Welding Services for Fossil & Hydro Projects

We audited $12.4 million of costs billed to TVA by a contractor for performing welding services for fossil and hydro projects. In summary, we found TVA had been overbilled $539,194 for (1) labor costs due to unsupported records and the contractor's use of incorrect labor rates; (2) mobilization, travel, and per diem costs that were ineligible or billed at incorrect rates; (3) duplicate costs and invoice calculation errors; (4) equipment costs due to the contractor's use of incorrect billing rates; and (5) unsupported costs. TVA management (1) has instructed the contractor to provide any additional or clarifying documentation to support its billings and (2) is planning to recover any overbilled and unsupported costs. Summary Only