Office of Inspector General audit report on Project Hanford management contract costs and performance

摘要

On August 6, 1996, the Richland Operations Office (Richland) awarded the Project Hanford Management Contract (Management Contract) to Fluor Daniel Hanford, Inc. (Fluor Daniel). This performance-based, 5-year contract to support cleanup of the Department of Energy`s (DOE) Hanford Site (Hanford) contained performance goals or expectations related to the stabilization, transition, and diversification of the Tri-Cities` economy near Hanford in southeastern Washington. One of these economic goals was that Fluor Daniel and its major subcontractors would help generate 3,000 new, non-Hanford, private sector jobs that would help stabilize and diversify the Tri-Cities` economy. The contract specifically called for Fluor Daniel to help generate 200 jobs, establish an investment fund, and bring 6 new growth-oriented enterprise companies to the Tri-Cities by the end of Fiscal Year (FY) 1997. The objective of the audit was to determine whether Richland was making adequate progress in stabilizing and diversifying the economy of the Tri-Cities by creating 3,000 new, non-Hanford jobs within 5 years. Accordingly, the author examined the progress made in FY 1997, which was the first year of the Management Contract. Richland and Fluor Daniel are at risk of not meeting the Management Contract`s goals of stabilizing and diversifying the economy of the Tri-Cities because most of the new jobs created during FY 1997 were not comparable to Hanford jobs and, thus, may not sustain long-term economic goals. Therefore, Fluor Daniel has not met its expectations in the first year and is not making adequate progress toward meeting the Management Contract`s overall economic goals.