Blog purpose

This BLOG is for LLNL present and past employees, friends of LLNL and anyone impacted by the privatization of the Lab to express their opinions and expose the waste, wrongdoing and any kind of injustice against employees and taxpayers by LLNS/DOE/NNSA. The opinions stated are personal opinions. Therefore, The BLOG author may or may not agree with them before making the decision to post them. Comments not conforming to BLOG rules are deleted. Blog author serves as a moderator. For new topics or suggestions, email jlscoob5@gmail.com

Blog rules

  • Stay on topic.
  • No profanity, threatening language, pornography.
  • NO NAME CALLING.
  • No political debate.
  • Posts and comments are posted several times a day.

Monday, May 3, 2021

The fox in the henhouse

 April 2021 DOE IG Special Report: Internal Contractor Auditors at LLNL and Two Other Named Labs have a "fox-guarding-the-henhouse problem"


"The Department’s M&O contractors’ internal auditors are hired by, supervised by, paid by, and responsible to the contractors.25 In addition, the contractors’ audit executives typically have their personal bonuses tied to contract award fees.26 This creates a fox-guarding-the-henhouse problem. This design flaw is particularly problematic because an incurred cost audit is the single most critical audit measure available to control Federal expenditures and to ensure that Federal contractors are not overpaid, resulting in fraud, waste, or abuse.

26 The OIG has documented these bonuses at Lawrence Livermore, Idaho, and Oak Ridge National Laboratories."

https://www.energy.gov/sites/default/files/2021-04/DOE-OIG-21-26%20Amended.pdf

7 comments:

Anonymous said...


Chickens are coming home to roost, but we have a fox in the hen house.

Anonymous said...

Companies hire financial and other auditors all the time. Calm down.

Anonymous said...

"Companies hire financial and other auditors all the time. Calm down."

Except these are Federal expenditures monitored by contractor staff with skin in the game, hence the "fox-guarding-the-henhouse" label, and the transition to independent M&O audits. Unpublished salaries, raises, and bonuses, what could go wrong...? Why would IG Federal expenditure conflict of interest reviews be limited to contractor auditors alone given other contractor employees can be influenced using the same financial incentives that also impact M&O Federal expenditures? A follow the money Pandora's box.

Anonymous said...

Clearly the only solution is to federalize the entire workforce.

A bunch of pampered Ph.D.’s reduced to GS-15’s or below would be cheaper too.

Anonymous said...

A bunch of pampered Ph.D.’s


Just out of curiosity but what makes a Ph.D pampered? I know it sounds good and Pol Pot would agree, I would just like see some evidence for this.

Anonymous said...

" A bunch of pampered Ph.D.’s reduced to GS-15’s or below would be cheaper too."

Another solution is to dump the for-profit contractors in favor of flat fee non-profit contractors. This would be cheaper and present fewer award fee driven temptations to cook the books or to purchase compliance.

Anonymous said...

When is contract to manage LLNL up for bid? 2023?

Posts you viewed tbe most last 30 days