Audit: DOE-OIG-26-27

March 26, 2026

Jefferson Science Associates, LLC’s Costs Incurred and Claimed for Fiscal Years 2019 and 2020 Under Contract No. DE-AC05-06OR23177

This audit was performed by CohnReznick LLP (CohnReznick) on behalf of the Department of Energy’s Office of Inspector General and examined Jefferson Science Associates, LLC’s (JSA) costs incurred and claimed for fiscal years 2019 and 2020 under management and operating contract No. DE-AC05-06OR23177.

The audit’s objective was to determine if costs charged to Department contract No. DE-AC05-06OR23177 for fiscal years 2019 and 2020 were allowable, allocable, and reasonable in accordance with applicable laws, regulations, and contract terms.

CohnReznick performed the audit in accordance with generally accepted government auditing standards.

CohnReznick questioned approximately $650,000 in costs for purchases identified as direct material and for costs included in the Material and Handling, General and Administrative, and Facilities/Infrastructure pools. CohnReznick also identified two deficiencies in JSA’s internal controls related to inadequate subcontract monitoring and the failure to remove unallowable costs and maintain an adequate purchasing system. CohnReznick also reported approximately $8.9 million in unresolved costs related to pending investigations at the time of the audit.

CohnReznick made two recommendations. Additionally, we recommend that the contractor coordinate with the contracting officer to address the questioned and unresolved costs identified in this report. If the issues identified are fully addressed, it should help ensure that costs charged to the Department are allowable, allocable, and reasonable in accordance with contract terms.

JSA nonconcurred with how the questioned costs were calculated. JSA withheld further comment pending negotiations with the contracting officer.