United Capital Investment Group (SPE60524R0206)

B-423169,B-423169.2 Feb 13, 2025 Jump To FULL REPORT VIEW DECISION RELATED PAGES GAO CONTACTS Highlights United Capital Investment Group (UCIG), a business of Dubai, United Arab Emirates, protests the award of a contract to Stonewin Capital LP, a business of Edinburgh, Scotland, under request for proposals (RFP) No. SPE60524R0206, issued by the Defense Logistics Agency (DLA) for various types of fuel. The protester contends that the agency unreasonably "either did not perform a price realism analysis" on the awardee's price "or performed a faulty price realism analysis." Protest at 1. We deny the protest. View Decision DOCUMENT FOR PUBLIC RELEASE The decision issued on the date below was subject to a GAO Protective Order. The entire decision has been approved for public release. Decision Matter of: United Capital Investment Group File: B-423169; B-423169.2 Date: February 13, 2025 Christopher R. Shiplett, Esq., Randolph Law, PLLC, for the protester. McKenzie F. Miller, Esq., and Scott M. Heimberg, Esq., Akin Gump Strauss Hauer & Feld LLP, for Stonewin Capital LP, the intervenor. Kelsey Brown, Esq., Steven M. Sosko, Esq., and Brian V. Beirne, Esq., Defense Logistics Agency, for the agency. Hannah G. Barnes, Esq., and Christina Sklarew, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Protest that the agency unreasonably failed to evaluate whether awardee’s pricing was realistic is denied where the solicitation did not expressly require the agency to conduct a price realism analysis, and where the protester’s factual assertions regarding the awardee’s pricing is not supported by the record. DECISION United Capital Investment Group (UCIG), a business of Dubai, United Arab Emirates, protests the award of a contract to Stonewin Capital LP, a business of Edinburgh, Scotland, under request for proposals (RFP) No. SPE60524R0206, issued by the Defense Logistics Agency (DLA) for various types of fuel. The protester contends that the agency unreasonably “either did not perform a price realism analysis” on the awardee’s price “or performed a faulty price realism analysis.” Protest at 1. We deny the protest. BACKGROUND The agency issued the RFP on April 15, 2024, under Federal Acquisition Regulation part 12, acquisition of commercial items. Agency Report (AR), Tab 3, RFP at 1. The agency sought the procurement of burner fuel oil, diesel fuel, and automotive gasoline at various locations in Germany. Id. at 5-6. The RFP contemplated the award of a fixed-price with economic price adjustment requirements contract, to be performed from the date of award through September 30, 2028. Id. at 1. Award would be made on a lowest-price, technically acceptable (LPTA) basis, considering price and a technical capability factor, which included three subfactors: a statement of compliance, a certificate of analysis or certificate of quality, and a licensure and supply commitment letter.[1] Id. at 32-33. Offerors were to submit unit prices in Euros for each line item, which would then be multiplied by the estimated quantity to produce a total price for the line item. Id. at 34. The RFP advised that the lowest price would be determined by evaluating each line item independently and provided that an individual award would be made for each line item. Id. As relevant here, the solicitation stated that DLA “reserves the right to conduct a price realism analysis” and cautioned offerors that if a submitted price was too low, the contracting officer “may reject a proposal as unacceptable or assess it as a technical risk to the [] proposal.” Id. at 1. Further, the RFP advised that the agency “may review prices to determine whether they are so low that they reflect a lack of technical understanding of the requirement.” Id. On April 3, prior to issuing the RFP, the agency completed an independent government cost estimate (IGCE) for the procurement, which calculated an estimated total value for this requirement as €65,733,915 Euros. AR, Tab 2, IGCE at 1-2. As relevant here, this estimate used average market prices in Germany for the three types of fuel sought by the RFP. Id. Further, as part of its market research, the agency examined the Argus Oil Market Report for Germany, an aggregate index approximating the prices of fuel in different regions of Germany. Contracting Officer’s Statement and Memorandum of Law (COS/MOL) at 2; AR, Tab 1, Oil Market Report at 1. The RFP included “base reference prices” that were the high weekly posting prices from the week of January 1, 2024, to January 5, 2024, as published in the above-referenced aggregate index.[2] RFP at 9. The agency received nine proposals by the June 28 due date for receipt of proposals and subsequently entered into discussions with offerors. COS/MOL at 4.