Federal Reports

We reviewed $59.2 million of costs paid by TVA to a contractor for providing managed security services for TVA Nuclear and security support for other TVA organizations. We found the contractor had overbilled TVA $104,599, including (1) $84,799 for leased vehicle costs that included billings past lease expiration dates and reductions in the lease costs that had not been passed through to TVA, (2) $16,221 for labor costs and associated fees because certain straight time hours were billed to TVA at overtime rates, and (3) $3,599 of estimated travel costs that were either unsupported or ineligible. TVA concurred with our findings and is planning to recover the overbillings. Summary Only

We reviewed $5.7 million of payments TVA made to a contractor for providing analysis and licensing support for tritium production at Sequoyah Nuclear Plant and determined the contractor had overbilled TVA $78,653. The overbilling included (1) an estimated $76,075 in unsupported labor costs and (2) $2,578 for travel and material costs that were either unsupported or ineligible. TVA management is planning to recover the overbilled costs. Summary Only

We assessed TVA's compliance with applicable policies, procedures, and laws/regulations when conducting land disposal transactions. TVA's land disposal actions include easements, sales, abandonments, deed modifications, transfers, and leases. The TVA Act grants TVA authority to transfer land to government agencies, corporations, partnerships, or individuals. TVA's overall policy on the use, acquisition, and disposal of land is contained in TVA Code V, which was last updated in 1982. With regard to reservoir property:TVA maintains 293,000 acres of reservoir property. River Systems Operations and Environment (RSO&E) manages reservoir property and maintains Board-approved Land Management Plans for the major reservoir properties. In summary, we determined:TVA's policy on land disposals does not clearly articulate (1) criteria for considering which property is subject to disposal, (2) criteria for accepting or rejecting proposals, and (3) provisions for land swaps. RSO&E generally complied with their land disposal processes including (1) obtaining appropriate reviews and approvals, (2) ensuring independent appraisals of land value, and (3) receipt of payment for appraised values. However, we found documentation could be improved related to the non-requirement of public notice. Documentation is not required or being maintained for withdrawn or rejected Land Use Applications. RSO&E has scheduled reassessment of TVA's Land Management Plans beyond their planned ten-year horizon. No non-compliance with applicable laws and regulations. TVA management generally agreed with our findings and recommendations and has taken or plans to take corrective action.