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Audit Letter Report: OAS-L-09-04

February 12, 2009

Contractor Severance Plans at the Department of Energy

The Department of Energy reimburses its management and operating contractors for severance benefits paid to employees as part of involuntary workforce reductions. Severance benefits are paid to employees, to mitigate the impact of involuntary separations that result from changing missions and budget constraints. The Department reimburses the cost of benefits provided under contractor severance benefits plans. The Department's Office of Managements Office of Procurement and Assistance Management is responsible for development and implementation of policies for reimbursing contractor compensation plans, including severance benefits.

Topic: Management and Administration