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<classification authority="sudocs">GA 1.13:RCED-98-223</classification>
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 <subject>Strategic planning</subject>
 <subject>Contractor performance</subject>
 <subject>Program evaluation</subject>
 <subject>Contractor payments</subject>
 <identifier>DOE Environmental Management Program</identifier>
 <identifier>Savannah River (SC)</identifier>
 <identifier>Hanford (WA)</identifier>
 <identifier>Idaho Falls (ID)</identifier>
 <identifier>Rocky Flats (CO)</identifier>
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<titleInfo>
 <title>Department of Energy: Lessons Learned Incorporated Into Performance-Based Incentive Contracts</title>
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<abstract>Pursuant to a congressional request, GAO reviewed the performance-based
incentives at the Department of Energy&apos;s (DOE) Hanford, Idaho Falls,
Rocky Flats, and Savannah River sites to determine: (1) the extent to
which DOE has incorporated lessons learned in developing its fiscal year
(FY) 1998 performance-based incentives; (2) whether these incentives
incorporate the baseline measures in DOE&apos;s 10-year plan for
environmental cleanup, and how fees are allocated to the incentives; and
(3) how DOE evaluates completed incentive measures and determines their
effectiveness.&lt;p/&gt;GAO noted that: (1) during the past year, DOE has taken steps to correct
the problems identified in the Office of the Inspector General reports
and its own assessment of performance-based incentives; (2) these steps
have included issuing guidance, conducting training, and incorporating
lessons learned into the FY 1998 incentives; (3) however, DOE believes
that FY 1998 represents a transitional period to better
performance-based incentives because it plans to continue to make
improvements to the incentives; (4) for FY 1998, at three of the four
sites GAO visited, DOE&apos;s performance-based incentives incorporated the
baseline measures in the Department&apos;s 10-year plan for environmental
cleanup and were generally linked to both DOE&apos;s strategic plan and the
site-specific plans; (5) the fourth site, Idaho Falls, has not yet
developed performance incentives in environmental management, but its
goals and objectives do incorporate the 10-year plan&apos;s baseline
measures; (6) furthermore, each of the four sites generally allocates
fees to individual performance incentives in proportion to their
relative importance and on the basis of the site&apos;s missions and
objectives; (7) DOE evaluates completed actions that were tied to
performance-based incentives through reviews by its technical,
financial, and contracting personnel to determine whether the contractor
satisfied the criteria and earned the amount of fee to be paid; (8)
overall, DOE maintains that performance-based incentives have been
effective in achieving desired end results; (9) however, it is not clear
whether the successes reported in the departmentwide assessment have
been due to the performance-based incentives or to the accompanying
increased emphasis on program management; and (10) furthermore, it is
too soon to assess the effectiveness of the FY 1998 incentives because
the evaluation of these incentives will not be complete until the end of
the fiscal year.</abstract>
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<identifier type="preferred citation">GAO/RCED-98-223</identifier>
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<note>Letter Report</note>
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 <searchTitle>GAO/RCED-98-223; Department of Energy: Lessons Learned Incorporated Into Performance-Based Incentive Contracts;
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<subject>
 <topic>Strategic planning</topic>
 <topic>Contractor performance</topic>
 <topic>Program evaluation</topic>
 <topic>Contractor payments</topic>
 <topic>DOE Environmental Management Program</topic>
 <topic>Savannah River (SC)</topic>
 <topic>Hanford (WA)</topic>
 <topic>Idaho Falls (ID)</topic>
 <topic>Rocky Flats (CO)</topic>
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