Audit report: Bechtel Jacobs payroll creation

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Description

The Oak Ridge Operations Office (Operations Office) awarded a contract to the Bechtel Jacobs Company, LLC (Bechtel Jacobs) in December 1997. The terms of the contract require Bechtel Jacobs to create new jobs in the Oak Ridge area with a cumulative payroll of $427 million through Fiscal Year (FY) 2003. In FY 1998, the contract required Bechtel Jacobs to create $11 million in new payroll. The objective of the audit was to determine if Bechtel Jacobs met its commitment to create at least $11 million in new payroll in the Oak Ridge, Tennessee area through September 30, 1998. We could ... continued below

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14 p.

Creation Information

Brendlinger, T.L. April 1, 1999.

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Description

The Oak Ridge Operations Office (Operations Office) awarded a contract to the Bechtel Jacobs Company, LLC (Bechtel Jacobs) in December 1997. The terms of the contract require Bechtel Jacobs to create new jobs in the Oak Ridge area with a cumulative payroll of $427 million through Fiscal Year (FY) 2003. In FY 1998, the contract required Bechtel Jacobs to create $11 million in new payroll. The objective of the audit was to determine if Bechtel Jacobs met its commitment to create at least $11 million in new payroll in the Oak Ridge, Tennessee area through September 30, 1998. We could not determine if Bechtel Jacobs met its new payroll commitment. Bechtel Jacobs reported that it created $13.5 million in new payroll through September 30, 1998. In our opinion, the Department was not provided with sufficient data to fully verify that all claimed payroll had been created. The Operations Office verified that Bechtel National, Inc., and Jacobs Engineering Group Inc., created $4.9 million in new payroll through September 30, 1998. However, the only data supporting the remaining $8.6 million claimed by Bechtel Jacobs were letters from local companies showing the amount of new payroll claimed. The Operations Office did not require Bechtel Jacobs to obtain sufficiently detailed records to support the local companies' claims, and accepted the letters as adequate support. The Operations Office believed that company officials would not sign payroll creation claims unless the claims were true. As a result, the Department has little assurance that Bechtel Jacobs created $13.5 million in new payroll, and Bechtel Jacobs may have received up to $4.5 million in fee to which it was not contractually entitled.

Physical Description

14 p.

Notes

Paper copy available from OSTI until supply depleted. Also at http://www.hr.doe.ig, DOE Human Resources and Administration Home Page or http://www.ma.doe.gov; OSTI as DE00006664

Medium: P; Size: 14 pages

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  • Other Information: PBD: 1 Apr 1999

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Office of Scientific & Technical Information Technical Reports

Reports, articles and other documents harvested from the Office of Scientific and Technical Information.

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Creation Date

  • April 1, 1999

Added to The UNT Digital Library

  • Sept. 12, 2015, 6:31 a.m.

Description Last Updated

  • April 7, 2017, 2:05 p.m.

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Brendlinger, T.L. Audit report: Bechtel Jacobs payroll creation, report, April 1, 1999; United States. (digital.library.unt.edu/ark:/67531/metadc707599/: accessed December 13, 2018), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.