The Department of Energy's Use of Support Service Contractors to Perform Basic Management Functions.

During this review we were able to identify several conditions which give DOE contractors sufficient latitude to perform basic management functions. Specifically, we found that While OMB guidance to Federal agencies prohibits contractors from performing governmental management functions, contractors are permitted to assist the agency in performing such functions. No criteria exists to determine what constitutes performance versus assistance by contractors. DOE officials have stated that there are not enough people available within the agency to perform all the required work. While contractors are hired to assist DOE in performing program functions, they may actually perform the work as extensions to the agency staff, thus giving the appearance of circumventing personnel ceilings. DOE contract statements of work are often written to allow for considerable flexibility in the actual work performed. This gives contractors an opportunity to perform basic management functions. We found it extremely difficult to determine when contractors were actually performing basic management functions. The primary roadblock was the need for criteria to determine where contractor assistance ends and performance begins in carrying out a basic management function.