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.

Top Management and Performance Challenges for Fiscal Year 2026

Under the Occupational Safety and Health Act of 1970, the U.S. Postal Service is obligated to provide its employees with a safe and healthy place to work. The Postal Service proactively meets this obligation by implementing policies, procedures, special teams, and reporting tools related to workplace violence at facilities. The established zero-tolerance policy for workplace violence outlines that no employee should have to work in an atmosphere of fear and intimidation and the organization will address every threat or act of inappropriate behavior with an immediate and firm response. These threats or acts can result in corrective action up to removal from the Postal Service. 

OIA did not ensure Insular Areas complied with regulations. Single audits were late, and not all Insular Areas submitted FY 2022-2023 reports. 

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.