The Steam Generating Team, LLC - Contract No. 11144 - Craft Labor and Project Closeout

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 for steam generator replacement services under Contract No. 11144. Our audit objective was to determine if the craft labor and project closeout costs billed to TVA under Contract No. 11144 for steam generator replacement services were in accordance with the contract's terms. Our audit scope included about $29.2 million in craft labor costs billed to TVA from February 1, 2022, through March 31, 2023. In addition, we limited our review of project closeout costs to TVA's total project fee amount of $23 million. In summary, we determined the project closeout fee was billed in accordance with the contract's terms. However, we determined The Steam Generating Team, LLC, overbilled TVA $386,227 in craft labor costs, including (1) $361,467 in ineligible workers compensation insurance costs, (2) $20,635 in ineligible craft incentive bonus costs, and (3) $4,125 in unsupported craft labor costs. (Summary Only)