TVA’s Cumberland Energy Solution Project

The Office of the Inspector General determined the Cumberland Energy Solution project complied with most elements of scope management and the bid process. However, we identified certain areas under each process that need improvement to help mitigate potential Tennessee Valley Authority (TVA) risk. In summary: • TVA’s Cybersecurity, a business unit under TVA’s Technology and Innovation business unit, was not included as a stakeholder throughout the project. • TVA did not adequately mitigate risks related to the use of equipment from nondesignated countries. Specifically, - Cybersecurity concerns related to the use of equipment from a nondesignated country had not been evaluated. - Some procurements were not evaluated for compliance with the Trade Agreements Act. • The Cumberland Energy Solution project risk register could be improved related to (1) project staffing and (2) gas pipeline construction. • TVA’s contract pricing strategies may cause TVA to pay inflated costs.