B-140403, JAN. 21, 1960
Highlights
GENERAL SERVICES ADMINISTRATION: RECENTLY WE HAD OCCASION TO CONSIDER THE EXTENT TO WHICH THE TENNESSEE VALLEY AUTHORITY IS REQUIRED TO FOLLOW THE FEDERAL PROCUREMENT REGULATIONS WITH PARTICULAR RESPECT TO LATE BIDS. IT WAS STATED THAT WE DID NOT BELIEVE THAT THE FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT OF 1949 CONTEMPLATED THAT TVA WOULD DETERMINE UNILATERALLY NOT TO FOLLOW A PARTICULAR REGULATION ISSUED BY THE ADMINISTRATOR. IT WAS STATED THAT IT WAS OUR BELIEF THAT THE CONGRESS AND PRESIDENT INTENDED THAT TVA WOULD COOPERATE AND UTILIZE THE UNIFORM PROCEDURES EXCEPT WHERE THEY WERE NOT CONSISTENT WITH OR ADAPTABLE TO TVA'S OPERATIONS. DETERMINED TO FOLLOW THEIR EXISTING PROCEDURE WHICH HAS BEEN PROVED SATISFACTORY RATHER THAN TO ADOPT THE PROCEDURE SET FORTH IN THE FEDERAL PROCUREMENT REGULATIONS WHICH IS NOT REGARDED AS COMPATIBLE WITH THE EFFICIENT CONDUCT OF TVA'S BUSINESS.
B-140403, JAN. 21, 1960
TO HONORABLE FRANKLIN FLOETE, ADMINISTRATOR, GENERAL SERVICES ADMINISTRATION:
RECENTLY WE HAD OCCASION TO CONSIDER THE EXTENT TO WHICH THE TENNESSEE VALLEY AUTHORITY IS REQUIRED TO FOLLOW THE FEDERAL PROCUREMENT REGULATIONS WITH PARTICULAR RESPECT TO LATE BIDS.
IN OUR LETTER OF DECEMBER 7, 1959, TO THE CHAIRMAN, TENNESSEE VALLEY AUTHORITY, COPY HEREWITH, IT WAS STATED THAT WE DID NOT BELIEVE THAT THE FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT OF 1949 CONTEMPLATED THAT TVA WOULD DETERMINE UNILATERALLY NOT TO FOLLOW A PARTICULAR REGULATION ISSUED BY THE ADMINISTRATOR, GENERAL SERVICES ADMINISTRATION, MERELY BECAUSE OF A DIFFERENCE OF OPINION AS TO ITS ABSTRACT MERITS. IT WAS STATED THAT IT WAS OUR BELIEF THAT THE CONGRESS AND PRESIDENT INTENDED THAT TVA WOULD COOPERATE AND UTILIZE THE UNIFORM PROCEDURES EXCEPT WHERE THEY WERE NOT CONSISTENT WITH OR ADAPTABLE TO TVA'S OPERATIONS, BECAUSE OF SOME FEATURE PECULIAR TO TVA FUNCTIONS AND DIFFERENT FROM THE CONSIDERATIONS OBTAINING IN GOVERNMENT AGENCIES IN GENERAL.
BY LETTER DATED DECEMBER 23, 1959, COPY HEREWITH, THE CHAIRMAN, TENNESSEE VALLEY AUTHORITY, FOR THE REASONS STATED THEREIN, DETERMINED TO FOLLOW THEIR EXISTING PROCEDURE WHICH HAS BEEN PROVED SATISFACTORY RATHER THAN TO ADOPT THE PROCEDURE SET FORTH IN THE FEDERAL PROCUREMENT REGULATIONS WHICH IS NOT REGARDED AS COMPATIBLE WITH THE EFFICIENT CONDUCT OF TVA'S BUSINESS.
WE BELIEVE THAT TVA HAS GREATLY MAGNIFIED THE ALLEGED PROBLEMS INVOLVED. HOWEVER, IN VIEW OF THE SPECIFIC PROVISIONS OF SECTION 602 (D) 12, THAT TVA "SHALL TO THE MAXIMUM EXTENT THAT IT MAY DEEM PRACTICABLE, CONSISTENT WITH THE FULFILLMENT OF THE PURPOSE OF ITS PROGRAM AND THE EFFECTIVE AND EFFICIENT CONDUCT OF ITS BUSINESS, COORDINATE ITS OPERATIONS WITH THE REQUIREMENTS OF THIS ACT AND THE POLICIES AND REGULATIONS PRESCRIBED PURSUANT THERETO," WE DO NOT BELIEVE THAT WE WOULD BE WARRANTED IN PURSUING THE MATTER FURTHER.
ACCORDINGLY, SINCE THE ADMINISTRATOR, GENERAL SERVICES ADMINISTRATION IS PRIMARILY RESPONSIBLE FOR SEEING THAT THE AGENCIES COVERED BY THE ACT FOLLOW THE REGULATIONS ISSUED PURSUANT THERETO, THE MATTER IS FORWARDED TO YOU FOR WHATEVER ACTION YOU MAY DESIRE TO TAKE.
THE LETTER OF DECEMBER 23, 1959, FROM THE CHAIRMAN, TENNESSEE VALLEY AUTHORITY, DOES NOT APPER TO REQUIRE A REPLY, AND THEREFORE, WE DO NOT INTEND TO REPLY THERETO.