Nuclear Engineering Services

We audited the costs billed to TVA by a contractor for providing professional engineering and technical support services associated with the restart of Browns Ferry Nuclear Plant (BFN) Unit 1. Our audit, which included $110 million of payments TVA made to the contractor from June 2004 through October 2007, found the contractor had overbilled or not credited TVA an estimated $276,484 for (1) home office labor and related costs that should have been covered by the contractor's overhead rate, (2) certain miscellaneous labor costs and markups that were not allowable, (3) unspent employee recognition costs, (4) home office computer and facility charges for some employees who did not meet the contract eligibility requirements, and (5) overbilled provisional payroll taxes and insurance. Additionally, we found that changes TVA made to the contract resulted in TVA paying $343,548 in excessive paid time off costs for certain contractor personnel assigned to the BFN Unit 1 project. Summary Only