B-174523, NOV 23, 1971

B-174523: Nov 23, 1971

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SINCE GAO LACKS ANY AUTHORITY TO OBJECT TO ANY SUCH AWARDS AND THUS COULD TAKE NO REMEDIAL ACTION EVEN IF THE AWARD WAS IMPROPER. TO LEEDS AND NORTHRUP COMPANY: REFERENCE IS MADE TO YOUR PROTEST OF NOVEMBER 12. YOU CONTEND THAT THE AWARD IS NOT BEING MADE TO THE LOWEST RESPONSIBLE BIDDER. TVA IS A GOVERNMENT CORPORATION WHOSE PURCHASING AND CONTRACTING AUTHORITY IS SET FORTH IN SUBSECTION (B) OF SECTION 831H. THE CORPORATION IS AUTHORIZED TO MAKE SUCH EXPENDITURES AND TO ENTER INTO SUCH CONTRACTS. ANY EXPENDITURE WHICH THE BOARD SHALL DETERMINE TO HAVE BEEN NECESSARY TO CARRY OUT THE PROVISIONS OF SAID CHAPTER.".

B-174523, NOV 23, 1971

BID PROTEST - TENNESSEE VALLEY AUTHORITY DENIAL OF PROTEST AGAINST THE AWARD TO GENERAL ELECTRIC OF A CONTRACT FOR A DIRECT DIGITAL CONTROL AND DATA ACQUISITION SYSTEM BY THE TENNESSEE VALLEY AUTHORITY (TVA). SINCE TVA HAS AUTHORITY UNDER 16 U.S.C. 831HB) TO ENTER INTO CONTRACTS IN THE MANNER SELECTED BY THAT CORPORATION, AND SINCE GAO LACKS ANY AUTHORITY TO OBJECT TO ANY SUCH AWARDS AND THUS COULD TAKE NO REMEDIAL ACTION EVEN IF THE AWARD WAS IMPROPER, NO USEFUL PURPOSE WOULD BE SERVED BY ANY FURTHER CONSIDERATION OF THIS MATTER EXCEPT AT THE REQUEST OF TVA.

TO LEEDS AND NORTHRUP COMPANY:

REFERENCE IS MADE TO YOUR PROTEST OF NOVEMBER 12, 1971, AGAINST THE AWARD TO GENERAL ELECTRIC OF A CONTRACT FOR A DIRECT DIGITAL CONTROL AND DATA ACQUISITION SYSTEM BY THE TENNESSEE VALLEY AUTHORITY (TVA). YOU CONTEND THAT THE AWARD IS NOT BEING MADE TO THE LOWEST RESPONSIBLE BIDDER. YOU ALSO CHALLENGE THE BASIS FOR EVALUATION OF BIDS USED BY TVA.

TVA IS A GOVERNMENT CORPORATION WHOSE PURCHASING AND CONTRACTING AUTHORITY IS SET FORTH IN SUBSECTION (B) OF SECTION 831H, TITLE 16, U.S.C. WHICH PROVIDES IN PART AS FOLLOWS:

" *** PROVIDED, THAT, SUBJECT ONLY TO THE PROVISIONS OF THIS CHAPTER, THE CORPORATION IS AUTHORIZED TO MAKE SUCH EXPENDITURES AND TO ENTER INTO SUCH CONTRACTS, AGREEMENTS AND ARRANGEMENTS, UPON SUCH TERMS AND CONDITIONS AND IN SUCH MANNER AS IT MAY DEEM NECESSARY INCLUDING THE FINAL SETTLEMENT OF ALL CLAIMS AND LITIGATION BY OR AGAINST THE CORPORATION; AND, NOTWITHSTANDING THE PROVISIONS OF ANY OTHER LAW GOVERNING THE EXPENDITURE OF PUBLIC FUNDS, THE GENERAL ACCOUNTING OFFICE *** SHALL NOT DISALLOW CREDIT FOR, NOR WITHHOLD FUNDS BECAUSE OF, ANY EXPENDITURE WHICH THE BOARD SHALL DETERMINE TO HAVE BEEN NECESSARY TO CARRY OUT THE PROVISIONS OF SAID CHAPTER."

TVA HAS STATUTORY AUTHORITY TO ENTER INTO CONTRACTS IN THE MANNER SELECTED BY THAT CORPORATION AND THIS OFFICE EXPRESSLY LACKS AUTHORITY TO OBJECT TO SUCH AWARDS. THEREFORE, WE COULD NOT TAKE ANY REMEDIAL ACTION WITH RESPECT TO THE AWARD TO GENERAL ELECTRIC EVEN IF WE SHOULD FIND IT IMPROPER UNDER THE RULES GENERALLY APPLICABLE TO GOVERNMENT PROCUREMENTS. THEREFORE, WE MUST CONCLUDE THAT NO USEFUL PURPOSE WOULD BE SERVED BY OUR CONSIDERATION OF THE MATTER EXCEPT UPON THE REQUEST OF TVA.