Subcontract Services

As part of our annual audit plan, we audited $5.2 million in costs billed to TVA by a contractor for subcontract services provided on the Browns Ferry Nuclear Plant Unit 1 (BFN U1) recovery project. Under its subcontract, the subcontractor provided engineers for the BFN U1 project to assist in the resolution of technical issues developed during the field implementation of modifications. Our audit objective was to determine if the costs the contractor billed to TVA were in compliance with the provisions of the contract and the subcontract. In summary, we determined the contractor billed TVA $25,331 for costs that were not in accordance with the contract provisions. TVA management plans to recover the overbilled costs. Summary Only