Department of Energy: Efforts to Streamline Project Management at National Laboratories and Nuclear Sites

Summary

What GAO Found A Secretary of Energy memorandum directed revisions to the Department of Energy’s (DOE) construction order (known as 413.3B) to (1) allow increased delegation of approval authority for projects estimated to cost up to $300 million; and (2) limit independent reviews for projects estimated to cost between $300 million and $1 billion. As of January 2026, DOE and the National Nuclear Security Administration (NNSA) were managing 80 capital asset projects at laboratories and sites where daily operations are carried out by management and operating (M&O) contractors. The projects are collectively estimated to cost as much as $65.5 billion. Revisions could affect 66 of the ongoing projects and future ones. Figure 1: Locations of Relevant Department of Energy and National Nuclear Security Administration Laboratories, Plants, and Sites As of March 2026, officials said revising the order was on hold. However, some DOE offices and NNSA have taken steps to implement the changes. DOE’s Office of Science (Science) delegated critical decision approval authority to national laboratory directors, who are M&O contractor employees, for 20 projects at nine laboratories. NNSA is developing guidance on changes to independent reviews. The changes are too recent to have yet demonstrated an effect. Science and NNSA officials said streamlining project approvals and conducting fewer independent reviews could improve efficiency and save costs. GAO’s analysis of DOE and NNSA guidance additionally found that eliminating certain independent reviews could reduce confidence in the reliability of cost and schedule estimates and result in late identification of potential problems. For example, a 2026 peer review helped support planning efforts to address expected cost increases for an NNSA project in New Mexico. Science and NNSA officials said they will use the existing process for evaluating individual M&O contractors’ performance to assess the effectiveness of the revisions. But these evaluations do not assess agencywide progress toward achieving desired goals. By establishing specific goals, outcomes, and measures, the agencies would be better positioned to determine whether the revisions are achieving improved efficiency and cost savings. Why GAO Did This Study DOE and NNSA, a separately organized agency within DOE, carry out capital asset acquisitions for construction projects to modernize laboratory and site infrastructure and to acquire certain major items of equipment. Projects estimated to cost more than $50 million are managed according to DOE Order 413.3B. The order requires increasingly senior leadership officials to approve projects as they progress through various critical decision points (e.g., design approval) depending on the cost of the project. In March 2025, the Secretary of Energy issued a memorandum directing revisions to this order to streamline capital asset project management and reduce unnecessary administrative burdens for the national laboratories operated by M&O contractors. GAO was asked to examine the potential implications of the Secretary’s March 2025 memorandum. This report provides information on how DOE program offices and NNSA are implementing the memorandum for ongoing projects, and potential implications for project oversight. GAO reviewed project data and documents from DOE and NNSA and interviewed officials responsible for project management and oversight.