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Tennessee Valley Authority: Issues Surrounding Decision to Contract Out Construction Activities

RCED-92-105 Published: Jan 31, 1992. Publicly Released: Feb 13, 1992.
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Highlights

Pursuant to a congressional request, GAO reviewed the Tennessee Valley Authority's (TVA) decision to contract for all construction and major modification work, focusing on the: (1) basis for its decision; (2) rationale for certain procedures TVA followed in complying with the Government in the Sunshine Act; (3) decision's effect on TVA employees; and (4) decision's effect on TVA operations.

Recommendations

Matter for Congressional Consideration

Matter Status Comments
Because of the interest and concern generated by the TVA contracting-out decision and because it is too early to determine the full effect of the decision, Congress may wish to consider requiring TVA to provide it with semiannual reports for the next 3 years on the implementation of the TVA contracting-out decision. If Congress determines that such reporting is appropriate, it could receive the first semiannual report by June 30, 1992. The report could provide information on the: (1) number of temporary trades and labor workers hired by the contractors; (2) number of permanent salary and annual trades and labor employees affected by the decision, and whether these employees resigned or received new jobs through the Employee Transition Program; and (3) productivity, efficiency, and savings actually achieved as a result of the TVA contracting-out decision.
Closed – Implemented
TVA will submit its first report on August 4, 1992.

Recommendations for Executive Action

Agency Affected Recommendation Status
Other To avoid procedural violations or the appearance of any potential conflict with the Government in the Sunshine Act's provisions, the Chairman, TVA Board of Directors, should restructure the TVA Executive Committee so that the three members of the Board of Directors do not serve on the Committee.
Closed – Implemented
TVA abolished the executive committee.

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Topics

Conflict of interestsConstruction contractsCost controlFederal employeesGovernment sponsored enterprisesStaff utilizationPrivatizationProductivity in governmentReductions in forceReporting requirements