The company that manages the Savannah River Site in South Carolina approved $8.5 million worth of improper invoices from one of its subcontractors from October 2014 to June 2016, according to a new Department of Energy audit. That amount, which includes filings for information technology goods and services, represented 95 percent of the $9 million in invoices submitted by the contractor during that period.
In addition, Savannah River Nuclear Solutions (SRNS) failed to close out 10 subcontracts, worth a total of $17 million, in that same timeframe, with closeout delays ranging from six months to two-and-a-half years.
These and other issues were highlighted in the 10-page audit, dated May 8, from the DOE Office of Inspector General. The IG conducted the audit from June 2016 to March 2019, reviewing invoices and other files from the 21-month span. Auditors found various issues in SRNS’ dealings with subcontractors. The company is tasked with purchasing quality products at reasonable prices.
From Oct. 1, 2014, to June 30, 2016, Savannah River Nuclear Solutions received more than $606 million in goods and services through its subcontracts. But auditors said the contractor did not properly acquire some of those goods due to inadequate invoicing, lack of cost-efficient purchases, and failing to close out subcontracts in a timely manner.
One subcontractor, Virginia-based FOUR LLC, submitted nine invoices in the sample time frame that totaled $9 million. FOUR provides information technology products, but the audit does not detail what specific items were delivered to SRNS.
Savannah River Nuclear Solutions approved $8.5 million worth of those invoices, even though they did not include unit prices – a unit of measure that would help determines the cost-effectiveness of the purchases, according to the audit.
The IG recommended that SRNS review those $8.5 million in invoices and provide workers with training on filing proper invoices and determining unit prices for materials. In an attached memorandum, Energy Department SRS Manager Michael Budney said the site is working with the contractor to meet these goals.