B-176559, SEP 29, 1972

B-176559: Sep 29, 1972

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INCORPORATED: REFERENCE IS MADE TO YOUR LETTER OF JULY 14. AWARD WAS MADE TO ANOTHER BIDDER. TVA IS A GOVERNMENT CORPORATION WHOSE PURCHASING AND CONTRACTING AUTHORITY IS SET FORTH IN SUBSECTION (B) OF SECTION 831 H. 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-176559, SEP 29, 1972

BID PROTEST - TENNESSEE VALLEY AUTHORITY CONTRACTS CONCERNING THE PROTEST OF MOTOROLA, INC., AGAINST AWARD OF A CONTRACT UNDER AN IFB ISSUED BY THE TENNESSEE VALLEY AUTHORITY (TVA). TVA HAS THE STATUTORY AUTHORITY TO ENTER INTO CONTRACTS IN THE MANNER SELECTED BY IT AND GAO HAS NO AUTHORITY TO OBJECT TO ANY SUCH AWARDS.

TO MOTOROLA, INCORPORATED:

REFERENCE IS MADE TO YOUR LETTER OF JULY 14, 1972, PROTESTING AGAINST THE AWARD OF A CONTRACT UNDER INVITATION FOR BIDS NO. 3-75512, ISSUED BY THE TENNESSEE VALLEY AUTHORITY (TVA). YOU CONTEND THAT WHILE MOTOROLA SUBMITTED THE LOW RESPONSIVE BID; AWARD WAS MADE TO ANOTHER BIDDER.

TVA IS A GOVERNMENT CORPORATION WHOSE PURCHASING AND CONTRACTING AUTHORITY IS SET FORTH IN SUBSECTION (B) OF SECTION 831 H, 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 MADE EVEN IF WE SHOULD FIND IT IMPROPER UNDER THE RULES GENERALLY APPLICABLE TO GOVERNMENT PROCUREMENTS. IN THE CIRCUMSTANCES, WE MUST CONCLUDE THAT NO USEFUL PURPOSE WOULD BE SERVED BY OUR CONSIDERATION OF THE MATTER.