Welding Services Contract

We audited $4.27 million of costs billed to TVA by a contractor for providing preemptive full structural weld overlays on Sequoyah Nuclear Plant Units 1 and 2. In summary, we found the contractor billed TVA $320,700 in unsupported and ineligible costs including (1) $271,200 of unsupported delay costs, and (2) $49,500 of ineligible billings for the cleaning and handling of equipment that was contaminated before it was shipped to TVA. We recommended TVA management recover $320,700 in unsupported and ineligible costs from the contractor. Summary Only