Fuel Fabrication Services

We audited $32.7 million of costs billed to TVA by a contractor providing reload fuel fabrication services for Browns Ferry Nuclear Plant and determined TVA had been overbilled $5,545 due to the contractor's use of overstated hours and incorrect labor rates. Additionally, the contract did not have a formal authorization process for certain services to be performed by the contractor and the contractor could not provide documentation of TVA's authorization for some of the services it had billed TVA. The contractor agreed to credit TVA for the overbilled amount. TVA management agreed with our findings and is (1) reconciling the deliverables it received with the compensation paid for the services in question and (2) issuing a contract supplement to confirm how work will be released under the contract. Summary Only