Subcontracted Engineering Services

We reviewed $64.5 million of costs billed to TVA by a contractor for subcontracted engineering services performed at Browns Ferry Nuclear Plant Unit 1. We determined TVA had been over billed $34,958. The overbilling included (1) $20,243 of temporary living allowance (TLA) payments that had not been approved by TVA, (2) $8,019 of relocation payments made to an employee who had already been paid to relocate to BFN by another contractor, (3) $3,623 of travel expenses that were either ineligible, over contractual limits, or should have been included in overhead, and (4) $3,073 of fees that should have been credited back to TVA. The contractor subsequently credited TVA for the $3,073 of fees. TVA management is planning to review the TLA certifications to determine if retroactive approval is justified and to recover any payments associated with unapproved certifications. Management is reviewing the remaining findings to determine the action it plans to take. Summary Only