Report on audit of the use of intra-departmental requisitions

摘要

The Department of Energy`s (Department) network of management and operating contractors, as well as other prime contractors, procure over $270 million in goods and services from each other on a yearly basis by using intra-Departmental requisitions. The objective of the audit was to determine whether intra-Departmental requisitions were used appropriately. Specifically, that they were not used to (1) obtain commercially available goods and services; (2) acquire services outside the performing contractor`s mission; (3) procure the services of subcontractors; and (4) augment staffing. The audit disclosed that the Department`s prime contractors did not use intra-Departmental requisitions appropriately for 40 of the 104 requisitions reviewed. As a result, the Department did not always receive the most cost effective goods and services. For example, on two requisitions the Department could have saved almost $850,000 out of $1.6 million if the prime contractors had used normal procurement channels and competed the acquisitions. In other instances, using intra-Departmental requisitions resulted in multiple overhead rates being added to the cost of the goods or services procured. We recommended the Department issue criteria on the use of intra-Departmental requisitions. We also recommended operations offices establish policies and procedures over the use of these requisitions and provide a stronger emphasis on the appropriate use of intra-Departmental requisitions through contractor instruction and yearly reviews. Department management concurred with the finding and recommendations and agreed to initiate action on the recommendations in the report. Management comments are included in Part III of this report.