in losses from a private-contract job

"losses" stands for money spent without result. This means that money was paid to a contractor who did not deliver paid for services.

Thanks.
I still don't get "It projects millions of dollars in losses from a private-contract job to upgrade a steam power plant".

The government hired an outside (non-government) company to do upgrades to a power plant. That firm billed the government and either did not do the work or did it incorrectly. The government lost the money and still doesn't have an upgraded power plant. When it says it "projects" it means the government doesn't have the actual number yet. "Projects" means "estimates". Does that help?

It helps.
It is the word "project" that was the trouble maker.
Thank you.