Among the issues raised in a November report by the US Department of Energy’s (DOE) Office of Inspector General reviewing management challenges for fiscal 2012 was the cost of DOE labs. The report recommends the creation of an independent commission to analyze the DOE’s R&D lab complex. The DOE spends $10.4 billion annually to run 16 Federally Funded Research and Development Centers. Other DOE labs are: three National Nuclear Security Administration labs; 13 science labs run by the Office of Science, Office of Energy Efficiency and Renewable Energy, and the Office of Nuclear Energy; two naval propulsion labs; five National Energy Technology Laboratory sites; and other facilities operated by the government. Most of these labs are operated by contractors. According to the DOE’s fiscal 2009 Functional Cost Report, support costs accounted for an average of 35%–40% of the DOE labs’ operating costs, or $3.5 billion. Such costs may not be sustainable under current budget conditions.

Source: DOE