Federal Reports

We audited $2.2 million in costs billed to TVA by Pressure's On, Inc. (POI), for providing vacuuming services at TVA's fossil and nuclear plants. Our objective was to determine if POI had billed TVA in accordance with the contract terms and conditions. In summary, we determined POI had overbilled TVA $686,466 including:$257,807 in unsupported costs related to (1) missing cost details and (2) labor.$6,789 in duplicate billings.$41,123 due to the use of incorrect billing rates.$386,176 of ineligible costs for (1) mobilization/demobilization, (2) per diem, (3) labor escalation, (4) equipment and materials, and (5) fuel surcharges.Credit for $5,429 in discounts that had been provided by POI.We recommend TVA management recover $686,466 in overbilled costs from POI. Summary Only

We completed agreed-upon procedures to assist the Center for Resource Solutions in determining TVA's compliance with the annual reporting requirements of CRS' Green Pricing Accreditation Program for the year ended December 31, 2010. The results of the procedures applied were provided to the Center for Resource Solutions. Summary Only

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 Additionally, we found TVA's original Contracts Central policy had been superseded and much of the pertinent guidance and specific policy information had been ommitted.TVA management agreed with our findings and plans to (1) reinforce the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.

ED OIG Semiannual Report 62 Final 508