Investigation of Alleged Contract Steering and Mismanagement by Two BSEE Managers

OIG investigated alleged mismanagement and misappropriation of funds by two managers at the Bureau of Safety and Environmental Enforcement (BSEE). Complaints received from BSEE employees included allegations that the managers interfered with the contracting process, steered contracts to favored bidders that were unqualified, generally mismanaged and misspent funds, and routinely hired their friends. 

 

The allegations were related to three procurements, namely an interagency agreement between BSEE and the U.S. Department of Energy’s Argonne National Laboratory, a maintenance contract for the Ohmsett facility, and a technical research project. The first two were each multimillion dollar awards, while the latter was valued at approximately $500,000. Our investigation did not reveal any improprieties in the award of these contracts, and we were unable to substantiate any improper hiring and promotion practices by the managers.