Review of Hydro Automation Contract

We audited $3.9 million of costs billed by a TVA contractor who provided engineering, materials, and installation support for automating TVA's hydro system. We found TVA was billed $380,000 for costs and associated fees that were either excessive, unsupported, or not in accordance with the contract. The overbillings included excessive labor markups, unsupported labor costs, unallowable or unsupported travel costs, excessive facility rental costs, duplicate billings, overstated retroactive billing adjustments, and fees. Summary Only