Group charges foul on TVA over contract

By Associated Press · The Knoxville Journal

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The Tennessee Valley Energy Coalition accused the TVA of favoritism in awarding a $45.5 million contract to Boston-based Stone & Webster Engineering Corp. for pipe support examination at Browns Ferry Nuclear Plant, claiming the bid was at least $10 million higher than other qualified bidders. TVEC Executive Director Mark Siegel raised concerns about whether ratepayers are protected against contractor favoritism, particularly given TVA nuclear chief Steven A. White's prior consulting relationship with Stone & Webster. TVA General Manager Bill Willis defended the selection process, stating the agency chose the bid offering the most quality for the money.

The award, combined with TVA's refusal to provide any factual basis for its decision, raises the question of whether TVA's ratepayers are protected against contractor takeover even after the reforms of the 1986 conflict-of-interest scandal
Mark Siegel

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Group charges foul on TVA over contract

The Associated Press

The Tennessee Valley Authority played favorites when it awarded a contract to a Boston engineering firm and then tried to hide the bidding process, a watchdog group said today.

Stone & Webster Engineering Corp. won a TVA contract on a $45.5 million bid, according to a statement released by the Tennessee Valley Energy Coalition. Out of 21 offers, the bid was "at least $10 million more than other qualified bidders," TVEC said.

The group also accused the utility of refusing to release information on the bidding process that awarded Stone & Webster the contract to examine pipe supports at Browns Ferry Nuclear Plant in May 1987, said TVEC Executive Director Mark Siegel.

"The award, combined with TVA's refusal to provide any factual basis for its decision, raises the question of whether TVA's ratepayers are protected against contractor takeover even after the reforms of the 1986 conflict-of-interest scandal," Siegel said.

But TVA General Manager Bill Willis denied that the agency erred. He said in a statement that TVA has "rigidly enforced procedures developed specifically to avoid favoritism or conflict of interest."

The information was not released to TVEC because it consists of "opinions and recommendations" by TVA employees, Willis said in a letter to the group.

TVEC also accused nuclear power chief Steven A. White of favoritism because he had worked for Stone & Webster as a consultant to TVA in 1986.

After members of Congress questioned White's relationship with the firm, he took a leave of absence from TVA. Several months later, White resigned from Stone & Webster, signed exclusively with TVA, and the agency's contract with the firm was rewritten.

In April 1987, the U.S. Office of Government Ethics determined TVA could hire the company without out White's direct involvement.

An unnamed firm that bid on the Browns Ferry contract complained to TVEC that the utility made no effort to evaluate its bid, Siegel said.

But Willis said failed bidders were given the chance to learn more about the selection process.

From the information TVA did supply to the group, the bids ranged from a low of $26.4 million by Nuclear Power Services Inc. to $54.3 million by Gibbs & Hill Inc. Four of the firms turned in bids higher than Stone & Webster's.

"We were looking for the most quality for the money so we could be assured of getting the work done right the first time," Willis said.