B-182767, DEC 16, 1974

B-182767: Dec 16, 1974

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PROTEST AGAINST AWARD OF CONTRACT BY TVA WILL NOT BE CONSIDERED. SINCE TVA IS GOVERNMENT CORPORATION WHOSE ACCOUNTS ARE NOT SUBJECT TO SETTLEMENT BY GENERAL ACCOUNTING OFFICE. THE LOW BID OF ENGINEERING INCORPORATED WAS REJECTED BY TVA FOR FAILING TO MEET THE SPECIFICATIONS. BY OR FOR AN AGENCY OF THE FEDERAL GOVERNMENT WHOSE ACCOUNTS ARE SUBJECT TO SETTLEMENT BY THE GENERAL ACCOUNTING OFFICE. TVA IS A GOVERNMENT CORPORATION WHOSE PURCHASING AND CONTRACTING AUTHORITY IS SET FORTH IN 16 U.S.C. 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-182767, DEC 16, 1974

PROTEST AGAINST AWARD OF CONTRACT BY TVA WILL NOT BE CONSIDERED, SINCE TVA IS GOVERNMENT CORPORATION WHOSE ACCOUNTS ARE NOT SUBJECT TO SETTLEMENT BY GENERAL ACCOUNTING OFFICE.

ENGINEERING INCORPORATED:

ENGINEERING INCORPORATED PROTESTED THE AWARD OF A CONTRACT UNDER INVITATION FOR BIDS NO. 37-85644 ISSUED BY THE TENNESSEE VALLEY AUTHORITY (TVA). THE LOW BID OF ENGINEERING INCORPORATED WAS REJECTED BY TVA FOR FAILING TO MEET THE SPECIFICATIONS.

OUR BID PROTEST PROCEDURES AND STANDARDS, 4 C.F.R. SEC. 20.1(A) (1974), SPECIFICALLY AUTHORIZES THIS OFFICE TO ENTERTAIN PROTESTS BY INTERESTED PARTIES WISHING TO PROTEST THE PROPOSED AWARD OF A CONTRACT, OR THE AWARD OF A CONTRACT, BY OR FOR AN AGENCY OF THE FEDERAL GOVERNMENT WHOSE ACCOUNTS ARE SUBJECT TO SETTLEMENT BY THE GENERAL ACCOUNTING OFFICE.

HOWEVER, TVA IS A GOVERNMENT CORPORATION WHOSE PURCHASING AND CONTRACTING AUTHORITY IS SET FORTH IN 16 U.S.C. SEC. 831HB) (1970), 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."

SINCE TVA'S ACCOUNTS ARE NOT SUBJECT TO SETTLEMENT BY OUR OFFICE, WE COULD NOT TAKE ANY REMEDIAL ACTION WITH RESPECT TO THE AWARD ACTION 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 PROTEST. MATTER OF NATIONAL VALVE AND MANUFACTURING COMPANY, B-180725, MARCH 12, 1974.