**GAO-07-888**                      Published: Jul 20, 2007. Publicly Released: Jul 20, 2007.                  

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## Highlights

In December 2000, the Department of Energy (DOE) awarded Bechtel National, Inc. (Bechtel) a contract to design and construct the Waste Treatment Plant (WTP), one of the largest nuclear waste cleanup projects in the nation. Originally expected to cost $4.3 billion and be completed in 2011, DOE now estimates that WTP will cost over $12.2 billion and be completed in late 2019. Weaknesses in DOE's management and oversight of contractors led GAO to designate DOE contract management as a high-risk area since 1990. GAO was asked to determine whether (1) DOE's internal controls are designed to provide reasonable assurance against improper WTP payments and (2) DOE's controls reasonably ensure proper accountability for WTP assets. GAO reviewed fiscal year 2005 and 2006 internal controls by analyzing data and documents, interviewing DOE and contractor staff, and physically observing property items.

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## Topics

Energy

AccountabilityContract administrationContract costsContract oversightContractor paymentsCost analysisErroneous paymentsFederal property managementFinancial managementInternal controlsNuclear waste disposalNuclear waste managementProgram evaluationProgram managementSchedule slippagesCost estimatesCost growthPolicies and procedures