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B-199049 1 (1980-08-07)

handle is hein.gao/gaobadilu0001 and id is 1 raw text is: C - C I9 J ( FILE: B-199049 DATE: August 7, 198ft MATTER OF: Lone Star Energy Company C,10 DIGEST: Contract may not be reformed where there is no evidence in record that Government failed to use best information available to estimate chilled water and steam needs in requirements contract. The Veterans Administration (VA) has joguestedj C'0800/ us to determine whether VA's contract for chilled water and steam with the Lone Star Energy Company (Lone Star) should be reformed. The VA and Central Energy f San Antonio -Zexas (Central Energy), entered into a writte'n contract in 1971 whereby Central Energy would supply chilled water and steam to the Audie Murphy Memorial Veterans Hospital in San Antonio Tyx ~tral Energy was subsequently sold to Lone Star which is the assignee of the contract. The original contract included an estimate of the demand for both chilled water (approximately 11,632,000 ton-hours) and steam (approximately 110,000,000 B.T.U.) that was expected to be used during the calendar year. The contract further-provided that the basic rate to be charced to the VA per unit would be modified according to a set formula tied to the contractor's cost for fuel, energy, water, labor and taxes. In 1976, the contract was renewed and modified. At the time of the 1976 agreement, all parties appar- ently believed that the estimates for yearly usage were accurate and that, therefore, the adjustment formula would accurately determine the appropriate amount of compensation due to Lone Star per unit of steam and chilled water. No changes were made in the amounts of steam and chilled water Lone Star had to keep available for the VA's use under the original contract. 4.L~4 ~~09 - 0.OLLER THE COMPTROLLER GENERAL DECISION OF THE UNITED STATES 3 WASHINGTON. 0. C. 20549 it C-5;T>

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