Contract for Modification and Maintenance Services

We reviewed $615.5 million TVA paid a contractor from 1999 through 2004 for providing modification and supplemental maintenance services for TVA's fossil plants. We questioned $833,655, including (1) payroll taxes and G&A costs where recovery rates for these costs had been applied to non-salary costs, (2) additional G&A costs where craft employees had been classified as nonmanual craft supervisors, and (3) temporary living allowance payments for employees who may not have been eligible to receive the payments because they did not have adequate certifications and documentary evidence of permanent residences. TVA is (1) planning to recover any overbilled costs and (2) assessing our finding regarding the contractor's classification of craft employees as nonmanual craft supervisors. Summary Only