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 Richland, Wash., Sept. 15 /PRNewswire/ -- Westinghouse Electric Corporation (NYSE: WX) said today that it supports Department of Energy (DOE) initiatives for contract reform within the nation's weapons complex.
 Dr. A. Lamar Trego, Westinghouse Hanford Company executive vice president, recommended five steps to improve the DOE-contractor relationship.
 "We believe these reform initiatives would add simplicity and specificity to management and operations (M&O) contracts, while giving contractors the flexibility they need to achieve tangible and measurable progress," Trego said.
 Speaking here at one of a series of public meetings DOE is holding nationwide, Trego suggested that, as a first step, DOE could increase efficiency by involving all stakeholders early.
 As a second step, Trego recommended that DOE simplify and clarify contractor and DOE responsibilities.
 As a third step, Westinghouse recommends that DOE simplify its acquisition regulations. Westinghouse believes DOE should move in the direction of using Federal Acquisition Regulations (FARs), keeping only those Department of Energy regulations which apply to unique health, safety and environmental circumstances.
 FAR-based contracts would still bind contractors to the basic tenets of government contracting, "which mandate that costs be reasonable, allocable and allowable," Trego said.
 Next, Westinghouse recommends that DOE strengthen contractor accountability and DOE oversight responsibilities.
 "In many instances, the DOE now controls several management activities that should rightly fall to the contractor," Trego said. He said DOE's focus should be to determine policy and overall direction, allocate funds and empower the contractor to get the job done.
 In its recommended fifth step, Westinghouse believes DOE should base its contractor compensation on a risk-reward system. The system would be tied to measurable accomplishment -- as in a commercial enterprise.
 Contractors would then know what constitutes a "satisfactory" rating and how to exceed it, Trego said. DOE would progressively reward contractors for improved performance, with a cap for "outstanding" performance. Conversely, the system would progressively penalize the contractor for failure to meet established milestones.
 Westinghouse supports secretary Hazel O'Leary's initiative to encourage private sector investment in DOE sites, Trego said.
 The corporation would like to test contractor reforms at the DOE sites it manages, he concluded.
 Westinghouse is DOE's M&O contractor at sites from Washington State to South Carolina. In addition to the Hanford Site, near Richland, they include DOE's Waste Isolation Pilot Plant, near Carlsbad, N.M.; the West Valley Demonstration Project, near West Valley, N.Y.; and the Savannah River Site, near Aiken, S.C. The corporation also is responsible for managing spent nuclear fuel at DOE's Idaho National Engineering Laboratory near Idaho Falls.
 -0- 9/15/93
 /CONTACT: Kit Newton, 412-642-3348, or Penny Phelps, 509-376-2792, both of Westinghouse/

CO: Westinghouse Electric Corporation; Department of Energy ST: Washington IN: OIL ARO SU:

KC-MJ -- PG007 -- 2221 09/15/93 12:06 EDT
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Publication:PR Newswire
Date:Sep 15, 1993

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