Managing DOE: Tighter Controls Needed Over the Department of Energy's
Outside Litigation Costs (Testimony, 07/13/94, GAO/T-RCED-94-264).

The Department of Energy (DOE) has spent millions of dollars to defend
its contractors against lawsuits, but has not kept track of total costs
and has been lax in reviewing bills submitted by law firms, including
those for travel, meals, and other expenses. DOE's only attempt to
collect data on litigation costs showed that the agency spent about $31
million in fiscal year 1992 on outside legal fees. However, significant
other costs, such as the development and operation of litigation
databases--averaging more than $8 million annually--were excluded from
DOE's estimate. DOE has yet to establish criteria directing contractors
to seek discounted fees or to set limits on billing by law firms for
administrative expenses. Also, DOE has not adequately reviewed legal
bills to ensure that they are justified. These shortcomings have caused
DOE to pay more than was necessary for contractor litigation. The need
for strong DOE controls will become more critical as the details of past
radiation experiments on humans continue to be disclosed. These
revelations will likely produce more lawsuits against the operators of
DOE facilities, thus increasing legal costs for the agency.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  T-RCED-94-264
     TITLE:  Managing DOE: Tighter Controls Needed Over the Department 
             of Energy's Outside Litigation Costs
      DATE:  07/13/94
   SUBJECT:  Litigation
             Civil procedure
             Legal services contracts
             Cost control
             Liability (legal)
             Contract administration
             Legal fees
             Data collection operations
             Accountability

             
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