We performed an audit of the Tennessee Valley Authority’s (TVA) Contract No. 15387 with a company to provide a broad range of engineering, design, and construction management support when and as requested by TVA. The objective of our audit was to determine if the costs billed to TVA were in accordance with the contract’s terms. Our audit scope included approximately $33.2 million in costs billed to TVA between January 1, 2024, and March 31, 2025.
In summary, we determined the company overbilled TVA an estimated $33,595, including (1) 14,079 in unsupported and overbilled travel and temporary living allowance costs, (2) $13,764 in invoice and payment errors, (3) a net $3,632 in performance fee credits, and (4) $2,120 in labor costs. In addition, we identified opportunities for TVA to improve the administration of the contract. Specifically, (1) the contract was unclear on how the company was to bill temporary employees it received from staffing agencies and (2) TVA did not evaluate fee for all tasks greater than $50,000, as required by the contract.
