What Happened?

The National Nuclear Security Administration spends more than $20 billion per year on nine management and operating contracts to run the government-owned, contractor-operated sites of the nation's nuclear security enterprise. The investigative arm of Congress, the Government Accountability Office, found the agency lacks documented criteria for deciding when to use individual contract line item numbers.

A recent report found NNSA does not consistently use a contracting tool that could improve accountability. The tool, individual contract line item numbers, started in 2014 to add visibility to specific work inside those contracts.

Line items capture information about separately identifiable goods and services the government seeks to acquire within an overall contract. The U.S. Government Accountability Office (GAO) found NNSA lacks written rules for when to use them, leaving contracting officers without consistent standards.

Why Does it Matter to Me?

Tax dollars could be wasted. There are not enough accountability mechanisms to account for the massive sums being spent; the agency plans nearly $200 billion over the coming decade on weapons production facilities, research infrastructure and capital asset projects.

Despite those sums, NNSA has used the tracking tool minimally. Of 21 capital asset projects with approved baselines as of June, only five use separate line items.boratories

Both Sides, Now

The GAO concluded that NNSA may miss opportunities to improve accountability and contractor performance.

On the other side, officials and contractor representatives said separate fee plans and reviews need extra administrative resources, which they cited as a drawback. NNSA officials said they weigh total cost, complexity and dedicated appropriations, but have not put those factors in policy or guidance.

What Happens Next?

The GAO recommended that the process and criteria contracting officers should use and assess when determining which deliverables warrant separate line or subline items. As a concrete next step, NNSA officials told GAO they are considering adding at least two other construction projects at one site as separate line items. Until NNSA documents criteria and lessons learned, GAO concluded the agency risks missing chances to improve accountability and performance.

You can track the status of those open recommendations through Legis1.com.

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