Date Issued
Report Number
2007-024C
Report Type
Audit
Description
We reviewed 40 contracts awarded by Procurement during fiscal year 2006 and found: (1) insufficient competition existed in the award of seven of the contracts because only one bid had been received and evaluated; (2) Technical Contract Managers contacted vendors and received pricing quotes prior to Procurement's involvement in five of the contract awards; and (3) with some exceptions, Procurement's contract managers and purchasing agents had appropriate documentation in the contract files. To help TVA assure it is receiving adequate competition, we recommended TVA Procurement: (1) require management approval for all contracts greater than $25,000 when only one bid is received; (2) reinforce compliance with TVA's requirement that only Procurement personnel are authorized to obtain proposals from potential suppliers; and (3) provide clear guidance as to the contract file documentation requirements. In addition, we suggested Procurement consider the benefits of creating a position of Competition Advocate, a position required for other federal agencies. TVA management is reviewing our recommendations to decide what actions should be taken to improve the contract award process. Summary Only
Joint Report
Yes
Participating OIG
Tennessee Valley Authority OIG
Agency Wide
Yes (agency-wide)
Questioned Costs
$0
Funds for Better Use
$0