oversight

Department of Energy: Training Cost Data for Fiscal Years 1995 Through 1997

Published by the Government Accountability Office on 1997-05-06.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

United States
General Accounting Office
Washington, D.C. 20548

Resources, Community,   and
Economic Development    Division


 B-276769


 May 6, 1997


 The Honorable Joe McDade
 Chairman
 The Honorable Vie Fazio
 Ranking Minority Member
 Subcommittee on
   Energy and Water Development
 Committee on Appropriations
 House of Representatives

 Subject:   Denartment of Energv: Training Cost Data for Fiscal Years 1995
            Through 1997

As requested, we are providing you with information on the training that the
 Department of Energy (DOE) provides to its employees and contractors. The
 Department provides a wide variety of training to its employees and
 contractors to improve or enhance, among other things, managerial expertise,
job knowledge, working relationships, and professional development. As
 agreed with your office, the enclosures to this letter address (1) DOE’s
training costs’ for fiscal years 1995 through 1997 (see encl. I), (2) examples of
classes offered by the Department (see encl. II), (3) the size of the training
 organizations for selected DOE offices and selected contractors (see encl. III),
 (4) the extent to which selected DOE headquarters offices have completed
annual training plans and their employees have completed individual
development plans (see encl. IV), and (5) DOE’s investment in training
compared with that of private industry (see encl. V).




‘Training costs include the cost of providing training, whether in-house or
contracted for, and the value of time for the personnel being trained.
                                      GAOIRCED-97-140R   DOE’s Data on Training   Costs
B-276769
SUMMARY

According to DOE’s data, in fiscal years 1995 and 1996,the Department spent
about $554 million and $476 million, respectively, on training for its own and
contractor employees. In fiscal year 1997, DOE projects that it will spend
about $438 million for training. With these funds, DOE offers a wide range of
training, from technical courses on nuclear physics and chemistry to
nontechnical courses on back care and defensive driving. DOE’s training
structure is very decentralized, headquarters offices, field-offices, and
contractors all have their own training programs with dedicated staff. The
size of the training staffs for selected DOE offices ranged from 1 or 2
individuals to more than 20. The extent to which DOE staff and these offices
met DOE-wide training requirements varied from office to office. These
requirements state, in part, that each employee must complete an individual
development plan2 In fiscal year 1996, the percentage of staff completing an
individual development plan varied, from 25 to 30 percent in some DOE
headquarters offices to 70 to 90 percent in others. Finally, for 1995, the
average number of training days per year per employee (about 8.0) and the
average training investment per year per employee (ranging from $1,966 to
 $3,415) were higher for DOE than for private industry, according to statistics
reported by DOE and by the American Society for Training and Development’s
 Benchmarking Forum.3

AGENCY COMMENTS

We provided copies of a draft of our report to DOE for its review and
comment. DOE agreed with the information presented. However, DOE said
that we did not adequately characterize the improvements the Department has
made to employee training. DOE noted, for instance, that the Department has
developed a training improvement plan that, upon implementation, should
result in the proper sizing of training staffs and budgets within the
Department. In addition, DOE stated that it is consolidating its management



2Such a plan establishes an employee’s needs for training, development, and
qualification on the basis of the (1) Department’s and organization’s goals,
objectives, and mission; (2) technical qualification standards for the
employee’s position (if applicable); and (3) employee’s personal and
professional development goals.
these are the latest data available for comparing DOE’s investment with
private industry’s.
2                                      GAO/WED-97-140R   DOE’s Data on Training Costs
B-276769
and scheduling of training. Overall, DOE expects its improvements will
reduce duplication and waste in its training program (see encl. VI).

It is important to note that the purpose of this report was to provide
information and statistics on DOE’s training. It was not within the scope of
our work to characterize, evaluate, and/or validate DOE’s efforts to improve
training within the Department. Accordingly, while DOE’s comments indicate
that a number of efforts are under way to reduce duplication and waste, we
cannot comment on the extent to which these efforts are working.

SCOPE AND METHODOLOGY

We conducted our work at DOE headquarters in Washington, D.C. We
obtained data on DOE’s training costs for fiscal years 1995 through 1997 from
DOE’s Office of Training and Human Resource Development. We did not
verify the accuracy of these data. We obtained information on the training
classes offered by DOE by contacting DOE headquarters officials from the
Offices of Human Resources and Administratiom Defense Programs;
Environmental Management; Environment, Safety, and Health; and G&i&y
Management. We determined the size of the training organizations for
selected DOE offices and selected DOE contractors by contacting DOE
officials within those organizations or DOE officials with oversight
responsibility for those contractors. We determined, for selected DOE
headquarters offices for fiscal year 1996, what percentage of employees had
completed individual development plans and whether those offices had
completed an annual training plan by interviewing the training coordinators
for those offices. Finally, we obtained data on private industry’s training costs
by contacting the American Society for Training and Development’s
Benchmarking Forum. The Forum is a cooperative venture among 54 national
and international companies with strong commitments to employee training.
Member companies include American Telephone and Telegraph; Ford Motor
Company; General Motors; and International Business Machines. We
performed this work from February through April 1997 in accordance with
generally accepted government auditing standards.



As arranged with your offices, unless you publicly announce its contents
earlier, we plan no further distribution of this report for 30 days. At that time,
we will provide copies to appropriate congressional committees, the Secretary
of Energy, and other interested parties. We will also make copies available to
others upon request.

3                                      GAOIRCED-97-140R DOE’s Data on Training   Costs
B-276769

Please call me at (202) 512-3841 if you or your staff have any questions. Major
contributors to this report include Robert Baney, William Seay, and William




Enclosures




                                        GAO/RCED-97-140R DOE’s Data on Trdning   Costs
ENCLOSURE I                                                                             ENCLOSURE I

                        DOE’S TRAINING COSTS, F’ISCAL YEARS 1995-97

Table 1.1: Summary of DOE’s Trainino Costs. Fiscal Years 199597


                                                        Fiscal year
                                           1995                          1996                       1997
    Eiement                             (actual)                      (actual)                (projected)
    DOE headquarters offices
    Cost of providing             $43,212,861’              $30,838,983’                   $28518,206
    traininga
    Value of time for               11,866,458                 8,626,425                      8,705,156
    personnel being
    trainedb
    DOE field offices
    Cost of providing              18,576,771 d              18,011,362’                    17,351,900
    traininga
    Value of time for              19,752,276’                36,023,994                    36542,200
    personnel being
    trainedb
    DOE contractors
    Cost of providing             229,977,41 Of             209,667,772’                   200,393,942
    traininga
    Value of time for             231 ,018,839              172,669,63ge                   146,795,190
    personnel being
    trainedb
    Total                          $554,404,615              $475,838,175                   W&306,594

aThis is the cost of in-house training organizations and the cost associated with contracting for
training.

bThis is the cost associated with employees’ attendance at training. It includes salary/fringe
benefit costs, which are calculated by multiplying the duty hours both in training and traveling to
and from training by a DOE-calculated average 1995 hourly cost rate. The hourly rate used was
$31.25 for DOE federal employees and $29.41 for DOE contractor employees. Travel costs are
included except where noted. DOE calculated the value of time for personnel being trained for
fiscal years 1996 and 1997 using 1995 salary/fringe benefit hourly cost rates. According to a
DOE official, DOE’s training cost data were compiled for congressional staff and calculations


5                                                     GAO/WED-97-140R        DOE’s Data on Training   Costs
ENCLOSURE I                                                                          ENCLOSURE I
using updated hourly cost rates for fiscal years 1996 and 1997 could not be completed within the
deadlines established by that staff. For that reason, the value of time for personnel being trained
in fiscal years 1996 and 1997 is understated.

‘See table 1.2 for a more detailed breakdown of the cost of training for DOE headquarters offices.

dSee table I.3 for a more detailed breakdown of the cost of training for DOE field offices.

eTravel costs are not included.

‘See table 1.4 for a more detailed breakdown of the cost of training for DOE contractors.

Source: DOE.




 6                                                      GAO/RCED-97-140R DOE’s Data on Training Costs
ENCLOSURE I                                                                                ENCLOSURE I
Table 1.2: Cost of Providina Trainino for DOE Headouarters Offices. Fiscal Years 199596


                                                               Average annual cost       Average annual
                               Annual cost of providing          of training per        training days per
                                      training”                     employee       1        employee
    Headquarters office    t     FY 1995         FY 1996       FY 1995     FY 1996     FY 1995     FY 1996
    Chief Financial            $160,100       $152,000            $582        $606           7              3
    Officer
    Civilian Radioactive        737,000         283,500          3,232       1,313           4              8
    Waste Management
    Congressional,                 3,781          1,905             33          18           5              1
    Public, and
    Intergovernmental
    Affairs
    Defense Programs           1,311,100      1,275,OOO          3,582       3,622           9              7
    Economic Impact               12,599          9,075            242         182           4              4
    and Diversity
    Energy Efficiency          1,606,990        336,420          2,472         646           7              5
    and Renewable
    Energy
    Energy Information          283,646         301,615            601         685           8              4
    Administration
    Energy Research              194,478        185,824            604         594           5              5

    Environmental              7,490,200      3,836,400        1O,OOob       5,795          10          10
    Management
    Environment,               8,361,OOO      6,020,OOO        18,498’     14,755c           7              2
    Safety, and Health
    Field Management                    0                 0          0           0           4              4
    Fissile Materials              4,839          5,000            255         250           3              1
    Disposition
    Fossil Energy              1,658,147      1,220,300          1,640       1,304           9              7
    General Counsel               42,190          9,500            199          49           2              2
    Hearings and                  97,147                  0      1,429           0           6              1
    Appeals


7                                                             GAO/RCED-97-140R DOE’s Data on Training   Costs
ENCLOSURE I                                                                          ENCLOSUFtE I

                                                        Average annual cost        Average annual
                          Annual cost of providing        of training per _       training days per
                                 training”                   employee                  employee
 Headquartersoffice          FY 1995        FY 1996      FY 1995     FY 1996     FY 1995     FY 1996
 Human Resources          7,224,206      5,040,900       6,708d       5,41 5d           4             3
 and Administration
 Inspector General          348,000        182,000        1,074          580          12              4
 Nonproliferation and    11,348,649     10,585,OOO      33,877”      30,41 7e           7              9
 National Security
 Nuclear Energy,             133,115       179,450          887        1,246            6              5
 Science, and
 Technology
 Policy                      160,342         75,000         794          421            5              6
 Quality                   2,035,332      1 ,140,094   185,030’     103,645’           18              6
 Management
 Total/overall average    $43,212,861    $30,838,983      $6,024       $4,733           7              5

“This is the cost of in-house training organizations and the cost associated with contracting for
training.

bAccording to DOE/Environmental Management staff, the average shown reflects three training
initiatives. One was to train 800 to 1,600 new employees departmentwide. Another was to
provide all Environmental Management staff departmentwide with three week-long courses on
project planning, baselining, and cost-estimating skills. A third was to design learning activities for
employees with responsibility for waste management, environmental restoration, and
environmental compliance.

“According to DOE/Environment, Safety, and Health staff, the averages shown include external
fellowships and grants (amounting to about $2.4 million in each of fiscal years 1995 and 1996),
contractor training initiatives, and the creation of an automated Environment, Safety, and Health
training infrastructure.

dThese averages represent the cost to train employees in the respective DOE element and
employees from other DOE headquarters and field office elements.

eAccording to DOE/Nonproliferation and National Security staff, the averages shown include the
cost of training federal employees and contractor employees departmentwide, as well as
employees from other agencies and students from other nations.

Source: DOE.


8                                                       GAO/RCED-97-140R DOE’s Data on Training       Costs
ENCLOSURE I                                                                         ENCLOSURE I
Table 1.3: Cost of Providina Trainina for DOE Field Offices, Fiscal Years 1995-96


                        Annual cost of providing   Average annual cost of   Average annual training
                                training*          training per employee      days per employee
    Field office          FY 1995        FY 1996     FY 1995      FY 1996     FY 1995      FY 1996
    Alaska Power         $46,000        $46,936      $1,643       $2,347            11          15
    Administration
    Albuquerque         2,782,OOO     I,81 2,000       1,789        1,239            7           8
    Operations Office
    Bonneville Power    2,087,122     3,178,OOO         637         1,007            7           5
    Administration
    Chicago              915,000        794,800        1,637        1,574           10          10
    Operations Office
    Golden Field            2,500              0          58            0            8          12
    Off ice
    Idaho Operations     681,100        482,100        1,524        1,162           13           9
    Off ice
    Nevada               878,769        642,000       2,247         1,754           12          15
    Operations Office
    Oak Ridge            779,000        907,000       1,064         1,348            6           6
    Operations Office
    Oakland              476,000        472,000        1,112        1,183            3           3
    Operations Office
    Ohio Field Office    202,000        502,000         927        2,183             9          10
    Pittsburgh Naval       19,000        27,000         241          370             3           3
    Reactors Office
    Richland            2,740,OOO     2,840,OOO       4,858        5,420            12          15
    Operations Office
    Rocky Flats Field   1,520,051     1 ,123,OOO      5,050        3,820            13          23
    Office
    Savannah River      3,501,OOO     3,324,400       5,884        5,812            15          10
    Operations Office
    Schenectady            38,900        36,200         598          548             5           4
    Naval Reactors
    Off ice

9                                                     GAOIRCED-97-14OR DOE’s Data on Training Costs
ENCLOSURE I                                                                           ENCLOSURE I

                         Annual cost of providing   Average annual cost of    Average annual training
                                training”            training per employee      days per employee
 Field office               FY 1995       FY 1996     FY 1995      FY 1996      FY 1995      FY 1996
 Southeastern               16,592        34,926         448          832              6            7
 Power
 Administration
 Southwestern              285,000       281,000        1,477        1,536             9            7
 Power
 Administration
 Western Area            1,606,737     1,508,OOO        1,141        1,168             8            7
 Power
 Administration
 Total/overall average   $18,576,771 $18,011,362        $1,702       $1,744            8            8

aThis is the cost of in-house training organizations and the cost associated with contracting for
training.

Source: DOE.




                                                                                                            ..




 10                                                     GAO/RCED-97-140R DOE’s Data on Training     Costs
ENCLOSURE I                                                                                               ENCLOSURE I
Table 1.4: Cost of Providina Trainina for DOE Contractors, Fiscal Years 1995-96

                                                                                                         Average annual
                                                                          Average annual cost of        training days per
                                 Annual cost of providing training*        training per employee             employee
  Contractors at                       FY 1995 I            M 1996        FY 1995 I       M 1996        FY 1995       FY 1996
  Albuquerque Operations         $37,391,000          $43,571,000          $1,599         $1,923              5             6
  Office
  Chicago Operations                8,061,400            7,674,OOO          1,072          1,069              6             6
  Office
  Civilian Radioactive              3,928,086            1,134,077          2,888          2,388              6             6
  Waste Management           I                  I                     I              I              !             !
  Fossil Energy                     1,980,084            2;309,800            943          1,167              4             4
  Golden Field Office                 638,000              224,000            727            356              2             1
  Idaho Operations Office          18,035,700           14,501,000          2,964          2,527            17              15
  Nevada Operations                 3,553,800            3,192,995            785          1,155              5             5
  Off ice
  Nonproliferation and                561,000              341,000          7,480          4,608              0             7
  National Security
  Oak Ridge Operations            46,049,OOO.           37,260,OOO          2,647          2,356              5             5
  Office                     I              I                         I              I              I             I
  Oakland Operations               14,366,OOO           13,451,500          1,495          1,476              6             6
  Off ice
  Ohio Field Office                10,350,000            7,196,OOO          2,417          1,926              7             3
  Pittsburgh Naval                    867,000              953,000            272            315              3             3
  Reactors Off ice
  Richland Operations             21,588,200            18,125,OOO          1,637          1,498              5             15
  Office
  Rocky Flats Field Office        20,833,OOO            11,373,ooo          4,666          3,218            13              6
  Savannah River                  41,291,ooo            47,585,600          s43            3,309            21              9
  Operations Office
  Schenectady Naval                   484,140              775,800            163            280              2             2
  Reactors Office
  Total/overall average           $229,977,410          $209,667,772        $1,966         $1,978             8              7

aThis is the cost of in-house training organizations and the cost associated with contracting for training.

Source: DOE.



11                                                                    GAO/WED-97-140R       DOE’s Data on Training          Costs
ENCLOSURE II                                                                ENCLOSURE II

                       SCOPE OF TRAINING CLASSES OFFERED BY DOE

  iponsoring element                        Examples of classes offered”
  Defense Programs (Headquarters)           Defense Nuclear Facilities Safety Board
                                             Overview
                                            Basis and Methods for Hazard Analysis
                                            DOE’s Interactions with DOD
                                            Operational Readiness Review Overview
                                            Unreviewed Safety Questions
  Environment, Safety, and Health           Accident Investigation Workshop
  Headquarters)                             Criticality, Safety, and Plutonium Accidents
                                            Environmental Compliance
                                            Fundamentals of Nuclear Operations
                                            Weapons Complex Overview
  Environmental Management (Headquarters)   Developing Your Employees and Yourself
                                            Environmental Chemistry
                                            Fundamentals of Waste Management
                                            Project Planning for DOE Managers
                                            Site RemediationKleanup
  iuman Resources and Administration        Basic Procurement
  IHeadquarters)                            Contract Law
                                            Effective Presentation Skills
                                            Managing Personal Growth
                                            Project Management Overview
  nteragency (Headquarters)                 Effective Listening and Memory
                                             Development
                                            Fiber Optics
                                            Leadership for a Democratic Society
                                            Mid-Career Retirement Planning
                                            Pre-Retirement Planning
  Quality Management (Headquarters)         Customer Service Training
                                            Quality Concepts and Practices
                                            Self-Assessment Workshop
                                            Seven Habits of Highly Effective People
                                            Team Effectiveness
  Vendor (Headquarters)                     Artificial Intelligence: The Hype and the
                                             Reality
                                            Communicating Compensation and Benefits
                                            Evelyn Wood Reading Dynamics for Busines
                                              Professionals
                                            Hazardous Waste Management
                                            Stress Management

 12                                            GAO/RCED-97-140R DOE’s Data on Training Costs
ENCLOSURE II                                                              ENCLOSURE II

 Sponsoring element                       Examplesof classes offered”
 Argonne National Laboratory              Biohazard Research ahd Development
                                          Chemical Waste Generator Training
                                          Electrical Safety Review
                                          Fissile Material Safety Training
                                          Intercultural Views of Animals
 EG&G Energy Measurements                 Back Care
                                          Defensive Driving
                                          Desert Tortoise Conservation
                                          Environmental Awareness
                                          Laser Safety Training
 Hanford Site                             Basic Motor Fundamentals
                                          Chemistry Fundamentals
                                          Driver Energy Conservation
                                          Facility Waste Sampling and Analysis
                                          Nuclear Physics
 Idaho National Engineering and           Asbestos New Regulation Awareness
 Environmental Laboratory                 Criticality Safety Refresher
                                          Export Control
                                          Fall Protection At-Risk Worker
                                          Hearing Conservation
 Lawrence Livermore National Laboratory   Cost Estimating Workshop
                                          Elements of Metallurgy
                                          Hazardous Waste Handling Practices
                                          Money Management
                                          Noise
 Lockheed-Martin    Energy Systems        Carcinogen Control Worker Training
                                          Defensive Driving on Nonpaved Surfaces
                                          Handling Classified Documents
                                          Respirator Training
                                          Technical Writing
 Los Alamos National Laboratory           Blood-Borne Pathogens
                                          Chemical Hazard Awareness
                                          English Refresher
                                          Hearing Conservation
                                          Nuclear Material Measurements
 Mound Laboratory                         Basic Tritium Training
                                          Explosive Safety Guidance Training
                                          Laser Hazard Awareness
                                          Root Cause Analysis Workshop
                                          Trash Awareness


13                                          GAO/RCED-97-140R DOE’s Data on Training   Costs
ENCLOSURE II                                                                      ENCLOSURE II

 sponsoring element                                Examplesof classes offereda
 \levada Test Site                                 Basic Health Physics -
                                                   Fundamentals of Engineering Review
                                                   Interviewing Skills
                                                   Radiation Worker Training
                                                   Smoking Cessation
 3ak Ridge Institute for Science and               Coping With Adolescents
 Education                                         Forklift Training
                                                   Gamma Spectroscopy
                                                   Occupational Internal Dosimetry
                                                   Radiological Worker
 Pantex Plant                                      Calibrate Environmental Chambers
                                                   Defensive Driving Course
                                                   Explosives Safety Refresher
                                                   Facility Security
                                                   Fire Protection
 Sandia National Laboratories                       Body Language in Technical Meetings
                                                    Chemical Carcinogens
                                                    DOE Plutonium and Tritium Technology
                                                     Overview
                                                    Effective Presentation Skills
                                                    Laboratory Spill Cleanup
 Savannah River Site                                Basic Criticality Training
                                                    Computer Security
                                                    Strategies to Cope With Burnout
                                                    Unarmed Self-Defense/Rape Prevention
                                                    Understanding Body Language in the
                                                     Interview/Interrogation Process

“According to a 1996 DOE training course database catalog, the Department had more than
12,000 different classes available for training its employees. For brevity, this enclosure shows
only examples of those classes.

Source: DOE.




14                                                     GAO/RCED-97-140R DOE’s Data on Training     Costs
ENCLOSURE III                                                                        ENCLOSURE III

          SIZE OF DOE TRAINING ORGANIZATIONS. END OF FISCAL YEAR 1996

Table 111.1: Size of Trainina Oraanizations for Selected DOE Offices. End of Fiscal Year 1996


                          Size of training staff (in   Number of employees in    Ratio of training staff
 Office                     full-time equivalentsr                     off ice           to employees
 Headquarters
 Defense Programs                                 6                      352                       I:59
 Environment, Safety,                           13                       408                       1:31
 and Health
 Energy Information                               2                      440                     I:220
 Administration
 Environmental                                  20                       662                       1:33
 Management
 Energy Research                                  1                      313                     I:313
 Fossil Energy                                    I                       198                    I:198
 Human Resources                                  2                      775                     I:388
 and Administration
 Field
 Albuquerque                                    23                      1,462                      -I:64
 Operations Office
 Chicago Operations                               5                      505                     1:lOl
 Office
 Idaho Operations                                 5                      415                       I:83
 Off ice
 Nevada Operations                              11                       446                       1:41
 Off ice
 Oak Ridge                                      15                       673                       1:45
 Operations Office
 Oakland Operations                               4                      399                     1:lOO
 Off ice
 Richland Operations                            20                       524                       1:26
 Off ice



15                                                       GAOIRCED-97-140R DOE’s Data on Training    Costs
ENCLOSURE III                                                                      ENCLOSURE III

                           Size of training staff (in Number of employees in    Ratio of training staff
 Office                      full-time equivalents)’                  office-           to employees
 Savannah River                                                         572                       I:29
 Operations Office

“The size of the training staff includes support contractor personnel who are providing assistance.

Source: DOE.




 16                                                     GAO/RCED-97-140R DOE’s Data on Training     Costs
ENCLOSURE III                                                                         ENCLOSURE III
Table 111.2:Size of Trainina Oraanizations for Selected DOE Contractors, End of Fiscal Year
1996

                             Size of training staff (in                           Ratio of training staff
 Contractors supporting         full-time equivalents)    Number of employees             to employees
 Hanford Site
 Bechtel-Hanford, Inc.                               3                    975                     1:325
 Pacific Northwest                                   9                  3,557                    1:395
 National Laboratory
 Westinghouse                                     187                   8,691                       I:46
 Hanford Company
 Idaho National Engineering and Environmental Laboratory
 Lockheed-Martin                                   85                   5,645                       I:66
 Idaho Technologies
 Company
 Oak Ridge Operations Office
 Lockheed-Martin                                  191                   9,945                       1:52
 Energy Systems
 Lockheed-Martin                                   30                   4,373                    I:146
 Energy Research
 Oak Ridge Institute                                 1                    479                    1:479
 for Science and
 Education
 Oakland Operations Office
 University of                                       4                  2,423                    I:606
 California, Lawrence
 Berkeley National
 Laboratory
 University of                                     90                   6,688                       I:74
 California, Lawrence
 Livermore National
 Laboratory
 Savannah River Site
 Wackenhut Services,                               42                     735                       I:18
 Inc.


17                                                        GAOIRCED-97-140R DOE’s Data on Training    Costs
ENCLOSURE LII                                                                     ENCLOSURE III

                          Size of training staff (in                           Ratio of training staff
 Contractors supporting      full-time equivalents)    Number of employees_            to employees
 Westinghouse                                  519                 t3,641                       1:26
 Savannah River
 Company

Source: DOE.




 18                                                     GAOIRCED-97-140R DOE’s Data on Training Costs
ENCLOSURE l-V                                                                  ENCLOSURE IV

            EXTENT TO WHICH TRAINING PLANS HAVE BEEN COMPLETED
                            FOR FISCAL YEAR 1996

Table IV.l: Percentaae of Emoloyees in Selected DOE Headauarters Offices Who Have
Comoleted an Individual Development Plan for Fiscal Year 1996


                                               Percentage of employees who have completed an
 Headquarters office                                               individual development plan
 Defense Programs                                                                            30
 Environment, Safety, and Health                                                             90
 Energy Information Administration                                                           25
 Environmental Management                                                                    30
 Energy Research                                                                             70
 Fossil Energy                                                                           20-30

Source: DOE.


Table IV.2: Whether an Annual Training Plan Has Been Completed bv Selected DOE
Headauarters Offices for Fiscal Year 1996

 Headquarters off ice                         Annual training plan completed
 Defense Programs                             No
 Environment, Safety, and Health              Yes
 Energy Information Administration            No
 Environmental Management                     No
 Energy Research                              No
 Fossil Energy                                No

Source: DOE.




19                                                 GAO/RCED-97-140R DOE’s Data on Training   Costs
ENCLOSURE V                                                                     ENCLOSURE V

     COMPARISON OF DOE’S AND INDUSTRY’S INVESTMENT IN TRAINING, 1995

                                                 Federal          Contractor            Industry
 Key indicator                                    (DOE)               (DOE)             average”
 Average number of training days                    7.8                 8.0                    4.0
 per year per employee
 Average investment in training                 $3,415              $1,966               $1,352
 per year per employee
 Annual investment in training as                 4.9%                3.2%               2.19%
 a percent of payroll
                                                                                                     d




Note: Data for DOE (federal and contractor employees) are for fiscal year 1995. Data for private
industry are for calendar year 1995. These data are the latest available for comparison.

aThe source for the industry average is the American Society for Training and Development’s
Benchmarking Forum. The Forum is a cooperative venture among 54 national and international
companies with strong commitments to employee training. Member companies include American
Telephone and Telegraph, Ford Motor Company, General Motors, and International Business
Machines.

Source: DOE except as noted.




20                                                    GAOAWED-97-140R DOE’s Data on Training    Costs
ENCLOSURE VI                                                                                        ENCLOSURE VI
                 COMMENTS FROM THE DEPARTMENT OF ENERGY



                                           Department        of Energy
                                                Washwtgton. DC 20585
                                                    May 1,    1997



       Victor S. Rezendes. Director
       Energy. Resources, and Science Issues
       U.S. General Accounting Ofice
       Washington. DC 20548

       Dear Mr. Rezendes:

       Thank you for the opportunity to work with your statt’and to comment on the General
       Accounting Office draft report entitled “Department of Energy: Training Cost Data for Fiscal
       Years 1995 Through 1997.” We are in general agreement with the information provided in your
       report however, we feel that it does not adequately characterize the improvements the
       Department has made in employee training and development and reducing costs during a time of
       major change. The following information provides some specific examples.

       During the period covered by this audit. the Department has transitioned its primary mission
       from nuclear weapons production to environmental restoration. In conjunction with this
       transition. the Department has made a concentrated effort to reengineer the training process to
       allow for a decrease in staff and costs while providing the people of the United States with a
       more efficient, safer, and streamlined operation.

       In May, 1995 a plan was developed to establish a corporate approach to improve the formulation
       and execution of training within the Department. Actions in the plan are aimed at improving
       coordination of training development and delivery. consolidation of training management,
       integration of training scheduling. and reduction in training program costs and staflhtg
       requirements.

       It is believed that continued implementation of this plan will result in the rightsizing of training
       stat% and budgets, a more unified approach to training employees, a reduction of duplication and
       overlap, and improved management of training and development activities across the
       Department.

       We are starting to see results from this streamlining process. In Fiscal Year 1994 the
       Department spent 861,789,632 on Federal employee training; by the end of Fiscal Year 1996. the
       expenditure was decreased to 848.850.345. This is a reduction of $12.939.287 or 20.9%. By the
       end of Fiscal Year 1997 we project decreasing cost by an additional $2,980,239 or 4.9%. As
       more of these goals reach ftdl implementation we expect even greater savings.

       Notwithstanding the overall reduction in training costs, the Department has been compelled to
       expend significant fbnds to upgrade the qualification of our technical employees. For example,
       we have had difficulty in the past in hiring, training, and retaining qualified people for our
       nuclear facility sites. A Defense Nuclear Facilities Safety Board (DNFSB) study in 1993
       outlined recommendations for improving the qualifications of our employees at nuclear sites and
       throughout the Department. In response to this recommendation we initiated a host of activities



21                                                           GAO/RCED-97-140R DOE’s Data on Training Costs
ENCLOSURE VI                                                                                          ENCLOSURE V-I




             that are designed to improve the qualifications and capabilities ofour Federal and contract
             employees.

             These activities did not come without a cost. Fiscal Year 1994 through Fiscal Year 1996 total
             Federal cmployce training and development costs directly linked to DNFSB activities was
             $18.747.477 of the $186.935.950 expended (or 10% of the total training and development costs
             for Federal employees). The cost for our contractor counterparts for the same period was
             $306.043.840 ofthe $691.838.03 1 expended (44%).

             I believe that with continued vig,ilance we will not only continue to decrease our training and
             development costs, but we will also increase the qualifications of our highly technical staff.

             Once again, I would like to thank you for the opportunity to participate in this audit and to
             comment on this draft report. Working with your staff has provided us with the opportunity to
             validate our training cost baseline which will be extremely use&l in determining how well we
             are meeting our cost saving goals. If 1 can be of further assistance. please do not hesitate to call.



                                                                     Archer L. Durham
                                                                     Assistant Secretary for
                                                                       Human Resources and Administration




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                                                                     GAO/WED-97-140B          DOE’s Data on Training Costs
  22
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