Full Title: National Nuclear Security Administration: Additional Steps Needed to Improve Cost Estimates for Fixed Price Subcontracts
Author(s): U.S. Government Accountability Offic
Publisher(s): U.S. Government Accountability Office
Publication Date: September 9, 2025
Full Text: Download Resource
Description (excerpt):
NNSA spends millions of dollars on hundreds of construction projects each year to maintain and modernize the research and production infrastructure at its eight nuclear security enterprise sites. NNSA relies on M&O contractors at its sites to manage the day-to-day activities associated with these construction projects. For less costly projects, M&O contractors may use fixed-price subcontracts to procure the services of subcontractors.
The report accompanying the Senate bill for the National Defense Authorization Act for FY 2024 includes a provision for GAO to review NNSA’s use of fixed-price construction subcontracts. This report examines (1) the extent to which M&O contractor policies for estimating the costs of fixed price subcontracts followed best practices, (2) the performance of M&O contractors in estimating costs, and (3) the extent to which NNSA oversees the cost estimating policies of its M&O contractors.
To do this work, GAO reviewed relevant regulations and DOE and NNSA directives and guidance on estimating costs for fixed-price construction subcontracts. GAO also analyzed contractor documentation and cost estimation data, and interviewed NNSA officials and M&O contractor representatives.