Department of Energy Office of Inspector General Bechtel National, Inc.'s Cost Proposal Estimates for Baseline Change Proposal 02 and Its Contract Modification 384 Counterpart for the Waste Treatment and Immobilization Plant (DOE-OIG-23-34)
What Did the OIG Find?
We found that Bechtel did not utilize reasonable cost proposal estimates for baseline change proposal 02 and its contract modification 384 counterpart at the Waste Treatment and Immobilization Plant. First, Bechtel did not always use adequate estimating practices. Second, Bechtel was unable to reconcile management reserve amounts to identified risks and demonstrate how estimates reconciled to the Risk Management Plan. Finally, Bechtel's use of its Monte Carlo simulation was not consistent with industry practice, which resulted in overstated hours and costs. We attributed these issues to inadequacies in Bechtel's estimating system and Department oversight. We identified several weaknesses related to Bechtel's labor hour estimates. The labor hour estimates account for approximately $1.8 billion of the total proposed $4.5 billion.
What Is the Impact?
These issues resulted in estimates that were likely unreasonable, could not be adequately supported, and potentially benefited Bechtel improperly and disadvantaged the taxpayer. In addition, the issues identified indicate an inadequate estimating system could impact every future estimate Bechtel makes on this project. We identified over 1 million direct labor hours added through Bechtel's questionable application of Monte Carlo.
https://www.energy.gov/sites/default/files/2023-10/DOE-OIG-23-34.pdf
Comments
“The U.S. Department of Energy has asked its Office of Inspector General to investigate the recent firing of Hanford whistleblower Donna Busche.”
https://www.seattletimes.com/seattle-news/doe-to-investigate-whistleblower-firing/
https://www.energy.gov/sites/default/files/2014/10/f18/IG-0923.pdf
https://whistleblower.org/press/doe-inspector-general-fails-address-hanford-whistleblower-retaliation/
"You knew I was a snake when you picked me up."
.That is costing taxpayers. There seems to be an unwritten rule: don't mess with Bechtel. I cannot believe Bechtel that a for-profit construction company is in charge of insuring national security. Will you hire your barber to perform surgery on you?
Bechtel baby, that is how we role. Get in get the cash, leverage what you can and get out and on to the next.
On a more serious note people were say back in 2009 that our enemies may be watching how we are treating the national labs, and we do not take them seriously anymore.