Audit: DOE-OIG-26-38

June 1, 2026

Additional Action Would Assist the Advanced Research Projects Agency - Energy Fulfill the U.S. Manufacturing Requirement

Authorized in 2007, the Advanced Research Projects Agency - Energy (ARPA-E) is a semi-autonomous agency within the Department of Energy, created to enhance the economic and energy security of the United States. Since its inception, ARPA-E has provided $4.21 billion in research and development funding to more than 1,700 projects designed to disrupt and create major shifts in the energy industry to the benefit of the U.S. In accomplishing its mission, ARPA-E funds projects in line with the U.S. manufacturing (USM) requirement, which stipulates that awardees substantially manufacture any products or processes created using Federal funds, also known as subject inventions, within the U.S.

Given the importance of the USM requirement to our national interests, we initiated this audit to determine whether ARPA-E was effectively implementing the domestic manufacturing requirement.

We found that ARPA-E could improve its oversight processes to more effectively implement the domestic manufacturing requirement. Specifically, we found that ARPA-E did not always perform site visits, as required. Further, we found that ARPA-E did not validate self-reported utilization data.

These issues occurred, in part, because ARPA-E did not always follow its policies and guidance. Further, APRA-E's policies and guidance were limited, as it did not establish criteria for deviation from site visit expectations or prescribe documentation requirements. In addition, ARPA-E lacked policies and procedures for officials to validate utilization data related to disclosed subject inventions.

Without consistently performing and documenting site visits or validating utilization data, ARPA-E is unable to consistently apply oversight procedures related to the USM requirement.

To address the issues identified in this report, we made one recommendation that, if fully implemented, should help ensure that ARPA-E awardees are complying with the USM requirement.

• DOE-OIG-26-38.pdf (1.17 MB)