American Energy Logistics Solutions, LLC (SPE604-18-R-0406)

B-417844.3 Jul 23, 2020 Jump To FULL REPORT VIEW DECISION RELATED PAGES GAO CONTACTS Highlights American Energy Logistics Solutions LLC (AELS), of New York, New York, protests the award of a contract to Schuyler Line Navigation Company, LLC, of Annapolis, Maryland, under request for proposals (RFP) No. SPE604-18-R-0406, issued by the Defense Logistics Agency (DLA) for the supply and delivery of liquefied natural gas (LNG) to the Naval Station Guantanamo Bay, Guantanamo Bay, Cuba. The protester challenges the agency's finding that AELS was not responsible because the firm lacked adequate financial resources to perform the contract, or the ability to obtain them. We deny the protest. View Decision 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:  American Energy Logistics Solutions LLC File:  B-417844.3 Date:  July 23, 2020 Daniel P. Graham, Esq., John M. Satira, Esq., and Peter T. Thomas, Esq., Vinson & Elkins LLP, for the protester. Bryant E. Gardner, Esq., Zachary B. Cohen, Esq., and Allison Skopec, Esq., Winston & Strawn LLP, for Schuyler Line Navigation Company, LLC, the intervenor. Yevgeniy P. Malashenok, Esq., and Louise E. Hansen, Esq., Defense Logistics Agency, for the agency. Louis A. Chiarella, Esq., and Peter H. Tran, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Protest challenging a determination that the protester was nonresponsible is denied where the contracting officer’s judgment that protester did not have adequate financial resources to perform, or ability to obtain them, was reasonably based. DECISION American Energy Logistics Solutions LLC (AELS), of New York, New York, protests the award of a contract to Schuyler Line Navigation Company, LLC, of Annapolis, Maryland, under request for proposals (RFP) No. SPE604-18-R-0406, issued by the Defense Logistics Agency (DLA) for the supply and delivery of liquefied natural gas (LNG) to the Naval Station Guantanamo Bay, Guantanamo Bay, Cuba.  The protester challenges the agency’s finding that AELS was not responsible because the firm lacked adequate financial resources to perform the contract, or the ability to obtain them. We deny the protest. BACKGROUND The RFP was issued on June 8, 2018, pursuant to the procedures set forth in Federal Acquisition Regulation (FAR) part 15, for the supply and delivery of an estimated 2,252,171 million British Thermal Units of LNG.  Agency Report (AR), Tab 21, RFP at 3; Tab 29, RFP amend. 7 at 2.[1]  The solicitation contemplated the award of a fixed-price requirements contract for a 5-year period beginning in March 2021.  RFP at 3; RFP amend. 7 at 2.  The RFP established that award would be made to the responsible offeror with the lowest-price, technically acceptable (LPTA) proposal, based on three evaluation factors:  technical capability, past performance, and price.[2]  RFP at 80-81. Three offerors, including Schuyler and AELS, submitted proposals by the October 15 closing date.[3]  The agency completed its evaluation on July 25, 2019, and found AELS to be nonresponsible based on a lack of adequate financial resources to perform the contract, or the ability to obtain them.  COS/MOL, B-417844, B-417844.2, Sept. 11, 2019, at 11.  On July 30, the agency made contract award to Schuyler.  Id. at 12. On August 12, AELS filed a protest with our Office challenging DLA’s nonresponsibility determination.  On September 27, DLA decided to take corrective action by re-opening discussions with AELS and Schuyler, evaluating offerors’ revised proposals, and making a new selection decision.  We then dismissed the earlier AELS protest as academic.  American Energy Logistics Sols., LLC, B-417844, B-417844.2, Oct.