Controlling Federal Costs For Coal Liquefaction Program Hinges On Management And Contracting Improvement

Author : GENERAL ACCOUNTING OFFICE WASHINGTON DC PROCUREMENT AND SYSTEMS ACQUISITION DIV.
Publisher :
ISBN 13 :
Total Pages : 90 pages
Book Rating : 4.:/5 (227 download)

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Download or read book Controlling Federal Costs for Coal Liquefaction Program Hinges on Management and Contracting Improvements written by GENERAL ACCOUNTING OFFICE WASHINGTON DC PROCUREMENT AND SYSTEMS ACQUISITION DIV. and published by . This book was released on 1981 with total page 90 pages. Available in PDF, EPUB and Kindle. Book excerpt: GAO's review of the H-Coal and Exxon projects showed inadequacies in DOE's contracting practices and a failure by DOE to properly plan, manage, and monitor, especially the H-Coal project. The initial Government-industry H-Coal agreements regarding the level of investment by private sponsors and the ceilings imposed on sharing in cost growth were imbalanced. Larger investments by private sponsors and sharing of cost growth provides an incentive to private sponsors to control costs and helps to assure that each party is fully committed to the success of the project. DOE started the H-Coal project prematurely before sufficiently detailed designs were available and without adequate project planning for functions such as construction scheduling, materials handling, inventory systems, and quality control. DOE staffing was inadequate at both projects to effectively monitor progress and contribute to timely decisions. Its contracts for the H-Coal plants were poorly written and administered. DOE plans for two large demonstration plants need careful review and attention in light of escalating cost and the risks involved in scaling up to the 6,000-ton-a-day facilities.