Date Issued
Report Number
2017-15462
Report Type
Audit
Description
At the request of the Tennessee Valley Authority's (TVA) Supply Chain, we performed an audit of costs billed to TVA by ThyssenKrupp Elevator Americas (TKE) for providing elevator maintenance and repair services under Contract No. 8527. Our audit included approximately $2.83 million in costs billed to TVA from October 7, 2014, to December 31, 2016. Our audit objective was to determine if TKE billed TVA in compliance with the contract's terms and conditions.In summary, we determined TKE overbilled TVA $439,620 in elevator service costs, including (1) $184,477 in ineligible modernization costs; (2) $170,900 in unsupported and overbilled repair costs; (3) $68,515 in overbilled preventative maintenance costs, in which a credit of $1,036 has been provided to TVA; and (4) $15,728 in overbilled callback service costs. Additionally, we noted several opportunities to improve contract administration by TVA. Specifically, we found (1) stand-alone purchase orders that should have been referenced to Contract No. 8527, (2) missing Maintenance Control Program documentation, (3) costs administratively paid under another contract that should have been administratively paid under Contract No. 8527, and (4) missed early payment discount opportunities.(Summary Only)
Joint Report
Yes
Participating OIG
Tennessee Valley Authority OIG
Agency Wide
Yes (agency-wide)
Questioned Costs
$0
Funds for Better Use
$0