The Department of Energy (Department) did not always effectively
and Fees use performance measures and fees to appropriately reward
contractor performance. Specifically, the Department allocated
approximately $1.1 million for 3 of the 27 performance measures
and fees for Fiscal Year (FY) 2005, which were disproportionately
high for the work performed. Four of the 49 measures and fees
established for FY 2006 provided the contractor the opportunity to
earn $1 million under similar circumstances. Also, some of the
performance measures worth $460,000, were implemented well
after the performance period began.