This audit was performed by the Defense Contract Audit Agency (DCAA) on behalf of the Department of Energy’s Office of Inspector General and examined Jefferson Science Associates, LLC’s (JSA) costs incurred and claimed for fiscal years 2022 and 2023 at the Thomas Jefferson National Accelerator Facility, under management and operating contract No. DE-AC05-06OR23177.
The audit’s objective was to determine if costs charged were allowable, allocable, and reasonable in accordance with applicable laws, regulations, and contract terms.
The DCAA performed the audit in accordance with generally accepted government auditing standards.
The DCAA identified one audit finding and questioned approximately $6.3 million in performance award fees included in the General and Administrative pool. The performance fees represented a contractual incentive paid by the Department and were questioned by the DCAA because JSA included the fee as a cost in the General and Administrative pool. The DCAA reconciled the proposed fee amount to performance evaluation reports, and the Department determined that the contractor was entitled to the earned fee.
If the issue identified by the DCAA are fully addressed, it should help ensure that costs charged to the Department are allowable, allocable, and reasonable in accordance with contract terms. We recommend that the contractor coordinate with the contracting officer to resolve the questioned costs identified in this report.
