Date Issued
Report Number
2026-17617
Report Type
Audit
Description
We performed an audit of costs billed to the Tennessee Valley Authority (TVA) by a company for services related to cooling tower fill repair at Watts Bar Unit 1. The objective of our audit was to determine if costs were billed in compliance with the contract’s terms. Our audit scope included about $18.4 million in costs paid from October 2, 2023, through December 31, 2025.
In summary, we determined the company overbilled TVA $9,860 in labor costs. In addition, we noted opportunities to improve contract administration by TVA. Specifically, (1) material costs could not be verified because the contract did not contain the company’s standard material pricing schedules, (2) the contract did not specify how freight costs were to be billed, and (3) TVA could not provide support that it evaluated the company’s eligibility for performance incentives based on the contract’s criteria.
Joint Report
No
Agency Wide
Yes (agency-wide)
Questioned Costs
$0
Funds for Better Use
$0