The Oak Ridge Operations Office (Operations Office) awarded a contract to the Bechtel Jacobs
Company, LLC (Bechtel Jacobs) in December 1997. The terms of the contract require Bechtel Jacobs to
create new jobs in the Oak Ridge area with a cumulative payroll of $427 million through Fiscal Year (FY)
2003. In FY 1998, the contract required Bechtel Jacobs to create $11 million in new payroll. The
objective of the audit was to determine if Bechtel Jacobs met its commitment to create at least $11 million
in new payroll in the Oak Ridge, Tennessee area through September 30, 1998.