In 1994, the Departmental contract reform team recommended that the Department's major for-profit
operating contractors assume greater financial responsibility. In response, the Department developed model
contract provisions to increase contractor financial responsibility and accountability. The objective of the
audit was to determine if the Government is protected from liabilities such as fines, penalties, third-party
claims, and damage to or loss of Government property incurred by contractors who manage and operate
Department facilities and sites.