Contract for Nuclear Steam Supply System Refueling and Inspection Services

May 5, 2026

2025-17573

Audit

We performed an audit of costs billed to the Tennessee Valley Authority’s (TVA) by a contractor for nuclear steam supply system refueling and inspection services at TVA’s Watts Bar Nuclear Plant and Sequoyah Nuclear Plant.  The contract provided for TVA to compensate the contractor on a time and material or fixed price basis in accordance with the contract’s pricing schedule.  In addition, the contract provided that (1) outside personnel used for craft labor would be reimbursed at the contractual TVA Project Maintenance and Modification Agreement rates plus an administrative fee, and (2) TVA was to pay the contractor performance fee based on a performance metric program containing bonuses, incentives, and reductions in compensation.  Our audit objective was to determine if costs billed to TVA were in accordance with the contract’s terms.  Our audit scope included approximately $42.5 million in costs billed to TVA from January 1, 2023, through May 31, 2025. In summary, we determined the contractor overbilled TVA $1,386,951, including (1) $787,862 in overbilled subcontractor, travel and living, labor, and equipment costs; (2) $136,411 for performance fee not earned; (3) $130,383 due to provisional escalation costs that were not trued-up to actual; (4) $322,397 in unsupported costs; and (5) $9,898 in invoice and payment errors.

No

Yes (agency-wide)

$0

$0