Most costs confirmed under B&W Y-12

Costs incurred and costs claimed were appropriately managed at the Y-12 National Security Complex by former contractor B&W Y-12, according to an assessment report released today by the Dept. of Energy’s Office of Inspector.bwy12

“Based on our assessment, nothing came to our attention to indicate that the allowable cost-related audit work performed by B&W Y-12’s Internal Audit could not be relied upon,” the IG report stated. “We did not identify any material internal control weaknesses with the cost allowability audit, which generally met the Institute of Internal Auditors International Standards for the Professional Practice of Internal Auditing.”

The IG looked at Fiscal Year 2013 and much of FY 2014 (until B&W was succeeded by Consolidated Nuclear Security on July 1, 2014), with a total of $1,030,375,777 incurred and $771,905,330 claimed. Most of the questioned costs by the contractor were resolved, with only $761 still under doubt.

The report indicated that B&W Y-12 also did audits of its subcontractors, and there were some greater figures involved, with about $1.5 million still questioned. An audit by the Defense Contract Audit Agency also found some questioned costs approaching half a million dollars, and those remain unresolved.

The IG recommended that the manager of the NNSA’s Production office direct his contracting officer as regards the allowability of the questioned costs and recover those amounts that are determined to be unallowable. The NNSA management agreed.

NNSA Administrator Frank G. Klotz, in a Sept. 25 letter to the IG, said the date for resolving the remaining cost issues is Dec. 30.

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About Frank Munger

Senior Writer Frank Munger covers the Dept. of Energy's Oak Ridge facilities and many related topics — nuclear weapons, nuclear waste and other things nuclear, environmental cleanup and science of all sorts. Atomic City Underground is, first and foremost, a news blog, but there's room for analysis, opinion and random thoughts that have no place else to go.