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Gregory H. Friedman: Before the Subcommittee on Government Management, Organization and Procurement of the Committee on Oversight and Government Reform U.S. House of Representatives

July 18, 2007

Before the Subcommittee on Government Management, Organization and Procurement of the Committee on Oversight and Government Reform U.S. House of Representatives

Statement of Gregory H. Friedman, Inspector General Department of Energy

Testimony on issues pertaining to contract management at the Department of Energy. More than any other civilian agency in the Federal government, the Department of Energy places significant reliance on contractors. There are about 15,000 Federal employees at the Department. In contrast, there are approximately 100,000 contract employees plus a significant number of subcontract employees, who operate the Department’s National Laboratories, production facilities, and environmental remediation projects. The operations performed by contractors consume at least three-quarters of the Department’s budget. As we have reported annually, managing this type of operation is one of the most pressing management challenges facing the Department. This challenge permeates almost every aspect of the Department’s programmatic and administrative activities, including the National Nuclear Security Administration.