Review of Supply Chain's Controls Over Contract Documents

In 2007, TVA issued a procedure to ensure consistancy in the tracking and handling of contract documents and associated files across TVA. The procedure established a standard method to be used by all TVA organizations for the storage and retrieval of contract documentation in Contracts Central, TVA's repository for contract records.We conducted an audit of Supply Chain's centralized handling of contract documents to assess and determine compliance with the policy, We found Supply Chain was not in compliance with TVA' s policies regarding the use of Contracts Central. Specifically, our review of 225 contracts found only 120 contracts (53.3 percent) were available in Contracts Central. Although we identified several technical reasons for Supply Chain's noncompliance with TVA's policy, overall, it appeared many Contract Managers and Procurement Agents did not understand the importance of having contract documents located in a centralized location. Additionally, we found TVA's original Contracts Central policy had been superseded and much of the pertinent guidance and specific policy information had been ommitted.TVA management agreed with our findings and plans to (1) reinforce the importance and benefits of Supply Chain's use of Contracts Central, (2) correct various technical deficiencies identified, and (3) provide training and enhanced guidance on the handling of contract documents.