We audited $9.5 million of costs billed to TVA by a contractor for providing assistance in implementing a Power System Optimization Project. In summary, we found the contractor had overbilled TVA $234,406 including (1) $227,763 in overstated subcontractor costs and (2) $6,643 in unsupported subcontractor costs. The contractor acknowledged it had not billed in accordance with the contract provisions for subcontractors but stated the rates it had billed were (1) the same as those being charged to TVA by a previous supplier or (2) reasonable because the individuals were acting as employees of the contractor. Summary Only
Date Issued
Submitting OIG
Tennessee Valley Authority OIG
Other Participating OIGs
Tennessee Valley Authority OIG
Agencies Reviewed/Investigated
Tennessee Valley Authority
Report Number
2009-12558
Report Description
Report Type
Audit
Agency Wide
Yes
Questioned Costs
$0
Funds for Better Use
$0