Date Issued
Report Number
2026-17607
Report Type
Audit
Description
We performed an audit of costs billed to the Tennessee Valley Authority (TVA) by a contractor for coal combustion residual engineering services under Contract Nos. 13051 and 17936. Our audit objective was to determine if costs billed to TVA were in accordance with the contracts’ terms. Our audit scope included approximately $69.4 million in costs paid to the contractor between February 23, 2023, and September 12, 2025, including (1) $54.5 million in costs paid from February 23, 2023, through September 12, 2025, under Contract No. 13051 and (2) $14.9 million in costs paid from April 22, 2023, through September 12, 2025, under Contract No. 17936.
In summary, we determined the contractor overbilled TVA $23,326 on Contract No. 13051, including (1) $11,897 for ineligible equipment, (2) $6,368 for incorrect drilling unit rates, and (3) $5,061 in labor costs. In addition, we determined that including minimum and maximum time and material labor billing rate ranges in the pricing schedule for Contract No. 17936 allowed the contractor to charge excessive labor rates, resulting in $285,253 in overbilled labor costs.
Joint Report
No
Agency Wide
Yes (agency-wide)
Questioned Costs
$0
Funds for Better Use
$0