Cost overruns and schedule slips of the Department of Energy's major construction projects must be addressed.
Today's hearing has been called to examine the Department of Energy's continued inability to manage major construction projects, an issue that has been an ongoing concern with this Subcommittee. As a new member of this Subcommittee, I am deeply troubled by what I know of the cost overruns and schedule slips of the Department of Energy's major construction projects.
This year marks the 23th consecutive year - since 1990 - that DOE's contract management has made the Government Accountability Office's "high-risk" list for waste, fraud, and abuse. I understand that Department has made some progress. In its last report the GAO states that it will shift its focus of the high-risk designation to major construction projects with values of $750 million or greater. Still, these immense projects warrant the most prudent management and keen oversight of precious taxpayer dollars.
NNSA and EM currently manage 10 major projects with combined estimated costs totaling as much as $65.7 billion. This is a significant sum by any measure-more than double the 2012 Energy and Water bill. In an era of shrinking budgets, it is critically important that the Department get this right.
GAO noted that the Department of Energy continues to demonstrate a commitment to improve contract and project management in NNSA and EM. I expect to hear from the witnesses today about the Department's plans to address the remaining challenges for the successful execution of its construction projects moving forward.
Thank you Mr. Chairman for the time.
Source: U.S. Department of HCA
