Since its inception five years ago, the plan and the method of selecting contractors have repeatedly been called into question.
Mr. Annan, who became secretary general in 1997, has previously said he had no role in selecting contractors.
The report found that the authority was poor at selecting contractors, supervising them and assuring the safety of children at construction sites.
She said the choice of contractors was based on "the first truly objective process for selecting contractors."
Under the program, the Department of Environmental Protection uses competitive bidding to select contractors who purchase meters and install them in houses.
Each state then had to regulate the new land, selecting private contractors, selecting settlers, and the maximum price they could charge for water.
Best value procurement is a procurement system that looks at factors other than just price, such as quality and expertise, when selecting vendors or contractors.
In addition, Bluewater selects contractors who plan connection to the grid and arrange for delivery of the energy to customers.
City officials acknowledge that the preferred way of selecting contractors is through competitive sealed bids.
When building new armories, the Adjutant General appoints a three member board that selects all architects and contractors for the project.