Audit Report: Home Office Expenses Submitted by Fluor Federal Services, Inc., on Savannah River Nuclear Solutions, LLC's U.S. Department of Energy Management & Operating (M&O) Contract No. DE-AC09-08SR22470 [open pdf - 492KB]
"The attached report presents the results of an audit of home office expenses submitted by Fluor Federal Services, Inc. (Fluor) through invoices to Savannah River Nuclear Solutions, LLC, (SRNS) for loaned employees working on the Management and Operating (M&O) contract. The Department of Energy (Department) awarded M&O Contract No. DE-AC09-08SR22470 to SRNS, a for-profit joint venture, established between Fluor, Newport News Nuclear, Inc., and Honeywell International. SRNS commenced performance on the M&O contract on August 1, 2008. Fluor has a majority share in the joint venture. The Office of Inspector General contracted with an independent certified public accounting firm, KPMG, LLP (KPMG), to assess the accuracy and completeness of the results and conclusions reported by SRNS Internal Audit on its 'Corporate Reachback Floor Check Review' of invoices for loaned employees from Fluor. KPMG was also tasked with performing additional testing on an invoiced Fluor 'loaned employee' to determine whether home office expenses were included in the invoiced costs, and if so, quantify the amount of questioned costs. The SRNS contract, Clause H-20, entitled 'Home Office Expenses', states 'Home office expenses, whether direct or indirect, relating to activities of the Contractor are unallowable, except as otherwise specifically provided in the Contract or specifically agreed to in writing by the Contracting Officer consistent with DEAR 970.3102-3-70.'"
Department of Energy, Office of Audits and Inspections, OAS-L-13-08
United States Department of Energy: http://energy.gov/