Williams Plant Services, LLC - Contract No. 5487

As part of our annual audit plan, we audited costs billed to the Tennessee Valley Authority (TVA) by Williams Plant Services, LLC (WPS) for providing indirect support services for Watts Bar Nuclear Plant Unit 2 start-up. Our audit included $104.3 million in costs paid by TVA between January 1, 2013, and August 31, 2015. Our audit objective was to determine if the costs WPS billed to TVA were in accordance with the terms of Contract No. 5487. In summary, we found WPS overbilled TVA $4,376,936 as follows:$3,458,285 in labor costs were overbilled due to the use of labor classifications not provided for in the contract.</li> $430,322 in labor costs were overbilled, including (1) $42,921 in excessive nonmanual labor wage rates, (2) $17,417 in overbilled nonmanual labor markups, (3) $353,804 in ineligible craft labor overtime costs, and (4) $16,180 in unsupported labor costs and excessive craft labor costs due to misclassifications.</li> $435,624 for ineligible and unsupported temporary living allowances and travel costs.</li>$52,705 for ineligible material and fitness for duty costs.</li>In addition, we found WPS did not provide labor classifications for $20,458,040 in nonmanual employee labor costs when it billed TVA. Accordingly, TVA could not validate if the labor classifications were eligible for reimbursement or determine if the wage rates that were billed were within the ranges specified in the contract for each labor category.(Summary Only)