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John C. Layton: Before The Subcommittee on Oversight and Investigations U.S. House of Representatives

October 23, 1997

Before The Subcommittee on Oversight and Investigations U.S. House of Representatives

Statement of John C. Layton, Inspector General Department of Energy

The Office of Inspector General, Department of Energy (DOE), has identified deficiencies in the administration of performance-based contracts. I believe that if contracts have incentives, they should encourage superior performance and discourage substandard performance. They should also be structured to ensure that safety is not compromised. We have made recommendations to help assure that incentive fees paid under performance based contracts represent actual achievement by the Department’s contractors, and that real and measurable benefits are obtained by the Department and the American taxpayer.