Airgas USA, LLC - Claim For Missing Gas Cylinders - Contract Nos. 5436 and 5456

In response to a referral from the Office of the Inspector General (OIG), Investigations, we audited a claim for missing gas cylinders submitted to the Tennessee Valley Authority (TVA) by Airgas USA, LLC (Airgas) under Contract Nos. 5436 and 5456. Under the contracts, Airgas was to manage inventory of industrial gases for TVA, including furnishing, selling, and delivering all bulk gases and related products and services to TVA. On February 2, 2021, Airgas submitted an $891,340 claim to TVA for missing gas cylinders resulting from inventory counts Airgas performed at TVA delivery locations in 2018. Our audit objective was to determine if Airgas' claim for missing gas cylinders complied with the contracts' terms and was accurate. In summary, we determined Airgas' February 2, 2021, claim for $891,340 related to missing gas cylinders was not valid. Specifically, we found Airgas (1) did not comply with the contracts' criteria related to the frequency of inventory audits and loss of use allowances and (2) did not provide documentation supporting that the claimed missing gas cylinders were billed and delivered to TVA. (Summary Only)