MCG Energy Solutions, LLC (89503222CWA000077)

B-421143 Jan 10, 2023 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights MCG Energy Solutions, LLC, a small business located in Minneapolis, Minnesota, protests the award of a sole-source contract to Open Access Technology International, Inc. (OATI), of Minneapolis, Minnesota, by the Department of Energy, Western Area Power Administration (WAPA), for the provision of web-hosted applications for power industry energy scheduling, trading, settlements, e-tagging, and operations. The protester argues that the agency improperly failed to use full and open competition to procure the requirement. We deny the protest. View Decision Decision Matter of: MCG Energy Solutions, LLC File: B-421143 Date: January 10, 2023 Brenda Huebsch, MCG Energy Solutions, LLC, for the protester. Kevin R. Hilferty, Esq., Stephanie B. Young, Esq., Elizabeth S. Cypers, Esq., and John D. Kral, Esq., Department of Energy, for the agency. Uri R. Yoo, Esq., and Alexander O. Levine, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Protest of agency’s sole-source award of a follow-on contract for a highly specialized system is denied where the record shows the agency reasonably concluded that award to any other source would likely cause substantial cost duplication and unacceptable delays in fulfilling the agency’s requirements. DECISION MCG Energy Solutions, LLC, a small business located in Minneapolis, Minnesota, protests the award of a sole-source contract to Open Access Technology International, Inc. (OATI), of Minneapolis, Minnesota, by the Department of Energy, Western Area Power Administration (WAPA), for the provision of web-hosted applications for power industry energy scheduling, trading, settlements, e-tagging, and operations. The protester argues that the agency improperly failed to use full and open competition to procure the requirement. We deny the protest. BACKGROUND The procurement at issue seeks the provision of web-hosted applications for power industry energy scheduling, trading, settlements, e-tagging, and operations to support WAPA’s mission. Contracting Officer’s Statement and Memorandum of Law (COS/MOL) at 1, 3. As one of four power marking administrations within the Department of Energy, WAPA operates and maintains 17,280 miles of transmission lines, 326 substations, and other related facilities in a service area that covers 1.3 million square miles, providing service to consumers in 15 western states through its wholesale power customers. Id. at 2. The application and software being procured support WAPA in its administrative, development, and maintenance duties associated with North American Energy Standards Board standards for transmitting information regarding every electric power interchange transaction. Id. To serve the 15 western states, WAPA operates in five regions: Rocky Mountain Region; Desert Southwest Region; Sierra Nevada Region; Upper Great Plains Region (UGP); and Colorado River Storage Project (CRSP). Id. at 2‑3. Until 2014, each of the five regions separately procured and managed contracts with OATI for its web-hosted applications for energy scheduling, trading, and operations. Id. In 2014, the agency decided to consolidate these separate regional contracts into one WAPA-wide contract to eliminate administrative inefficiency, and completed this consolidation in 2017. Id. The consolidated contract provided the required services to all five WAPA regions. Id. The current procurement seeks to reprocure these services from OATI on a sole-source basis after the agency determined that OATI is the only responsible source that can meet the agency’s needs. Id. at 3. On November 24, 2021, WAPA issued a notice of intent to contract with OATI for this requirement by means other than full and open competition under Federal Acquisition Regulation (FAR) section 6.302-1. Id. at 4. Only one entity, MCG, responded to the notice of intent. Id. After reviewing MCG’s capability statement, the agency determined that the statement was not directly responsive to the criteria contained in the notice and did not adequately demonstrate that MCG could meet the agency’s requirements. Id. After the agency notified MCG that it intended to proceed with the sole-source award, MCG filed a protest with our Office, which we docketed as B-420495.1. On February 16, 2022, WAPA notified our Office of its intent to take corrective action in response to the protest by revisiting its requirements and acquisition strategy and then either reaffirming its sole-source decision or making a new determination. MCG Energy Sols., LLC, B-420495.1, Feb. 22, 2022 (unpublished decision). Based on this corrective action, our Office dismissed the protest as academic. On August 26, citing FAR section 6.302-1, the agency published a new notice of intent to issue a sole-source contract to OATI for the requirement. Agency Report (AR), Tab A.1, Aug. 26 Notice of Intent.