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Letter Report: HQ-L-00-01

March 14, 2000

Charitable Giving Requirements in Department of Energy Contracts

It recently came to our attention thas several contracts awarded by the Department to manage its facilities include clauses requiring charitable giving by the contractors. In pursuit of this matter, the Office of Inspector General conducted a limited review and identified three recent solicitations and corresponding contracts that did, in fact, contain such provisions. These provisions are over and above contractor requirements for local economic development. One contract, for example, requires the contractor to contribute $1 million per year to "educational, cultural, civic, and health and welfare organizations" for each year of the contract. This was consistent with the contractor's commitment made in response to the Department's terms for soliciting bids. the level of giving with respect to the other two contracts we reviewed is $860,000 over the life of one contract and a minimum of $600,000 per year in the other contract. A listing of the solications and contracts is attached.