The Steam Generating Team, LLC - Contract No. 11144

As part of our annual audit plan, we performed an audit of costs billed to the Tennessee Valley Authority (TVA) by the Steam Generating Team, LLC (SGT) for steam generator replacement services under Contract No. 11144. Our audit objective was to determine if costs were billed in accordance with the contract's terms. Our audit scope included approximately $35.9 million in costs paid by TVA from January 1, 2020, through January 31, 2022. In summary, we determined SGT overbilled TVA $1,903,315 including: $1,163,835 in ineligible overhead and fee markups applied to services, equipment, and other costs provided by TVA under the contract. $689,748 in labor costs, including: $685,880 for labor billing rates that exceeded adjusted rates that had been approved through the contract's change order process. In addition, we found the adjusted rates were never incorporated into the contract's pricing schedules. $1,304 for unsupported labor costs. $2,564 for ineligible labor costs. $38,579 in travel costs, including (1) $37,316 in duplicate costs and (2) $1,263 in ineligible costs. $11,153 in miscellaneous costs for ineligible subscription renewals. (Summary Only)