Review of Non-Compete Contracts

We conducted a review of 52 TVA non-compete contracts to determine whether non-competed contracts are issued and administered in compliance with TVA policies and procedures, including assessing the justification for the non-competed contract award. We found: Two contracts could not initially be located for review and seven did not have Form17388 and/or the appropriate notification/approval required by TVA policies and procedures. Form17388 is required with the appropriate signatures and justification for the contract. Three of the contracts reviewed did not appear to have an appropriate justification as outlined in Section9(b) of the TVA Act and INSTRUCTION1, Business Practice9, Implementing Procedures. Multiple contracts not governed by BP9 are classified under a justification in PassPort that does not apply to the contract. Management generally agreed with our findings and recommendations and is taking or plans to take corrective action.