and regulations. In the course of our review, the Department of Energy`s (DOE) Savannah River Operations Office (SR) made the decision to disapprove WSRC`s proposed subcontract with CSC, taking this action on December 23, 1996, and have issued this report in order to address several management issues and possible future procurement issues