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OIG: The Navy Needs More Comprehensive Guidance for Evaluating and Supporting Cost‑Effectiveness of Large‑Scale Renewable Energy Projects

August 1, 2016

Pursuit's Take

 

Navy personnel conducted cost‑effectiveness assessments for the three U.S. Pacific Command large-scale renewable energy projects included in our audit: Solar Multiple Award Contract (Hawaii), Guam Photovoltaic Renewable Energy, and West Loch Photovoltaic Power (Hawaii). However, Navy personnel could not provide adequate documentation to support the assumptions and calculations made in their assessments. Without that documentation, we could not determine the accuracy of the assessments.

Navy personnel could not support the assumptions and calculations made in their assessments because Navy guidance does not include specific steps for evaluating the cost‑effectiveness of renewable energy projects and does not require that supporting documentation be maintained. As a result, the Navy lacks assurance that cost‑effectiveness assessments for its large‑scale renewable energy projects are accurate, and that appropriate investment decisions are made. Report.

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