All Reports

At the request of the Tennessee Valley Authority's (TVA) Supply Chain, we examined the cost proposal submitted by a contractor for nuclear modifications, outage and supplemental maintenance, and technical support services at TVA's three operating nuclear plants. Our examination objective was to determine if the company's cost proposal was fairly stated for a planned $950 million contract. In our opinion, the company's cost proposal was fairly stated.

The Tennessee Valley Authority (TVA) uses anhydrous ammonia in selective catalytic reduction systems to aid in the removal of nitrogen oxide, a by-product of burning coal. Anhydrous ammonia is hazardous when inhaled, ingested, or when it comes in contact with the eyes, skin, or mucous membranes. Based on safety risks associated with the handling of ammonia, we initiated an evaluation to determine the adequacy of staffing and training of ammonia operations at coal plants.

John Sevier Fossil Plant (JSF) is the first in a series of planned plant retirements to enter the demolition phase of the Tennessee Valley Authority's (TVA) Decommissioning, Deactivation, Decontamination, and Demolition (D4) process. In the demolition phase, the plant, associated equipment, facilities, and structures are removed. Demolition also includes creating conditions for proper site drainage and establishing vegetation. TVA contracted with Brandenburg Industrial Service Company (Brandenburg) to perform the demolition at JSF.

The OIG analyzed the metrics and associated maturity levels defined within the Fiscal Year (FY) 2016 Inspectors General (IG) Federal Information Security Modernization Act of 2014 (FISMA) Reporting Metrics and found TVA's maturity levels for the five cybersecurity functional areas ranged from level 1, ad hoc, to level 3, consistently implemented.

At the request of the Tennessee Valley Authority's (TVA) Supply Chain, we examined the cost proposal submitted by a contractor for non-nuclear modification and supplemental maintenance services and technical support services. Our objective was to determine if the cost proposal was fairly stated for a planned $950 million contract. In our opinion, the cost proposal was overstated. Specifically, the proposal included overstated nonmanual payroll tax rates and fringe benefit rates.

The Tennessee Valley Authority (TVA) vendor management system is a cloud based system physically located away from TVA facilities and outsourced to a third party. The OIG audited the vendor management system to assess the (1) data processing and application controls to ensure data integrity and reliability and (2) logical security controls to ensure only authorized access to system resources and protection of sensitive information. Our scope included TVA's vendor management system and its interfaces to TVA systems.

At the request of the Tennessee Valley Authority (TVA) Supply Chain, the OIG examined the cost proposal submitted by a company for construction services for TVA bottom ash dewatering facilities. Our objective was to determine if this company's cost proposal was fairly stated for a planned $100 million contract. In our opinion, the company's cost proposal was overstated. Specifically, the company's cost proposal for the Kingston Fossil Plant (KIF) baseline project included overstated fees and costs.

At the request of the Tennessee Valley Authority (TVA) Supply Chain, the OIG examined the cost proposal submitted by a company for engineering and management services for hydroelectric power train and associated systems. Our objective was to determine if the company's cost proposal was fairly stated for a planned $90 million contract. In our opinion, the markup rates included in the company's proposal were fairly stated.

In keeping with its responsibilities under the Inspector General Act of 1978, as amended, the OIG monitored the audit of TVA's fiscal year 2016 financial statements performed by Ernst and Young LLP (EY) to assure their work complied with Government Auditing Standards. Our review of EY's work disclosed no instance in which the firm did not comply in all material respects with generally accepted government auditing standards.