Accenture Federal Services LLC - Contract No. 14910

The Office of the Inspector General audited costs billed to the Tennessee Valley Authority (TVA) by Accenture Federal Services LLC (AFS) under Contract No. 14910. AFS provides enterprise architecture and information technology infrastructure services to TVA under the contract. The contract provided that work could be performed using time and material or fixed price payment terms as agreed by the parties in purchase orders (PO). Our audit objectives were to determine (1) if AFS billed TVA in accordance with the contract's terms and (2) the reasonableness of TVA's process for evaluating proposed fixed price tasks issued under the contract. Our audit scope included approximately $64.9 million in costs billed to TVA by AFS from the inception of the contract, March 25, 2020, through October 27, 2022. All costs billed to TVA by AFS during our audit scope were for fixed price projects. We determined the fixed price POs were billed in accordance with the milestone payment schedules that had been authorized in the POs. However, we determined TVA did not have a process in place to determine the reasonableness of the fixed prices it paid to AFS. Specifically, TVA Supply Chain did not: Compete the fixed price tasks among similar vendors although it had informed TVA senior management it intended to do so; or Obtain detailed breakouts of AFS's fixed price proposals to determine the reasonableness of the prices. A contract technical steward in TVA's Technology and Innovation business unit informed us TVA relied on AFS's assertions that the fixed prices had been built up and calculated using the contract's pricing schedule. However, no validation of AFS's assertions were performed. (Summary Only)