Our review of five contracts for national laboratories and disclosed that the Department of Energy (Department) agreed to provide fees, fixed payments, and/or reimbursements for actual home office expenses that were (1) potentially duplicative; (2) not adequately documented; (3) improperly calculated; and/or (4) for specifically unallowable items. For a home office expense to be allowable it must be reasonable, allocable, conform to limitations and exclusions set forth in the cost principles and in the contract, and be adequately documented.
