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Brought to you by the Council of the Inspectors General on Integrity and Efficiency
We audited $314.9 million of costs billed to TVA by G-UB-MK Constructors for modifications and supplemental maintenance work at TVA fossil and hydro plants and other TVA-controlled facilities. In summary, we determined G-UB-MK's billings to TVA complied with the terms of the contract except for $3,783 in net overbillings for craft labor. The contractor agreed with our findings and plans to issue TVA a credit for the overbilled costs. Summary Only
This review included identifying (1) performance trends based on Institute of Nuclear Power Operations (INPO) reports, (2) major contributing factors affecting performance trends, and (3) patterns of behavior that impact culture. Our review found Nuclear Power Group's (NPG) performance with respect to the INPO index, an industry standard in trending nuclear performance, safety, and reliability, declined through 2007 and then improved through 2010. We found outages, both planned and forced, were a major contributor to changes in performance. The majority of the unplanned outages appeared to be the result of equipment reliability issues. Factors contributing to performance improvement included a gap-based business plan and other new initiatives within the organization, including a focus on equipment reliability. As part of this project, we reviewed the following elements of NPG culture: (1) alignment, (2) progress, (3) standards, (4) accountability, and (5) attitude. We found management had taken actions that enhanced culture through alignment and progress. However, in the areas of standards, accountability, and attitude, we noted that while management had taken some corrective actions, culture could be further enhanced by addressing certain issues. We made recommendations, accordingly, to management.