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<classification authority="sudocs">GA 1.13:RCED-99-107</classification>
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 <subject>Contract costs</subject>
 <subject>Reductions in force</subject>
 <subject>Contract administration</subject>
 <subject>Cost control</subject>
 <subject>Travel allowances</subject>
 <subject>Travel costs</subject>
 <subject>Federal downsizing</subject>
 <subject>Cost analysis</subject>
 <identifier>DOE Strategic Alignment and Downsizing Initiative</identifier>
 <identifier>Russia</identifier>
 <identifier>United Kingdom</identifier>
 <identifier>France</identifier>
 <identifier>Germany</identifier>
 <identifier>Vancouver (British Columbia)</identifier>
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 <title>DOE Management: Opportunities for Saving Millions in</title>
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<abstract>Pursuant to a congressional request, GAO provided information on the
Department of Energy&apos;s (DOE) contractor travel costs, and DOE&apos;s efforts
to reduce these costs, focusing on the: (1) travel costs incurred by DOE
contractors and their primary destinations during fiscal years (FY) 1996
through 1998; (2) purpose of this travel; and (3) success that DOE has
had in reducing contractor travel costs and additional actions available
to reduce these costs further.&lt;p/&gt;GAO noted that: (1) travel costs incurred by DOE contractors were
reduced from $261 million in FY 1995 to $223 million in FY 1996; (2)
since then, travel costs have increased--to $249 million by FY
1998--even though funding to the contractors during this period had been
decreasing; (3) about 96 percent of the contractors&apos; travel was to
domestic locations, the most frequent of these being Washington, D.C.
and the sites of DOE&apos;s major laboratories and test facilities:
Albuquerque, New Mexico; Oakland/San Francisco, California; Las Vegas,
Nevada; and Los Alamos, New Mexico; (4) the most frequent foreign
destinations were Russia, the United Kingdom, Germany, France, and
Japan; (5) the purpose of most travel was reported as being for business
reasons, that is, travel for purposes related to the mission of the
facilities; (6) this category included trips to attend meetings or
perform research; (7) GAO identified trips that were miscategorized or
were of questionable value to DOE; (8) for example, business trips
included travel to obtain advanced degrees; (9) the second most
frequently cited travel purpose was for attending conferences; (10)
according to DOE&apos;s Inspector General, the large number of conference
attendees is a concern; (11) the Inspector General identified hundreds
of DOE contractor staff attending a 1997 conference in Vancouver,
British Columbia, resulting in travel costs of about $1 million; (12)
DOE&apos;s success in reducing contractor travel costs has been limited; (13)
although contractor travel costs have increased since FY 1996, they have
remained below the FY 1995 level--the level that DOE established as a
baseline for calculating contractor travel cost savings; (14) only in FY
1996 did DOE attain the expected $30 million savings in contractor
travel by achieving a $38 million reduction in that year; (15)
contractors did not continue to achieve such savings because DOE did not
enforce its cost reduction targets and some contractors did not have an
overall strategy or plan to achieve lower travel costs; (16) DOE spends
millions of dollars on travel and other costs for contractor employees
on temporary or permanent assignment to Washington, D.C.; (17) DOE has
reduced the number of contractor employees in Washington and is planning
on further reductions; and (18) however, concerns exist over the
additional compensation that contractors are providing for employees on
long-term temporary assignments to cover the tax liabilities on their
living allowances.</abstract>
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<identifier type="preferred citation">GAO/RCED-99-107</identifier>
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<note>Letter Report</note>
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<subject>
 <topic>Contract costs</topic>
 <topic>Reductions in force</topic>
 <topic>Contract administration</topic>
 <topic>Cost control</topic>
 <topic>Travel allowances</topic>
 <topic>Travel costs</topic>
 <topic>Federal downsizing</topic>
 <topic>Cost analysis</topic>
 <topic>DOE Strategic Alignment and Downsizing Initiative</topic>
 <topic>Russia</topic>
 <topic>United Kingdom</topic>
 <topic>France</topic>
 <topic>Germany</topic>
 <topic>Vancouver (British Columbia)</topic>
 <topic>Japan</topic>
 <topic>District of Columbia</topic>
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