At the request of the Tennessee Valley Authority (TVA) Supply Chain, the OIG examined a cost proposal submitted by a company for construction services for TVA bottom ash dewatering facilities. Our objective was to determine if the company's cost proposal was fairly stated for a planned $100 million contract. In our opinion, the cost proposal was overstated. Specifically, the company's proposal included: (1) overstated fees, (2) excessive subcontractor craft labor costs, and (3) contingency costs that could inflate the final costs paid for the services. We estimated TVA could avoid about $10.81 million on the planned $100 million contract by: (1) negotiating reductions to the proposed fee rate and only applying fee to costs specified in TVA's request for proposal (RFP), (2) limiting subcontractor craft labor billing rates to the rates for the company's craft labor employees as required by the RFP, and (3) eliminating contingency costs from cost-based target cost estimate projects. Additionally, we found the company's cost proposal included incorrect craft labor rates.(Summary Only)
| Report Date | Agency Reviewed / Investigated | Report Title | Type | Location | |
|---|---|---|---|---|---|
| Tennessee Valley Authority | Proposal for Construction Services for TVA Bottom Ash Dewatering Facilities | Audit | Agency-Wide | View Report | |
| Department of Defense | Acquisition of the Navy Surface Mine Countermeasure Unmanned Undersea Vehicle (Knifefish) Needs Improvement | Audit | Agency-Wide | View Report | |
| Peace Corps | Semiannual Report to Congress April 1, 2016 to September 30, 2016 | Semiannual Report | Agency-Wide | View Report | |
| Department of Energy | Nuclear Safety at Naval Reactors’ Facilities | Audit |
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View Report | |
| Department of Homeland Security | Major Management and Performance Challenges Facing the Department of Homeland Security | Top Management Challenges | Agency-Wide | View Report | |
| U.S. African Development Foundation | The United States African Development Foundation's Information Security Program Needs Improvements to Comply With FISMA | Audit |
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View Report | |
| Inter-American Foundation | The Inter-American Foundation Has Implemented Many Controls in Support of FISMA, but Improvements Are Needed | Audit |
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View Report | |
| Millennium Challenge Corporation | The Millennium Challenge Corporation Has Implemented Many Controls in Support of FISMA, But Improvements Are Needed | Audit |
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View Report | |
| Overseas Private Investment Corporation | The Overseas Private Investment Corporation Has Implemented Many Controls in Support of FISMA for Fiscal Year 2016, but Improvements Are Needed | Audit |
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View Report | |
| Department of Defense | Independent Auditor’s Report on the DoD Medicare-Eligible Retiree Health Care Fund FY 2016 and FY 2015 Basic Financial Statements | Audit | Agency-Wide | View Report | |
