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Brought to you by the Council of the Inspectors General on Integrity and Efficiency
Federal Reports
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Department of Justice
Informe semestral al Congreso 1 de abril 2024 – 30 septiembre de 2024
Texas Generally Claimed Medicaid Reimbursement for Fee-for-Service Inpatient Hospital Claims With Malnutrition Diagnosis Codes in Accordance with Federal and State Requirements
The Inspector General Act of 1978 requires the Inspector General to prepare semiannual reports summarizing the activities of the Office of Inspector General for the preceding six-month period. The semiannual reports are intended to keep the Secretary and Congress fully informed of significant findings, progress the Agency has made, and recommendations for improvement.
At the request of the Tennessee Valley Authority (TVA) Supply Chain, we examined the contractor’s cost proposal for work in connection with the validation phase of TVA’s Small Modular Reactor and Clinch River Nuclear project. Our examination objective was to determine if the cost proposal was fairly stated for a planned contract with expenditures up to $25 million.
In our opinion, the cost proposal was overstated. Specifically, the proposed total markup rate for recovery of indirect costs was overstated compared to recent actual costs. We estimated TVA could avoid approximately $2.02 million over the planned $25 million by negotiating revised markup rates to more accurately reflect the contractor’s recent actual costs for 2022 and 2023. Subsequently, the contractor stated it would prefer to use its 2024 provisional total markup rate, which was lower than recent actual costs for 2022 and 2023. We estimated TVA could save an additional $473,000 by negotiating for the 2024 provisional total markup rate for a total cost avoidance of $2.49 million over the potential $25 million contract spend. In addition, we identified opportunities to clarify the draft contract language.
At the request of the Tennessee Valley Authority’s (TVA) Supply Chain, we examined the cost proposal submitted by a company for engineering and construction services in connection with the validation phase of TVA’s Small Modular Reactor and Clinch River Nuclear project. Our examination objective was to determine if the company’s cost proposal was fairly stated for a contract with expenditures up to $25 million.
In our opinion, the company’s cost proposal was overstated. Specifically, the proposed hourly indirect cost recovery rates for the company’s overhead costs and technology costs were overstated compared to recent actual costs. We estimated TVA could avoid approximately $749,000 over the potential $25 million contract by negotiating reduced hourly indirect cost recovery rates to more accurately reflect the company’s recent actual costs. In addition, we also noted some opportunities to clarify the draft contract language.
