Audit of the Superconducting Super Collider Laboratory Small Business Program

The Department of Energy's (DOE) Superconducting Super Collider (SSC), under construction near Waxahachie, Texas, is expected to be the world's largest and most expensive particle accelerator. In January 1989 Universities Research Association, Inc. was awarded a contract to design, construct, manage, operate and maintain the SSC Laboratory. DOE expected to complete the project in 1999 at a cost of $8.2 billion. Through Fiscal Year 1992 the Laboratory had spent about $957 million, with $719 million going to subcontractors. In view of the large amount spent with subcontractors and in view of congressional interest in maximizing contracting with small and small disadvantaged businesses, an audit was initiated to evaluate the adequacy of the SSC Laboratory's Small Business Program. Controls in place were not adequate to ensure that an appropriate portion of contract awards was made to small and small disadvantaged businesses. Reported accomplishments were incorrect, program goals were set too low, actual accomplishments were unknown, and the Laboratory's small business databases were inaccurate and incomplete. If awards reported through Fiscal Year 1992 (as adjusted by audit) remain at the same level in the future, the SSC will fall 18 percent ($116 million) short of the overall goal for small disadvantaged businesses. Management agreed with the audit findings and recommendations and provided details on corrective actions taken and planned. Management took exception to one finding's conclusion that goals have not been met and that small disadvantaged business goals over the life of the project will not be achieved