As the operator of the Department's Savannah River Site, Westinghouse Savannah River Company
(Westinghouse) receives three types of fees: (1) award fees commensurate with the overall performance
rating, (2) Performance Based Incentive (PBI) fees for achieving measurable goals or defined tasks as
specified in annual operating plans, and (3) Cost Reduction Incentive Program (CRIP) fees for making
improvements in site operations that reduce total contract costs. The Department's Contracting Officer
notifies Westinghouse when fees are earned, and Westinghouse withdraws the authorized amounts from
the Department's letter-of-credit account.
The audit objective was to determine whether Westinghouse withdrew the appropriate amount of fees
from the letter-of-credit account in Fiscal Years (FY) 1997 and 1998.