just-in-time training for the IPT. In the near term, OECM should bring on board a cadre of experts, skilled in performance-based contracting, to provide technical assistance to IPTs responsible for new major system initiatives.

Finding. The draft Program and Project Management (PPM) manual and draft Project Management Practices (PMP) developed by the OECM fail to address PBC adequately.

Recommendation. The detailed descriptions of PBC alternatives and their application to DOE projects should be included in the revised PMP and PPM.

Finding: There have been continuing efforts on the part of DOE to move toward a more effective use of PBC methods and to support these efforts.

Recommendation. Contract approaches should be tailored to use fixed-price and performance-based methods where practicable to assist the DOE to get the most cost-effective results and to stimulate competition. In addition, the department should continue to explore other innovative commercial contracting approaches to meet its needs.


DOE (Department of Energy). 2000. Program and Project Management for the Acquisition of Capital Assets (Order O413.3). Washington, D.C.: Department of Energy.

DOE, Contract Reform and Privatization Project Office. 2001. Analysis of the DOE Contractor Base: Readiness, Willingness, Profitability, and Trends: A Focus on the Environmental Management Program. Washington D.C.: Department of Energy.

EOP (Executive Office of the President). 1998. A Report on the Performance-Based Service Contracting Pilot Project. Washington, D.C.: Executive Office of the President.

GAO (General Accounting Office). 2001. Major Management Challenges and Program Risks: Department of Energy. GAO/GAO-01–246. Washington, D.C.: Government Printing Office.

NRC (National Research Council). 1998. Assessing the Need for Independent Project Reviews in the Department of Energy. Washington, D.C.: National Academy Press.

NRC. 1999. Improving Project Management in the Department of Energy. Washington, D.C.: National Academy Press.

NRC. 2001. Improved Project Management in the Department of Energy. Letter report, January. Washington, D.C.: National Academy Press.

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