Audit of the Union Valley sample preparation facility at Oak Ridge

This audit was initiated to determine if the US DOE`s acquisition of the Union Valley Sample Preparation Facility (UVSPF) was necessary and cost effective. To accomplish the audit objective, four actions were taken: (1) review of applicable laws and regulations, (2) analysis of procurement files for the lease and interviews of Department and contractor officials, (3) evaluation of facility justifications, and (4) assessment of workload and staffing requirements of Lockheed Martin Energy Systems` Analytical Services Organization. The audit found that Energy Systems did not base the acquisition of the UVSPF on valid mission requirements. This occurred because Energy Systems did not follow Department procedures in planning and developing the lease, and the Department approved the lease without adequate justification. It was recommended that the Manager, Oak Ridge Operations Office: (1) direct Energy Systems to follow Department policies and procedures and base acquisitions of property on valid mission requirements and an analysis of all viable alternatives; (2) direct project managers to follow Department orders and require approvals of construction projects and property leases to include (a) verification that projects are essential to meet mission requirements and (b) analysis of all viable alternatives; and (3) direct Energy Systems to give the required 365-day notice and discontinue the lease. The audit also found that Energy Systems restricted the location of the UVSPF without establishing a programmatic need for the restriction. The restriction gave an Energy Systems subcontractor a competitive advantage and may have caused the Department to pay more than necessary for the facility. It was recommended that the Manager, Oak Ridge Operations Office, direct Energy Systems to discontinue the practice of restricting facility locations unless they are justified to meet mission requirements. The audit concluded that the UVSPF was not necessary