We performed an audit of costs billed to the Tennessee Valley Authority (TVA) by Facilities Technology Alliance LLC (FTA) under Contract No. 15664 for staff augmentation electrical and telecommunication services. Our objective was to determine if costs were billed in accordance with the contract’s terms. Our audit scope included $15.1 million in costs paid to FTA from March 6, 2023, through February 28, 2025.
In summary, we determined FTA overbilled TVA $187,600, including (1) $69,790 in fuel and oil costs not provided for in the contract, (2) a net $65,805 due to duplicate and incorrectly billed invoices, (3) $48,257 in overbilled labor costs, and (4) $3,748 in unsupported travel costs. In addition, we found the contract’s pricing schedule did not include FTA’s billing rates. Without billing rates, TVA’s field invoice approvers do not have sufficient information to effectively review invoices.
