Federal Reports

At the request of the Tennessee Valley Authority’s (TVA) Supply Chain, we examined the cost proposal submitted by a contractor for (1) outage and supplemental maintenance and modification services and (2) support services at TVA’s nuclear plants.  Our examination objective was to determine if the cost proposal was fairly stated for a planned $975 million contract.

In our opinion, the cost proposal was fairly stated. Specifically, the proposed total noncraft labor burden rates for the recovery of indirect costs were supported by recent actual costs.  However, we determined the proposed noncraft wage ranges were not reflective of the actual salary costs for the contractor’s employees.  In addition, (1) the proposed rate schedule included a payroll tax rate even though the contractor indicated it could bill payroll taxes at actual costs and (2) the contractor did not propose a rate for long-term temporary assignments, as requested in the request for proposal.

The Office of the Inspector General and the Defense Contract Audit Agency (DCAA) have an interagency agreement whereby the DCAA provides contract audit services for the OIG. The DCAA is responsible for the audit and ensuring compliance with Generally Accepted Government Auditing Standards. The OIG’s responsibility is to distribute the report to U.S. Nuclear Regulatory Commission (NRC) management and follow up on agency actions initiated due to this report.
The DCAA audit report, dated January 30, 2025, and its supplemental audit report, dated April 9, 2025, did not identify any questioned costs. The OIG provided a copy of the report to NRC management, along with an NRC Form 518, Audit Report Tracking. NRC management is responsible for completing the form and returning it to the OIG.
This memorandum is being issued in connection with the contract closeout actions taken by the agency. While some time has passed since the supplemental report’s issuance, this memo serves to formally convey the audit’s key conclusions, ensure proper documentation of the audit trail, and support continued alignment among stakeholders.

OIG performed agreed-upon procedures to assess information reported to OPM by USDA’s NFC.

This report presents the results of the System and Organization Controls 1 Type 2 examination conducted in accordance with relevant attestation standards established by the American Institute of Certified Public Accountants for the United States Department of Agriculture’s (USDA) Financial Management Service (FMS) description of its financial systems used to process user entities financial transactions throughout the period October 1, 2024, to June 30, 2025. The report contains an unmodified opinion on the description and controls that were suitably designed to provide reasonable assurance that the control objectives would be achieved.

Top Management and Performance Challenges for Fiscal Year 2026