National Nuclear Security Administration: Improvements Needed for Overseeing Contractor Workforce Recruitment and Retention Efforts
Fast Facts
The National Nuclear Security Administration relies on management and operating contractors to help carry out the agency's mission, especially as its research, production, and modernization efforts increase.
NNSA's contractors have generally recruited and retained enough employees to meet staffing goals, but face challenges doing so. For example, NNSA has to approve contractors' requests to add some benefits—such as paid paternity leave—to their compensation packages. Contractors told us that the time for approvals can put them at a disadvantage in recruiting.
We recommended that NNSA take steps to address this and other issues we found.
Laboratories, Production Plants, and Testing Sites Included in the Nuclear Security Enterprise
Highlights
What GAO Found
Data from the National Nuclear Security Administration's (NNSA) management and operating (M&O) contractors show they generally met planned staffing levels in fiscal years 2018 through 2022. The data also show that attrition rates—the number of employees who left divided by total employees—are comparable to government rates. These rates spiked in fiscal years 2021 and 2022 during the COVID-19 pandemic when record numbers of people nationwide quit their jobs. Industry attrition rates are substantially higher but also include a larger employee population. M&O contractors cited challenges in recruiting and retaining employees, such as being able to offer competitive salaries and benefits. The contractors have taken steps to help address challenges. However, NNSA must review requests for changes to compensation or benefits that increase overall contract costs for cost reasonableness, and some contractor representatives cited the time it takes NNSA to review such requests as another challenge. NNSA officials aim to issue decisions about such requests within 60 days, but NNSA does not formally track review times. Such tracking would help NNSA determine if it is meeting its timeline or if it needs to adjust its review process.
M&O Contractor Attrition Rates Compared to Government Rates
To support its oversight, NNSA reviews information collected from M&O contractors. However, NNSA may be missing opportunities to use additional information that could inform its oversight of M&O contractors' recruitment and retention efforts. For example, NNSA does not collect information from exit surveys or time needed to fill certain positions—information that could help officials understand why contractors are requesting additional incentives. Fully assessing its information needs for oversight purposes could help NNSA improve its oversight of M&O contractors' recruitment and retention efforts.
Why GAO Did This Study
NNSA relies on M&O contractors to help execute the agency's nuclear security missions. These contractors collectively employ around 55,000 people across the nuclear security enterprise, which includes production plants and laboratories. In 2023, the NNSA Administrator testified on, and a congressional commission highlighted, challenges M&O contractors face with workforce recruitment and retention, including a limited applicant pool for technically skilled positions.
A House Armed Services Committee report includes a provision for GAO to review NNSA's M&O contractors' recruiting and retention efforts. This report examines (1) M&O contractors' achievement of planned staffing levels, recruitment and retention challenges, and efforts to address challenges, and (2) how NNSA oversees M&O contractors' recruitment and retention efforts.
GAO analyzed agency and contractor documentation and workforce data and interviewed NNSA officials and M&O contractor representatives about challenges and oversight.
Recommendations
GAO is making two recommendations for NNSA to (1) track the time it takes to review contractors' human resources requests and (2) fully assess and identify the information it needs to oversee M&O contractors' recruitment and retention efforts. NNSA concurred with both recommendations and stated it would take action to address them.
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| National Nuclear Security Administration | The Associate Administrator for NNSA's Office of Partnership and Acquisition Services should track the time it takes to review official human resources requests and use that information to determine if changes in its process are needed. (Recommendation 1) |
NNSA concurred with this recommendation. In its April 2024 response letter, NNSA indicated it will develop a list of management and operating (M&O) human resources requested to be tracked, including target processing timelines. In addition, NNSA said it will work with the M&O contractors to come to a mutual understanding of when NNSA's review officially begins and the factors that impact timing and key decisions. We will update the status of this recommendation when NNSA provides additional information on the actions taken.
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| National Nuclear Security Administration | The Associate Administrator for NNSA's Office of Partnership and Acquisition Services should fully assess and identify the information it needs to oversee M&O contractors' recruitment and retention efforts, including whether collecting additional information could inform its oversight efforts. (Recommendation 2) |
NNSA concurred with this recommendation. In its April 2024 response letter, NNSA indicated it will review recruitment and retention related information that M&O contractors provide to NNSA to identify the current set of data used for oversight. In addition, NNSA said it will work with M&O contractors to identify opportunities where other existing information can be leveraged to further enhance oversight efforts. We will update the status of this recommendation when NNSA provides additional information on the actions taken.
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