Contaminants include (1) organic chemicals such as benzene and fluorene, (2) inorganic chemicals such as arsenic and mercury, and (3) radiochemicals. DOE Pays Higher Prices Than EPA

DOE pays substantially higher prices than EPA for the same types of laboratory analysis at commercial laboratories. It is difficult to quantify the overall savings resulting from a centralized approach on the basis of the differences between the average prices paid by EPA and DOE because DOE has only recently started collecting data on the number of analyses performed for the Department by commercial laboratories, and those data are not yet complete or precise. DOE’s Decentralized Contracting Results in Administrative Inefficiencies

Under DOE’s decentralized approach, the Department’s contractors duplicate many of their efforts in both awarding and managing contracts, especially as a result of redundant quality assurance evaluations at the commercial laboratories. DOE’s annual operating plan for 1994 outlines 17 initiatives designed to improve many phases of its laboratory analysis program. While this estimate uses prices obtained through centralized procurement, it does not consider any effect due to the potential for radioactivity in DOE’s samples.
Why GAO Did This Study

Pursuant to a congressional request, GAO reviewed the Department of Energy's (DOE) decentralized approach to laboratory analysis, focusing on: (1) the differences in prices and contracting approaches between DOE and the Environmental Protection Agency (EPA) for similar types of laboratory analyses; (2) whether the decentralized DOE approach has resulted in any administrative inefficiencies; and (3) key changes DOE is making in its contracting procedures.

What GAO Found

GAO found that: (1) DOE pays substantially higher prices than EPA for the same types of commercial laboratory analyses; (2) while savings could be achieved through centralization, the amount of savings is difficult to measure; (3) unlike DOE, EPA conducts two procurements for organic and inorganic analyses for Superfund sites, while the decentralized DOE approach results in numerous inefficiencies, such as contractors performing redundant quality assurance evaluations at numerous commercial laboratories; and (4) DOE has recently identified 17 initiatives designed to improve many phases of its laboratory analysis program, but it does not plan to change its decentralized approach to laboratory analyses.