July 14, 2026
Brookhaven Science Associates, LLC’s Costs Incurred and Claimed for Fiscal Years 2017 Through 2019 Under Contract No. DE-SC0012704
This audit was performed by CohnReznick LLP (CohnReznick) on behalf of the Department of Energy Office of Inspector General. CohnReznick audited Brookhaven Science Associates, LLC’s (BSA) costs incurred and claimed for fiscal years (FY) 2017, $550,771,280; 2018, $545,842,664; and 2019, $587,535,877 at Brookhaven National Laboratory, under management and operating contract No. DE-SC0012704.
The audit’s objective was to determine if costs charged to Department contract No. DE-SC0012704 for FYs 2017 through 2019 were allowable, allocable, and reasonable in accordance with contract terms, applicable laws, and regulations.
CohnReznick performed the audit in accordance with generally accepted government auditing standards.
CohnReznick identified over $20 million in questioned costs. Of these questioned costs, $8,157,155 were related to unallowable telephone costs for FYs 2017 through 2019, and $11,945,628 were related to unallowable credit card purchases for FYs 2017 and 2018. Additionally, CohnReznick questioned $206,365 of FY 2019 costs related to the National Synchrotron Light Source II proprietary user rate. CohnReznick also identified one control deficiency related to inadequate maintenance of documentation to support claimed costs. Further, CohnReznick considered $89,588,354 in subcontractor costs unresolved pending audit.
CohnReznick made one recommendation. The Office of Inspector General also recommends 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.
BSA nonconcurred with the retention requirements regarding the length of time documentation must be maintained prior to disposal. BSA also nonconcurred with the finding related to the National Synchrotron Light Source II questioned costs and withheld further comment pending discussions with the contracting officer. CohnReznick maintained its position related to the control deficiency that resulted in nearly all questioned costs.