October 14, 2026
Battelle Energy Alliance, LLC’s Costs Incurred and Claimed for Fiscal Years 2022 and 2023 Under Contract No. DE-AC07-05ID14517
This audit was performed by the Department of Interior, Interior Business Center (DOI IBC), on behalf of the Department of Energy Office of Inspector General. DOI IBC audited Battelle Energy Alliance, LLC’s (BEA) costs incurred and claimed for fiscal years 2022 ($1.63 million); and 2023 ($1.82 million) at Idaho National Laboratory, under Department of Energy management and operating contract No. DE-AC07-05ID14517.
The audit’s objective was to determine if costs charged to Department contract No. DE-AC07-05ID14517 for fiscal years 2022 and 2023 were allowable, allocable, and reasonable in accordance with contract terms, applicable laws, and regulations.
DOI IBC performed the audit in accordance with generally accepted government auditing standards.
DOI IBC questioned almost $5 million of education costs contained within the Fringe pool for fiscal years 2022 and 2023 and a net of approximately $700,000 in Safeguards and Security pool costs. Additionally, DOI IBC questioned over $30.5 million in proposed award fee amounts in the General and Administrative pool. The award fees represent a contractual incentive paid by the Department and were questioned by DOI IBC because BEA included the fee as a cost in the General and Administrative pool. DOI IBC reconciled the proposed award fees to the general ledger, and the amount of fee the Department determined that BEA was entitled.
The Office of Inspector General recommends that the contractor coordinate with the contracting officer to address the questioned 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.
BEA nonconcurred with the findings and questioned costs. DOI IBC reviewed the contractor’s response but maintained its position related to each finding and associated questioned cost.