Audit of Mound Plant`s reduction in force

Abstract

Objective of this audit was to determine whether the Mound Plant`s Fiscal Year 1992 reduction in force (RIF) was effectively managed and implemented properly by DOE. DOE established policy to encourage contractors to reduce staffing by voluntary separations without unreasonable separation costs. EG&G Mound`s FY 1992 RIF was accomplished by voluntary separations; however, its implementation unreasonably increased costs because DOE did not have adequate criteria or guidelines for evaluating contractors` RIF proposals, and because EG&G Mound furnished inaccurate cost data to DOE evaluators. The unreasonable costs amounted to at least $21 million. Recommendations are made that DOE develop and implement guidelines to impose limitations on voluntary separation allowances, early retirement incentive payments, and inclusion of crucial employee classifications in voluntary RIFs.