Audit of the Department of Energy`s management of field contractor employees assigned to headquarters and other federal agencies

The Department of Energy (Department) has spent at least $76 million annually for field contractor employee support in Headquarters and other Federal agencies. The employees were to provide technical expertise and experience critical to Department operations and programs. Overall, the audit was performed to determine if the Department was managing the use of field contractor employees assigned to Headquarters and other Federal agencies. Specifically, it was to determine whether the Department reviews and evaluates the costs for the use of contractor employees, is reimbursed for contractors working at other Federal agencies, and had implemented corrective actions proposed as the result of a prior audit report on this subject. The Department did not effectively manage the use of field contractor employees assigned to Headquarters and other Federal agencies. Specifically, the Department was unable to identify all contractor employees assigned to the Washington, DC area or determine the total cost of maintaining them; some employees were providing routine support and administrative services rather than unique program expertise; and several of the Department`s contractors had assigned their employees to work in other agencies without receiving full reimbursement for their services. In addition, the Department did not fully implement the corrective actions it agreed to in the prior audit report. Recommendations were made for the Deputy Secretary based on the audit findings. 3 tabs