Review of Contract for Providing TVA Retirees to Provide Assistance to the Federal Emergency Management Agency

We audited $18.6 million of payments TVA made to a contractor for providing the services of TVA retirees to provide engineering and technical assistance to the Federal Emergency Management Agency for major disasters and emergencies. We found the contractor had overbilled TVA an estimated $149,584 for labor, travel, miscellaneous costs, and administrative fees. Additionally, we noted control deficiencies regarding the authorization and payment of costs by the contractor and TVA. The contractor stated it (1) concurred with our conclusions and recommendations but is continuing to find documentation that should reduce the overbilled amount and (2) has instituted controls regarding payments to employees and subsequent billing of costs to TVA. Summary Only