LANL subject to another IG report
INSPECTION REPORT: DOE/IG-0889
June 7, 2013
Concerns with Consulting Contract Administration at Various Department Sites
National Nuclear Security Administration (NNSA) requested that we
conduct a review to determine whether a consulting agreement awarded to
Heather Wilson and Company, LLC (HWC), by Los Alamos National Laboratory
(Los Alamos) was appropriately administered and managed. Specifically,
we were asked to determine whether: (1) work products (deliverables)
were produced in return for monthly payments to HWC of $10,000; (2)
invoices included itemized charges, as required by the agreement; (3)
there was overlap between the services provided and work products
produced by HWC on consulting agreements awarded by Sandia National
Laboratories, Los Alamos, Oak Ridge National Laboratory and the Nevada
National Security Site; and (4) an NNSA Contracting Officer was
subjected to "pressure" when Los Alamos National Security, LLC, the
Management and Operating contractor for Los Alamos, requested
authorization to enter into an agreement with HWC.
identified serious concerns with the administration and management of
agreements with HWC for advice and consultation provided to senior
managers at four Department contractor-operated sites. Specifically,
our testing revealed that the four facility contractors paid
approximately $450,000 to HWC even though they did not receive evidence
that work performed under the agreements had been completed. These
payments were fully reimbursed by the Government.
identified in this report occurred because contractor officials
responsible for crafting and administering the consulting agreements
either did not incorporate, or failed to enforce, the requirements of
the Federal Acquisition Regulation into the agreements with HWC.
Management generally agreed with our findings and recommendations and
indicated it was in the process of implementing or completing corrective
actions. Management indicated that the Department has already
recovered $442,877 from its contractors of the approximately $464,203
paid to HWC, and is reviewing the allowability of the additional
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