U.S. Department of Energy 

Office of Inspector General 

Office of Audit Services 

Audit Report 

Department of Energy Efforts to 

Manage Information Technology 

Resources in an Energy-Efficient 

and Environmentally Responsible 

Manner 

OAS-RA-09-03 May 2009 
 
Department of Energy 

Washington, DC 20585 

May 27, 2009 

MEMORANDUM FOR THE SECRETARY 

 FROM: Gregory H. Friedman 

 Inspector General 

SUBJECT: INFORMATION: Audit Report on "Department of Energy 

 Efforts to Manage Information Technology Resources in an 

 Energy-Efficient and Environmentally Responsible Manner" 

BACKGROUND

The American Recovery and Reinvestment Act of 2009 emphasizes energy efficiency and 

conservation as critical to the Nation's economic vitality; its goal of reducing dependence 

on foreign energy sources; and, related efforts to improve the environment. The Act 

highlights the significant use of various forms of energy in the Federal sector and 

promotes efforts to improve the energy efficiency of Federal operations. One specific 

area of interest is the increasing demand for Federal sector computing resources and the 

corresponding increase in energy use, with both cost and environmental implications. 

The U.S. Environmental Protection Agency reported that, without aggressive 

conservation measures, data center energy consumption alone is expected to double over 

the next five years. In our report on Management of the Department's Data Centers at 

Contractor Sites (DOE/IG-0803, October 2008) we concluded that the Department of 

Energy had not always improved the efficiency of its contractor data centers even when 

such modifications were possible and practical. 

The Department of Energy and its facility contractors are major players in this process. 

U.S. taxpayers invest more than $2 billion annually in Department information 

technology resources, including devices that consume significant amounts of electricity. 

The Energy Independence and Security Act of 2007, required the Department and all 

other Federal agencies to improve energy efficiency and to reduce energy costs and 

greenhouse gas emissions. In 2008, to help achieve these goals, the Department issued 

operating guidance requiring the adoption and implementation of a number of 

information technology-related environmental stewardship practices, including enabling 

power management features on computers and peripherals. 

Because of significant cost, energy and environmental impacts, we initiated this audit to 

determine whether the Department managed information technology resources in an 

energy-efficient and environmentally responsible manner. 

RESULTS OF AUDIT

Despite its recognized energy conservation leadership role, the Department had not 

always taken advantage of opportunities to reduce energy consumption associated with
2 

its information technology resources. Nor, had it ensured that resources were managed in 

a way that minimized impact on the environment. In particular: 

• The seven Federal and contractor sites included in our review had not fully 

reduced energy consumption through implementation of power management 

settings on their desktop and laptop computers; and, as a consequence, spent 

$1.6 million more on energy costs than necessary in Fiscal Year 2008; 

• None of the sites reviewed had taken advantage of opportunities to reduce energy 

consumption, enhance cyber security, and reduce costs available through the use 

of techniques, such as "thin-client computing" in their unclassified environments; 

and, 

• Sites had not always taken the necessary steps to reduce energy consumption and 

resource usage of their data centers, such as identifying and monitoring the 

amount of energy used at their facilities. 

We concluded that Headquarters programs offices (which are part of the Department of 

Energy's Common Operating Environment) as well as field sites had not developed 

and/or implemented policies and procedures necessary to ensure that information 

technology equipment and supporting infrastructure was operated in an energy-efficient 

manner and in a way that minimized impact on the environment. For example, although 

required by the Department, sites had not enabled computer equipment power 

management features designed to reduce energy consumption. In addition, officials 

within Headquarters programs and at the sites reviewed had not effectively monitored 

performance or taken steps to fully evaluate available reductions in energy usage at their 

facilities. Without improvements, the Department will not be able to take advantage of 

opportunities to reduce energy consumption and realize cost savings of nearly 

$23 million over the next five years at just the seven sites reviewed. We noted that the 

potential for reduced energy consumption at these sites alone was equivalent to the 

annual power requirements of over 2,400 homes or, alternatively, removing about 3,000 

cars from the road each year. 

Many of the available energy reduction strategies, such as fully utilizing energy-efficient 

settings on the many computers used by the Department and its contractors, are "low 

hanging fruit" in that they will provide immediate tangible energy savings at little or no 

cost. Others, such as a shift to thin-client computing, an environment that transfers the 

processing capabilities from an individual's desk to a shared server environment, will 

require some level of investment which can, based on available literature, be successfully 

recovered through reduced acquisition and support costs. In our judgment, given its 

highly visible leadership in energy issues, aggressive action should be taken to make the 

Department's information technology operations as energy efficient as possible so that it 

can serve as a role model for both the Federal and private sector. 
3

To its credit, the Department had increased the number of energy-efficient computers 

purchased in recent years. In addition, the Office of the Chief Information Officer 

implemented an automated computer shutdown program at Headquarters that was 

estimated to save up to nearly $400,000 per year. Furthermore, we found that certain 

sites had initiated actions to review a potential transition to unclassified thin-client 

computing; however, implementation had not yet been completed. These are positive 

steps, but additional action is required, and our report contains several recommendations 

to this end. 

MANAGEMENT REACTION

Management concurred with the report's recommendations and pledged to take needed 

corrective actions. In separate comments, the NNSA agreed with the information 

contained in the report and concurred with each of the recommendations. Management's 

comments are included in Appendix 4. 

Attachment 

cc: Deputy Secretary 

 Administrator, National Nuclear Security Administration 

 Under Secretary for Science 

 Under Secretary of Energy 

 Chief of Staff 
 

AUDIT REPORT ON DEPARTMENT OF ENERGY EFFORTS TO 

MANAGE INFORMATION TECHNOLOGY RESOURCES IN AN 

ENERGY-EFFICIENT AND ENVIRONMENTALLY RESPONSIBLE 

MANNER 

TABLE OF 

CONTENTS 

Information Technology Management 

Details of Finding .............................................................................................................1
 
 

Recommendations.............................................................................................................8 
 


Comments .........................................................................................................................9 
 


Appendices 

1. Objective, Scope, and Methodology.........................................................................11 
 


2. Potential Savings.....................................................................................................13 
 


3. Prior Audit Reports...................................................................................................15 
 


4. Management Comments ...........................................................................................16 
 

________________________________________________________________________ 

 

 

 

INFORMATION TECHNOLOGY MANAGEMENT 
 


Information Technology 	 	 Our review of seven Federal and contractor sites 

Operations and Energy	 	 disclosed that the Department of Energy (Department) 

Consumption	 	 had not taken adequate steps to ensure that its 

information technology resources were managed in 

an energy-efficient manner and in a way that 

minimized impact on the environment. In 

particular, at each of the sites reviewed, we found 

that power management settings for desktops, 

laptops, and computer monitors were not enabled to 

the extent practical. In addition, none of the sites 

had implemented thin-client computing in their 

unclassified environments even though numerous 

industry best practices had identified such practice 

as a way to lower energy and acquisition costs, 

reduce disposal amounts, and enhance cyber 

security. The Department also had not always 

monitored the amount of energy used by its data 

centers, and therefore, could not justify the benefits 

of implementing more efficient technologies. 

Power Management 

The Department had not fully reduced energy 

consumed by its desktop and laptop computers 

through implementation of power management 

settings such as shutting down monitors, enabling 

computer standby, and placing a computer into 

hibernation when not in use. Although the Code of 

Federal Regulations and Executive Order 13423 – 

Strengthening Federal Environment, Energy, and 

Transportation Management – require Federal 

agencies to enable power management features on 

computers and monitors, we found that none of the 

seven sites reviewed had ensured that these settings 

were in place. 

While the Environmental Protection Agency (EPA) 

noted that shutting down a computer monitor when 

not in use is one of the easiest things a user can do 

to save energy, we found that 54 of 116 (47 percent 

of computers sampled at 7 sites [4 Federal, 3 

contractor]) failed to meet the EPA-recommended 

settings. For instance, each of the 20 computers 

reviewed at the National Energy Technology 

Laboratory (NETL) were set to never turn off the 

monitor after a period of non-use. At the Oak 

Ridge National Laboratory (ORNL), 8 of 18 

Page 1 	 	 Details of Finding 
 

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computers were set to turn the monitor off after 48 

hours, 144 times the recommended standard. Using 

EPA calculations, we determined that the sites 

reviewed could have saved over $405,000 per year 

had they followed the EPA-recommended standard 

for monitor shutdown. 

Placing a computer in standby mode after a 

specified period of non-use saves energy by cutting 

power to many of a computer's unused functions 

such as peripherals and hard drives. However, we 

found that none of the sites reviewed had uniformly 

implemented this setting consistent with EPA 

recommendations. For example, 23 of 24 

computers evaluated at the Sandia National 

Laboratories (SNL) did not meet the EPA 

guidelines, including 22 computers that were 

configured to never go into standby mode. 

In addition to standby, placing a computer into 

hibernation can provide additional energy savings. 

However, we found that nearly all of the computers 

reviewed did not have the hibernation feature 

enabled. Using EPA calculations, we determined 

that placing a computer into hibernation and 

standby mode could have saved on average $25 per 

machine annually at the sites reviewed, or 

approximately $1.2 million per year for the 46,435 

machines reviewed. Although hibernation may not 

be practical for all scientific machines, the 

Department could realize energy cost savings for 

the vast majority of its computers used for nonscientific, non-technical purposes. To its credit, the 

Office of the Chief Information Officer (OCIO) 

recently implemented an automated computer 

shutdown program as part of its Department of 

Energy Common Operating Environment 

(DOECOE) at Headquarters that was estimated to 

save up to nearly $400,000 per year. 

Thin-Client Computing 

The adoption of thin-client computing – a 

technology that depends primarily on central servers 

for processing activities rather than end-user 

desktops – can significantly reduce energy 

consumption. A thin-client device uses only a 

Page 2 Details of Finding 
 

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fraction of the energy consumed by a standard 

desktop, results in acquisition and disposal savings, 

and enhances cyber security. However, despite 

successes realized in implementing thin-client 

computing in the classified environment, the 

Department had not taken action to use this 

technology in its unclassified environment, where 

appropriate. 

Although thin-client computing can reduce end-user 

energy costs by up to 95 percent, none of the sites 

reviewed had implemented unclassified thin-clients. 

While we noted that thin-client computing would 

not be practical for everyone, based on estimates 

provided by Federal and contractor officials, we 

calculated that had the Department transitioned to 

this technology and replaced more than 10,300 

desktops at the seven sites visited, energy savings of 

more than $195,000 annually could have been 

realized. For instance, Headquarters could have 

replaced nearly 3,500 DOECOE desktops with this 

platform, saving $92,000 per year in energy costs 

alone. Similarly, had the Y-12 National Security 

Complex (Y-12) transitioned to thin-client 

computers, it could have reduced annual energy 

costs by $18,061. While there may be some 

incremental increased energy usage and 

infrastructure costs to support a thin-client 

infrastructure, a Headquarters official informed us 

that a recent Departmental study concluded that 

overall energy consumption could be reduced by 

more than 55 percent. 

At the seven sites reviewed, we determined that the 

Department paid $1.2 million more than necessary 

in hardware acquisition costs in Fiscal Year (FY) 

2008 by acquiring 2,063 desktops rather than thinclients. In one case, Y-12 could have saved up to 

$235,547 in FY 2008 by paying only about $275 

per thin-client rather than its average desktop cost 

of $950. In another instance, SNL could have saved 

up to $420,168 in hardware related costs over the 

same period by acquiring thin-clients instead of 

desktops. In addition, because thin-client machines 

generally have a life-cycle that is twice as long as a 

desktop and weigh only about one-fourth the 

Page 3 Details of Finding 
 

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amount of a desktop, the sites reviewed may be able 

to avoid disposal of up to 77 tons of waste material 

annually. 

In addition to energy and acquisition cost savings 

and reduced environmental impact, the use of thinclients can significantly enhance the Department's 

ability to protect sensitive unclassified information 

by centralizing cyber security controls. 

Specifically, thin-clients would have permitted the 

Department to more effectively implement security 

vulnerability patches through consistent and timely 

patch management. In addition, user permissions, 

such as defining what types of devices (i.e., devices 

such as flash or portable hard drives) may be 

connected to the machine, could have been more 

easily controlled. Industry research has found that 

thin-client computing has many additional benefits, 

including more effective management of software 

licenses and increased reliability of hardware. 

Data Center Energy Consumption 

Although studies indicate that the amount of energy 

consumed by data centers is expected to nearly 

double in five years, the Department had not always 

taken the necessary steps to evaluate and reduce 

energy consumption and resource usage of their 

data centers. Numerous studies and independent 

articles have reported that resources used by data 

centers will continue to increase substantially as 

demand for data processing and storage increases. 

However, five of the field sites reviewed had not 

monitored the amount of energy used by their data 

centers and, therefore, could not justify the benefits 

of implementing more efficient technologies. For 

instance, data center officials at ORNL noted that 

they were unaware of the costs of operating the data 

center and had not coordinated with facilities 

personnel to monitor and reduce energy 

consumption. Our recent report on Management of 

the Department's Data Centers at Contractor Sites 

(DOE/IG-0803, October 2008) disclosed that 

implementing more efficient technologies, such as 

virtualization, could significantly reduce data center 

operating costs. In addition, as noted by a 

Department official, one of the first steps in 

Page 4 Details of Finding 
 

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reducing energy consumption is to determine how 

much an entity is spending on energy usage in 

operating its data centers. 

In addition, we found that even though the 

Department's Office of Energy Efficiency and 

Renewable Energy recently developed the Data 

Center Energy Profiler – an automated tool 

designed to identify numerous energy-saving 

opportunities within data centers – at a cost of 

$465,000, none of the sites reviewed had utilized 

this tool. Furthermore, while NETL officials noted 

that they utilized cooling equipment that was 

energy-efficient when recently constructing a new 

data center facility, we found that additional energy 

reductions were possible had the site powered the 

equipment using direct current electricity, which 

was estimated to be up to 30 percent more efficient 

than what was utilized. One official estimated that 

even though the machine powered by direct current 

was more expensive, payback on this equipment 

could be achieved in less than two years through 

increased energy efficiencies and reduced 

maintenance costs. Notably, the Department had 

taken a number of actions in this area, including 

efforts to upgrade infrastructure of the Headquarters 

data center facility which will support the 

development of an energy improvement plan, and 

implementation of technologies such as 

virtualization at a number of field sites. 

Policies and Performance	 	 These problems occurred because Headquarters 

Monitoring and Evaluation	 	 programs and field sites had not developed and/or 

implemented policies and procedures that addressed 

all relevant requirements for ensuring an energyefficient information technology environment that 

minimized impact on the environment. In addition, 

a lack of adequate performance monitoring and 

program evaluations contributed to the 

Department's inability to ensure that information 

technology resources were managed in accordance 

with Federal requirements. 

Policies and Procedures 

Sites reviewed had not developed and/or 

implemented policies and procedures designed to 

Page 5 	 	 Details of Finding 
 

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manage information technology equipment in an 

energy-efficient and environmentally sound 

manner. In particular, Department Order 450.1A – 

Environmental Protection Program – required 

programs and sites to enable power management 

capabilities on all computers, monitors, and other 

electronic equipment. However, none of the sites 

reviewed had developed policies and procedures to 

ensure that this requirement was implemented. In 

addition, Headquarters organizations had not 

developed policies requiring sites to increase the 

efficiency of information technology operations by 

minimizing data center energy usage and evaluating 

the use of thin-clients where possible. For instance, 

even though the Department recently completed a 

transition to classified thin-clients in which it 

realized enhanced cyber security and reduced costs, 

it had not issued guidance requiring evaluation and 

consideration of this infrastructure in an 

unclassified environment. 

Performance Monitoring and Evaluation 

Officials within Headquarters programs and at the 

sites reviewed had not effectively monitored 

performance to ensure that information technology 

resources were being managed in an energyefficient manner and in a way that minimized 

impact to the environment. For instance, even 

though the sites reviewed operated more than 

46,000 desktops and laptops, none of them had 

implemented a process to monitor that all power 

management settings were enabled to the extent 

practical to achieve maximum efficiencies. In most 

cases, power management settings were not utilized 

because sites permitted users to enable those 

functions as they deemed necessary. However, the 

EPA reported that enabling certain settings could 

save as much as $25 to $75 annually per machine. 

Similarly, our review found that annual savings of 

$34 per machine could be realized at the seven sites 

reviewed through the implementation of commonly 

used power management settings. 

Sites also had not taken steps to fully evaluate 

potential reductions in energy usage at their 

facilities. For instance, sites reviewed had not 

Page 6 Details of Finding 
 

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obtained independent analyses of their data centers 

and other information technology operations to 

identify opportunities for efficiencies and related 

cost savings. Even when thin-clients were 

discussed, detailed project plans were not always 

completed or were not acted upon. For example, 

officials at Y-12 and ORNL stated that they had 

considered the prospects of implementing thinclients, but had not completed a formal analysis to 

determine the benefits and, therefore, had not 

initiated action. Although the OCIO had evaluated 

different manufacturers' thin-client solutions, a 

formal study had not yet been conducted. 

Cost Savings and	 	 Without improvements, the Department will not be 

Environmental Stewardship	 	 able to realize cost savings of nearly $23 million 

over the next five years at just the seven sites 

reviewed, will continue to use more energy than 

necessary, and may not be able to take advantage of 

opportunities to help reduce harmful emissions. As 

noted in a recent study, Dell Computer Company 

expects to realize annual savings of $1.8 million by 

implementing power management functions on 

50,000 desktop and laptop computers. Based on our 

audit work, we determined that the seven sites 

reviewed could potentially realize similar savings of 

about $7.8 million over the next five years by 

implementing recommended power management 

settings. Enabling these features complex-wide 

could result in significant additional savings. 

The Department could also realize hardware 

acquisition savings of up to $6 million over the next 

five years through adoption of thin-client computing 

at the seven sites reviewed. A transition to thinclient computing could also result in at least 

$149,000 of energy-related savings, including 

avoiding the use of 1.9 million kilowatt hours over 

five years. Furthermore, based on industry data, we 

estimated that the sites visited could save an 

additional $1.8 million per year through reduced 

support services costs associated with thin-client 

technology. Details of our cost savings calculations 

are included in Appendix 2. 

Page 7 	 	 Details of Finding 
 

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The energy savings realized by adopting power 

management settings throughout the Department 

could reduce electricity usage by over 27 million 

kilowatt hours per year, or enough to power 2,453 

homes. Alternatively, it could also reduce the 

amount of carbon-dioxide emissions created by 

producing the electricity necessary to power 

computers by 16,000 tons – equivalent to taking 

2,980 cars off of the road each year. Transitioning 

to thin-client technology for unclassified computing 

could provide additional environmental benefits 

because these machines have double the life-cycle 

and weigh only about one-fourth the amount of a 

desktop, enabling the Department to avoid disposal 

of up to 77 tons of waste material annually. 

Furthermore, adequate analysis of energy usage in 

its data centers may also enable the Department to 

take advantage of opportunities to reduce energy 

consumption and realize significant cost and 

environmental benefits. 

RECOMMENDATIONS	 	 To address the issues identified in this report, we 

recommend that the Administrator, National 

Nuclear Security Administration, the Under 

Secretary of Energy, and the Under Secretary for 

Science, in coordination with the Department and 

National Nuclear Security Administration Chief 

Information Officers: 

1. 	 Develop and implement policies and 

procedures for ensuring that power 

management settings are enabled on all 

computing resources, as appropriate; 

2. 	 Analyze the costs and benefits of utilizing 

thin-client computing in an unclassified 

environment and implement the results to the 

extent practical; and, 

3. 	 Identify and implement mechanisms to 

reduce data center energy consumption, 

including but not limited to conducting 

energy usage assessments and implementing 

the use of existing Department automated 

tools. 

Page 8 	 	 Recommendations 
 

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MANAGEMENT 

REACTION 

AUDITOR 

COMMENTS 

Management generally concurred with the report's 

findings and recommendations. While management 

believed that existing policy relating to 

implementing power management features was 

sufficient, it indicated that steps will be taken to 

ensure that power management settings are enabled 

where possible. In addition, management stated 

that thin-client technology is not acceptable for all 

computer users, but noted that it will continue to 

evaluate the costs and benefits of implementing 

thin-clients throughout the Department. 

Furthermore, management commented that it had 

already initiated action to address energy 

consumption in its data centers as a result of our 

prior report on Management of the Department's 

Data Centers at Contractor Sites. However, 

National Energy Technology Laboratory officials 

disagreed with our observation that they could have 

utilized more energy-efficient cooling equipment 

when constructing their data center. In its 

comments, management also disclosed that it was 

concerned that our estimated cost savings may be 

overstated. 

In separate comments, the NNSA agreed with the 

information contained in the report and concurred 

with each of the specific recommendations. The 

NNSA disclosed that except for a small 

configuration used to support mission applications, 

the information technology services utilized by its 

Federal workforce are the responsibility of the 

Department's OCIO. In addition, the NNSA noted 

that there are numerous technological and funding 

aspects that must be considered when implementing 

thin-client technology. Furthermore, management 

stated that it had taken action during the course of 

our review to promote energy efficiencies in its data 

centers. NNSA management indicated that it will 

work to implement the recommendations contained 

in the report. 

Management's comments were responsive to our 

recommendations. Where appropriate, we made 

changes to the body of our report to address 

management's comments. Although we agree that 

the existing Departmental policy contained a 

requirement to implement power management 

Page 9 Comments 
 

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settings, we found that none of the programs or field 

sites reviewed had developed supporting policies 

and procedures relevant to specific power 

management settings, such as required timeframes 

for enabling system standby, shutdown, and 

hibernation. Furthermore, as noted in our report, 

we agree that thin-client technology is not suitable 

for all users, but should be evaluated and 

implemented where appropriate. In addition, while 

we agree that NETL made incremental 

improvement when constructing their data center, 

we believe based on discussions with a Department 

official and industry research that additional 

efficiencies were possible had the site utilized direct 

current to power its cooling equipment. Regarding 

our estimated cost savings, as noted in Appendix 2, 

we utilized conservative information when 

performing our calculations to help ensure that we 

were not overstating potential benefits. 

Management's comments are included in their 

entirety in Appendix 4. 

Page 10 Comments 
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Appendix 1 

OBJECTIVE 

SCOPE 

METHODOLOGY
 
 

To determine whether the Department of Energy 

(Department) managed information technology 

resources in an energy-efficient and 

environmentally responsible manner. 

This audit was performed between July 2008 and 

April 2009 at Department Headquarters in 

Washington, DC, and Germantown, Maryland; the 

National Energy Technology Laboratory, 

Pittsburgh, Pennsylvania, and Morgantown, West 

Virginia; the Oak Ridge Office, Oak Ridge National 

Laboratory, and Y-12 National Security Complex, 

Oak Ridge, Tennessee; and, the Sandia National 

Laboratories and National Nuclear Security 

Administration (NNSA) Service Center, 

Albuquerque, New Mexico. 

To accomplish the audit objective, we: 

•	 Reviewed Federal regulations and 

Departmental directives and guidance 

pertaining to management of information 

technology resources; 

•	 Reviewed prior reports issued by the Office 

of Inspector General; 

•	 Reviewed numerous energy consumption 

related documents pertaining to the 

Department's management of information 

technology resources; 

•	 Held discussions with officials from the 

Environmental Protection Agency and 

program officials and personnel from 

Department Headquarters and field sites 

reviewed, including representatives from the 

Offices of the Chief Information Officer, 

Health, Safety and Security, Science, Fossil 

Energy, and the NNSA; and, 

•	 Performed physical observations of data 

centers and end-user computing environments 

and calculated potential cost savings based on 

our observations and relevant supporting 

documentation. 

Page 11 	 Objective, Scope, and Methodology 
 

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Appendix 1 (Continued) 

We conducted this performance audit in accordance 

with generally accepted Government auditing 

standards. Those standards require that we plan and 

perform the audit to obtain sufficient, appropriate 

evidence to provide a reasonable basis for our 

findings and conclusions based on our audit 

objectives. We believe the evidence obtained 

provides a reasonable basis for our findings and 

conclusions based on our audit objectives. The 

audit included tests of internal controls and 

compliance with laws and regulations to the extent 

necessary to satisfy the audit objective. Because 

our review was limited, it would not necessarily 

have disclosed all internal control deficiencies that 

may have existed at the time of our audit. We also 

assessed performance measures in accordance with 

the Government Performance and Results Act of 

1993 relevant to security over information systems. 

We found that none of the seven sites reviewed had 

developed measures related to our audit. We did 

not rely on computer-processed data to satisfy our 

audit objective. Management waived an exit 

conference. 

Page 12 Objective, Scope, and Methodology 
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Appendix 2 

POTENTIAL SAVINGS 

To determine potential savings associated with implementing power management 

functions, we obtained information from each of the seven sites reviewed relevant to the 

number of desktop and laptop computers in use. We also utilized information regarding 

energy usage assumptions included in an Office of the Chief Information Officer (OCIO) 

study, as well as information specific to each of the other sites visited and our own 

physical observations. Using this information, we entered the data into an Environmental 

Protection Agency (EPA) calculator designed to identify potential cost savings associated 

with enabling power management functions. Based on the data input into the EPA tool, 

we determined that the seven sites reviewed could save up to $7.8 million over the next 

five years by enabling EPA recommended power management settings on 46,345 desktop 

and laptop computers. 

In addition, we calculated potential savings that could be realized by implementing thinclient technology in an unclassified environment, including costs associated with 

hardware acquisition, support services, and reduced energy consumption. However, our 

analysis did not include examination of all infrastructure support costs associated with 

thin-client computing, such as the potential need for more data and application servers, 

since these requirements will vary by site. To calculate hardware savings, we obtained 

information from each of the seven sites reviewed pertaining to the number and cost of 

machines purchased over the past two years. We also obtained estimates from site 

officials regarding the percentage of unclassified desktops that could be converted to 

thin-clients, which ranged from 20 to 50 percent. Using actual purchase data and the 

officials' estimates noted above, we calculated the average price paid for a desktop in 

fiscal year 2008. To ensure our savings were conservative, we used the corresponding 

percentage of the least expensive computers at each site as our baseline in calculating the 

average price of a desktop computer. We then compared this result to the cost of 

acquiring an equivalent number of thin-clients using a phased approach, including 

additional hardware and licenses. Based on our review, we determined that the sites 

reviewed could save up to $6 million in hardware costs over the next five years. 

To calculate potential support services cost savings associated with the operation of thinclients, we utilized a third-party calculator. We input the number of potential desktops 

that could be converted to thin-clients, multiplied by the lowest end of the support 

services cost range to be conservative and determined that $8.8 million could be saved 

over the next five years at the sites reviewed. In addition, energy savings associated with 

thin-client usage was calculated by comparing the average amount of power used by a 

desktop compared to a thin-client. This difference was then multiplied by the number of 

hours used per year (as disclosed in an OCIO study) and the cost of a kilowatt hour at 

each of the sites visited. Based on this calculation, we determined that $149,785 in 

energy savings could be realized over the next five years. 

The table shown on the next page details the possible savings the Department could 

realize over the next five years. 

Page 13 Potential Savings 
 

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Appendix 2 (Continued) 

Site1 

Power 

Management 

Savings 

Thin-Client Savings 

Energy Acquisition Support Total 

NETL $42,383 $944 $150,226 $86,700 $280,253 

ORNL $407,053 $5,011 $255,982 $364,933 $1,032,979 

SNL $614,815 $5,188 $420,168 $490,450 $1,530,621 

Y-12 $252,364 $3,057 $235,547 $294,808 $785,776 

NNSA Service Center $41,370 $126 $7,617 $11,900 $61,013 

Headquarters $95,432 $15,409 $128,240 $495,125 $734,206 

ORO $110,360 $222 $8,425 $9,775 $128,782 

Annual Savings $1,563,777 $29,957 $1,206,205 $1,753,691 $4,553,630 

Five-Year Savings $7,818,885 $149,785 $6,031,025 $8,768,455 $22,768,150 

* Reflects only potential savings at a limited number of sites. We were unable to calculate Department-wide 

savings. 

1 The Department is currently transitioning the NNSA Service Center to the Department of Energy's 

Common Operating Environment (DOECOE), which will become the responsibility of the Office of the 

Chief Information Officer. In addition, potential savings calculated for Headquarters are based only on a 

review of DOECOE machines. 

Page 14 	 Potential Savings 
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Appendix 3 

PRIOR OFFICE OF INSPECTOR GENERAL REPORTS
 
 

•	 Management of the Department's Data Centers at Contractor Sites (DOE/IG-0803, 

October 2008). The Department of Energy (Department) had not always taken 

advantage of opportunities to improve the efficiency of its data centers. In 

particular, as many as 140 data centers were found at the six sites reviewed that 

duplicated common services such as e-mail, data storage, and libraries. 

Furthermore, four of the six sites made only limited use of more efficient hardware 

technologies that conserve energy and reduce operational costs. The Office of 

Inspector General (OIG) estimated that $2.3 million per year for these six sites 

could be saved through the use of more efficient hardware technologies allowing 

for the consolidation of servers and be more energy-efficient. 

•	 Facility Contractor Acquisition and Management of Information Technology 

Hardware (DOE/IG-0768, June 2007). Over the past three years, the Department 

has spent over $400 million on information technology hardware; however, 

problems have been noted in its ability to effectively manage its acquisition and 

control of such hardware. The audit noted that five of seven sites reviewed had not 

developed or fully implemented hardware specifications and brand standards for 

computers and related peripherals, causing at least $4.7 million in unnecessary 

expenditures over a three-year period. The report concluded that the Department 

could potentially realize savings of about $16.6 million over five years at the sites 

reviewed by better controlling hardware costs and implementing standards for 

certain equipment. 

•	 The Department's Efforts to Implement Common Information Technology Services 

at Headquarters (DOE/IG-0763, March 2007). The OIG found that although some 

progress had been made at Headquarters, five major organizations, accounting for 

40 percent of the total potential user population, were not migrated to the common 

operating environment within the first year as planned, thus preventing the 

realization of the full $15 million in expected first year cost savings. The OIG 

recommended that completion of Headquarters migration to the Department's 

Common Operating Environment be accomplished prior to implementation at field 

sites. Additionally, formalization of migration plans, requirements analyses, and 

cost-benefit analyses should be accomplished. 

Page 15 	 Prior Audit Reports 
Appendix 4 

Department of Energy 

Washington. OC 20585 

May 7,2009 

MEMORANDUM FOR RICKEY R. HASS, DEPUTY INSPECTOR GENERAL 

OFFICE OF AUDIT SERVICES 

OFFICE OF THE INSPECTOR GENERAL 

FROM: THOMAS N. PYKE, JR. e 

SUBJECT: Department of Energy Report on "The Department's Efforts to 

Manage information Technology Resources in an Energy-Efficient 

and Environmentally Responsible Manner'' 

The Ofice of the Chief Information Officer (OCIO) appreciates the opportunity to provide 

comments to the Ofice of Inspector General's April 3,2009 draft report on managing 

information technology resources. The OCIO and the Department fully support the efforts to 

reduce the nation's cncrgy consumption and acknowledge the benefits of improving the 

energy efficiency of Federal operations across the DOE Complex. 

To answer the recommendations in the report, the Department's Chief Financial Officer 

requested that the OClO consolidate its comments with those from the various Departmental 

Program offices, and, as such, comments have been received from the Office of Science, the 

Office of Fossil Energy, and the National Energy Tcchnology Laboratory. The National 

Nuclear Security Administration indicated that they would provide comments under a 

separate cover. 

Comments to address thc specific recommendations are outlined below while technical 

comments to the body of the report are included as an attachment. 

Develup and implement policies andprocedrires for ensuring that power management settings 

nre enabled on all computing resources, as appropriate. 

The Department concurs with the intent of the recommendation -to help ensure power 

settings are enabled across the DOE Complex, as appropriate-but disagrees that additional 

policy is needed. Departn~ental policy already exists in 'the form of DOE 0450.1A, 

Environmental Protection Program. which specifies that federal and contractor sites are 

required to "enable Energy Stam features (e.g. power management capabilities) on all 

computers, monitors, printers, copiers, and other electronic equipment, or to the maximum 

degree based on mission needs." 

In addition, the current DOE COE desktop computer that is delivered and maintained by the 

OClO for the majority of Headquarters organizations and some field sites already possesses 

numerous energy saving controls. In early 2008. the OClO worked closely with the provider 

Page 16 Manaqement Comments 
Appendix 4 

of the DOE COE patch management softwareto include a power management capability. 

Through thisjoint effort, extensive power management capabilities were added and 

implemented to the DOE COE Windows XP standard image. These power management 

features include the ability to force the desktop computer to be powered off at night. Patch 

management is now staggered during periods of non-activity during the nonnal duty hours 

which removes the requirement to leave the computers on at night to receive patches. 

Program and field locations included in the audit have indicated that they would take 

additional sttps to enable power management settings where possible. In particular, the 

Office of Science stated that they would "provide additional direction to their federal and 

contractor personnel to implement power management settings as directed in DOE 0 

450.1A." The National Energy Technology Laboratory confirmed that they were "moving 

forward to regulate power management settings for all desktop and laptop computers through 

the execution of scripts to automatically change power management settings on NETL 

deltops and laptops in accordance with the EPA recommendations to turn off monitors after 

20 minutes of inactivity." They added that they will be initiating a pilot to determine the 

impect of placing systems into standby after 60 minutes of inactivity although their past 

experience of placing systems into standby or hibernation mode has not been positive as such 

actions have caused systems to lose connection to servers or to network disk drives. 

Recommendation 2 

Analyre rhe costs and beneftts of urilizing thin-clienr compuring In an unclassified 

environment and implemenr rhe resulfs ro rhe exlenr prmical. 

The OCIO concurs with the recommendation. During FY08,the OCJO began a multi-vendor 

prototype testing activity and evaluated six different thin client product offerings. In addition, 

live testing of the technology continued at the OCIO March 2009 Jnfonnation Management 

Conference in New Orleans and agreement was reached to begin a pilot project for further 

evaluation at a DOE field site. 

However, our analysis to date indicates that, while thin client product offerings should suffice 

for many DOE federal employees and their direct supporc contractors, this technology is not 

an acceptable substitute for all computer users. One example of an area that may be 

challenging for thin client usage is in the delivery of video streamsand applications that rely 

on high end graphics. Therefore, we anticipate DOE will require a mixed environment of 

thin-client architectures and PC technology. OCIO commits to continue to evaluate user 

needs and their applications in assessing all costslbenefits and potential impacts of 

implementing thin-clients throughout DOE. 

The Office of Science (SC) stated that they believe suficicnt codbenefit data is already 

available to them and their sites for dcciion-making purposes. SC plans to allow their 

individual sites to evaluate and implement the technologies that represent the best use of their 

management attention and resources. 

NETL agrcccl to review the results of the OCIO's current and hturc analyses and identi@ a 

subsequent path forward. 

Paae 17 Management Comments 
Appendix 4 

Recommendation 3 

IdentifL and implement mechanisms to reduce data center energy consumpiion, including. bur 

not limited to, mnakting energy usage assessments and implementing tk use of existing 

Dapmtmcnt automded tools. 

The comments made by the Department as part of the report on Management oftk 

Department 's Data Centers at Contractor Sites (DOEIIG-0803, October 2008). as well as the 

action plans asmciated with the recommendations made in that rrpon, already address this 

recommendation. 

TheOffice of Science noted that the IG did not provide data showing that no work was 

ongoing in this area, just that sites were not making use of the particular tool the OIG 

encountered. The National Energy Technology Laboratory disagreed with the conclusion that 

their data center was not energy efficient stating, "The data center HVAC system utilizes 

chilled water data center units. They arc very reliable and as energy effcient as anything on 

the market. Chilled water units were chosen for various reasons: I) since the building's 

HVACsystem operates on an independent chilled water system, the building's system could 

be wdas the redundant backup system should one of the data center's chil,led water 

generators fail; 2) the data center's heat load can allow the building's chilled water generators 

to operate moreefficiently during transitional ambient ternpetatms; and, 3) the chilled water 

generators provide free cooling during cold ambient temperatures greatly enhancing system 

efficiency." 

As cited in the prior report, the OCIO has already consolidated the common services and 

implemented application hosting for most of the Headquarters program elements and, in 

response to the prior nport, agreed to share best practices associated with that consolidation 

as requested. In addition, the OCIO -in partnenhip with the Federal Energy Management 

Program in the Of'fice of Energy Emciency and Renewable Energy, the Office of 

Management, and the Lawrence Berkeley National Laboratory (LBNL) - will be installing 

power, cooling, and data center environmental metering systems for the Germantown and 

Forrestal data centers. Due to the age and configuration of these data centers, then is no 

effective method to isolate the data center power and cooling consumption from therest of the 

building. The asscsxnent effort proposes to install power and cooling meters to baseline 

energy use and support the development of an energy improvement plan. The metering 

system is expected to be installed by the end of May. 

3 

Page 18 Manaaement Comments 
Appendix 4 

Departmentof Energy 
 


National Nuclear Security Admlnlstratlon 
 


Washington, DC 20585 
 


May 1, 2009 

MEMORANDUM FOR Rickey R. Hass 

Deputy Inspector General 

for Audit Services fl 

FROM: Michael C. Kane 

Associate Administrator 

for Management and Administration 

SUBJECT: 	 	 Comments to the IG's Draft Report on IT Energy 

Efficient Resources, Project No. A08TG064; IDRMS 

NO. 2008-02008 

The National Nuclear Security Administration (NNSA) appreciates the opportunity to 

review the Inspector General's (IG) draft report, The Department's Efforts to Manage 

Information Technology Resources in an Energy-Eflcient and Environmentally 

Responsible Manner. We understand that this audit was conducted to determine whether 

the Department is managing the life-cycle of information technology equipment in an 

energy-efficient and environmentally responsible manner. 

NNSA generally agrees with the report and recommendations. However, it is important 

to note that the NNSA Federal computing resources (e.g., desktops, peripherals) are 

managed by DOE through Energy Information Technology Services (EITS) as part of the 

DOE Common Operating Environment (DOE COE). Consequently, EITS the 

Department's Chief Information Officer (DOE CIO) manages all power settings for 

NNSA Federal staff desktops and peripherals. Any changes to the DOE COE 

configuration and image that maximizes power efficiency are the responsibility of EITS. 

Recommendation 1: Develop and implement policies and procedures for ensuring 

that power management settings are enabled on all computing resources, as 

appropriate. 

Even though the NNSA concurs with the recommendation, we do not directly control 

Federal computing resources except for a very small configuration that NNSA maintains 

to support mission applications. The NNSA' Chief Information Officer (NNSA CIO) is 

prepared to work closely with the DOE CIO and EITS in defining the appropriate power 

management settings and implementing these though the customer service and service 

level agreements established between the two parties. 

Paae 19 	 	 Management Corr~ments 
2
 


Management and Operating (M&O) computing resources: The M&O contractors directly 

control their computing resources and have the responsibility for managing the power 

settings on their computing resources. As part of its IT oversight responsibilities, the 

NNSA CIO will work closely with the Contracting Officers and M&O contractor staffs to 

identify and implement energy efficient power settings. The following table outlines the 

actions that the NNSA CIO plans to undertake: 

Action Completed By 

• Develop a policy to minimize computing resources power 

consumption 

o Establish policy formulation team 

o Identify appropriate power settings 

o Develop draft policy 

o Assess impact 

o Have policy approved 

4 Q – FY 2010 

• Modify contracts 

o Prepare Contract Requirements Document (CRD) 

o Modify contracts as necessary 

2 Q – FY 2011 

• Monitor and Report 180 days after CRD 

is implemented and 

on an annual basis to 

ensure continued 

compliance 

Recommendation 2: Analyze the costs and benefits of utilizing thin-client computing 

in an unclassified environment and implement the results to the extent practical. 

The NNSA in theory agrees with the recommendation. Below are identified impacts, as 

well as a series of actions to address the recommendations. These actions are dependent 

on the funding that is required to plan, design, acquire, and implement a thin-client 

architecture for the NNSA unclassified systems. 

It is important to note that putting in place a thin-client desktop is only one of the actions 

and cost items for implementing a thin-client architecture. A thin-client architecture will 

impact: 

•	 NNSA networks – acquiring the bandwidth and circuits/switches necessary to support 

greatly increased transmission loads while maintaining performance and reliability 

requirements. 

•	 NNSA infrastructure – acquiring the thin-client devices that support unclassified 

computing applications and peripherals. Also acquiring and configuring the server 

and storage networks necessary to support thin-client computing. 

•	 NNSA business applications and databases – defining, planning, modifying, and 

testing changes to NNSA business applications and data bases to work on a thinclient architecture. 
 

3
 


•	 NNSA cyber security policies – defining, planning, implementing, and testing cyber 

security standards, configurations, and settings to support a thin-client architecture. 

The following outlines the actions that the NNSA CIO proposes to undertake related to 

analyzing the costs and benefits of and implementing a thin-client architecture to the 

extent practical. 

Action Completed By 

• Conduct a study on the costs, benefits, and impacts of moving 

to a thin-client architecture for NNSA’s unclassified systems. 

o Define objectives, scope, key actions and 

deliverables 

o Select contractor 

o Undertake study 

o Assess impact, costs and benefits 

2nd Q – FY 2012 

• Phased implementation of a thin-client architecture for 

unclassified systems that support Federal sites and staff 

TBD 

(Dependent upon 

funding availability 

and results of the 

study) 

• Phased implementation of a thin-client architecture for 

unclassified systems that support M&O contractor sites and 

staff 

TBD 

(Dependent upon 

funding availability 

and results of the 

study) 

Recommendation 3: Identify and implement mechanisms to reduce data center 

energy consumption including but not limited to conducting energy usage 

assessments and implementing the use of existing Department automated tools. 

Even though the NNSA concurs with the recommendation, we do not directly control 

Federal computing resources except for a very small configuration that NNSA maintains 

to support mission applications. The NNSA CIO will undertake a series of actions to 

address the recommendations. 

Federal data centers: In early FY 2009, the NNSA CIO identified the serious energy 

consumption, maintainability, scalability, and performance issues with its current 

Headquarters configuration and initiated actions to replace it. NNSA is promoting the 

acquisition of a “blade” architecture using a virtual operating system (VMware), an 

enhanced storage network using advance NAS technology, and a new back-up 

technology. This configuration would significantly reduce NNSA’s “foot print” and 

power consumption. 

Action Completed By 

• Replace NNSA’s mission support infrastructure 1st Q – FY 2010 
M&O computing resources: The M&O contractors directly control their computing 

resources and have the responsibility for monitoring and managing the power utilization 

on their computing resources. Several M&O's (Pantex, Livermore, Los Alamos) have 

initiated, and in some cases completed projects to virtualize their unclassified 

environments, which have resulted in significant reductions in physical servers and the 

related power consumptions. The,NNSA CIO has strongly supported these efforts. As 

part of its IT oversight responsibilities, the NNSA CIO will work closely with the 

Contracting Officers and M&O contractor staffs to further reduce energy consumption, 

implement energy usage assessments, and implement the appropriate tools. The 

following table outlines the actions that the NNSA CIO plans to undertake: 

Action Completed By 

Develop a program to conduct periodic energy usage 4 Q ­FY 2009 

assessments at the sites 

Monitor and report energy usage On an annual basis 

Analyze existing DOE automated tools for identifying data 1 Q ­FY 2010 

center power saving opportunities and determine if complexwide use is possible 

Determine applicability of tools for use by sites lQ ­FY 2010 

Develop and implement a program to inform IT staff at M&O's 2 Q ­FY 2010 

on how to identify power saving opportunities 

Monitor developments in mechanisms and tools for reducing On-going 

data center energy consumption and inform IT staff at the 

M&OYs about appropriate mechanisms and tools 

Should you have any questions about this response, please contact Cathy Tullis, Acting 

Director, Policy and Internal Controls Management, at 202-586-3857. 

cc: Linda Wilbanks, Chief Information Officer 

David Boyd, Senior Procurement Executive 

Karen Boardman, Director, Service Center 
 

IG Report No. OAS-RA-09-03 

CUSTOMER RESPONSE FORM 

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