B-295952.4, LENS, JV--Costs, December 12, 2005

B-295952.4 Dec 12, 2005 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights LENS, JV requests that our Office recommend that the firm be reimbursed the costs of filing and pursuing its protest of the non-selection of firms proposal under request for proposals (RFP) No. N62742-03-R-1112, issued by the Department of the Navy for an electric utility privatization initiative at the Marine Corps Base Hawaii (MCBH) Kaneohe Bay. In that protest, LENS argued that the agencys should cost methodology for operation and maintenance of the electric utility system was flawed and inconsistent with the solicitation and was based upon information not provided to the offeror. We deny the request. View Decision B-295952.4, LENS, JV--Costs, December 12, 2005 DOCUMENT FOR PUBLIC RELEASE The decision issued on the date below was subject to a GAO Protective Order. This redacted version has been approved for public release. Decision Matter of: LENS, JV--Costs File: B-295952.4 Date: December 12, 2005 Albert B. Krachman, Esq., David A. Lieb, Esq., and Brian S. Gocial, Esq., Blank Rome LLP, for the protester. Robert E. Little, Jr., Esq., Department of the Navy, for the agency. Guy R. Pietrovito, Esq., and James A. Spangenberg, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Request for recommendation for reimbursement of costs for filing and pursuing protest is denied, even though the agency decided to take corrective action in response to the protest, where the record does not establish that protest was clearly meritorious. DECISION LENS, JV requests that our Office recommend that the firm be reimbursed the costs of filing and pursuing its protest of the non-selection of firm's proposal under request for proposals (RFP) No. N62742-03-R-1112, issued by the Department of the Navy for an electric utility privatization initiative at the Marine Corps Base Hawaii (MCBH) KaneoheBay. In that protest, LENS argued that the agency's –should cost— methodology for operation and maintenance of the electric utility system was flawed and inconsistent with the solicitation and was based upon information not provided to the offeror. We deny the request. The RFP was issued pursuant to the Department of Defense's (DOD) program to consider privatization of utility systems at military installations. See DOD Revised Guidance for the Utilities Privatization Program, Oct. 9, 2002. Authority for that program is provided by 10 U.S.C. sect. 2688 (2000), which provides that the secretary of a military department may convey a utility system to a municipal, private, regional, district, or cooperative utility company or other entity so long as it is in the long-term economic interest of the government. Here, the RFP invited proposals for the privatization of the electric distribution system at the MCBHKaneoheBay. Potential offerors were informed The New Owner shall own, operate, repair and maintain the Primary (12KV) Electrical Distribution Systems (EDS) at MCBH Kaneohe Bay, providing continuous electric utility service 24 hours per day, 7 days per week. The New Owner shall employ sound utility practices to ensure continuous, dependable, and reliable utility service is provided to [MCBHKaneoheBay] and to minimize the scope and length of any service disruption. RFP, attach. J.3, MCBHKaneoheBay Electrical Distribution System Specification, at 1. The RFP also described the major customers, such as family housing, and major facilities to be supported under the solicitation. Id. at 3. In addition, the RFP provided a detailed technical data package that, among other things, described the historical electric usage, electric assets (and for each asset its service life and remaining life), planned capital projects, and –pending/potential energy saving performance contract projects,— and included an assessment of the condition of various electric system assets. Id., attach. 15, Technical Data Package. Minimum service requirements and performance standards were also provided. Among other things, offerors were informed that the electric system was required to be –up 99 % of the time,— that –[e]ach system or major piece of equipment is operational in that there are no significant impacts to customers or the Base,— and that emergency service work be performed, 95 percent of the time, within 15 minutes during normal working hours and within 2 hours outside of normal working hours. Id., attach J.3, MCBH Kaneohe Bay Electrical Distribution System Specification, at 4. Offerors were required to provide separate technical and price proposals. With respect to the price proposals, offerors were informed that they must submit fixed prices for three items: an upfront payment for purchase of the utility system; a monthly purchase credit for the utility system in lieu of, or in addition to, the upfront monthly payment; and a monthly operation and maintenance (O&M) charge. RFP at 77.