OIG:JSC Mismanaged $42.7M Energy Contract

>NASA OIG: NASA's Management of Energy Savings Contracts

"We found that Johnson mismanaged its $42.7 million energy contract. Specifically, Johnson officials did not require Honeywell to submit annual savings verification reports and accepted a flawed report for the first year, did not consider the effect of renovations to or demolition of facilities on the guaranteed savings rate, and added work to the contract without ensuring that energy savings would cover the additional costs. Based on our interviews and document review, it was apparent that Johnson contracting officials did not effectively administer the energy contract. Moreover, neither Johnson nor NASA had developed sufficient guidance or an effective training program regarding administration of energy contracts. As a result, Johnson may have overpaid Honeywell because it could not verify that the conservation measures installed under the contract resulted in the guaranteed $2 million in annual energy savings."

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This page contains a single entry by Keith Cowing published on April 8, 2013 10:41 AM.

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