Federal Reports

At the request of the Tennessee Valley Authority's (TVA) Supply Chain, the OIG examined a cost proposal submitted for engineering and management services for hydroelectric power train and associated systems. Our objective was to determine if the vendor's cost proposal was fairly stated for a planned $90 million contract. In our opinion, proposed overhead rate to be applied to noncraft salaries was fairly stated. However, we found the proposed 13 percent profit rate to be applied to total costs was (a) double its actual historical profit margins and (b) not in accordance with the application base requested by TVA. We estimated TVA could avoid about $3.45 million on the planned $90 million contract by negotiating a profit rate to be applied to fully burdened noncraft labor costs only and unnecessary markup rates for craft burden, project related insurance, and performance and payment bonds. In addition, we identified compensation terms in the draft contract that needed to be revised to reduce a potential for billing discrepancies.(Summary Only)

A hotline complainant alleged that AmeriCorps members assigned to a California grantee performed services outside the scope of the veterans and military families grant.

The purpose of this evaluation was to answer the question; Does the ARC continuously diagnose and mitigate threats to its network system.

Not all of the salary and benefit expenses that the Rocky Boy Health Board (Rocky Boy), a component of the Chippewa Creek Tribe of the Rocky Boy's Reservation (Tribe), incurred were allowable in accordance with Federal requirements, the Tribe's policies, and Rocky Boy's policies. During Federal fiscal years (FYs) 2011 through 2013, Rocky Boy incurred and paid unallowable salary and benefit expenses of $271,000. The unallowable expenses consisted of $82,000 in duplicate salary payments, $62,000 in unsupported supplemental payments, $51,000 in excessive retirement benefit payments, $32,000 in unallowable exempt overtime payments, $17,000 in unallowable nonexempt overtime payments, $13,000 in unallowable donated leave payments, $11,000 in excessive annual leave payments, and $3,000 in unauthorized compensatory time payments.

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Historically the purpose of the postal monopolies has been to ensure the Postal Service has adequate revenue to cover the cost of its universal service obligation. The combination of the decline in letter mail and the price cap on monopoly products has challenged the ability of the monopolies to earn sufficient revenue. The OIG looked at various funding alternatives and suggests three that are viable – monopoly with increased pricing flexibility, direct subsidy, and diversification.