Protester Claimed Solicitation Placed Unreasonable Risk on the Contractor. But GAO Said Contractors Will Have to Deal.
The protester alleged that a solicitation for the delivery of fuel in Iraq placed unreasonable risk on the contractor. GAO was not sympathetic. Delivering fuel in Iraq is inherently risky.
DGCI Corporation, GAO B-421830.3
- Impossibility – The solicitation required delivery of fuel in Iraq. The protester argued that a requirement to obtain diesel from an oil distribution company in Southern Iraq was impossible to comply with. GAO disagreed. Several other offerors submitted proposals stating they could obtain the diesel from the required distribution company. This indicated the requirement was possible.
- Unreasonable Risk – The solicitation stated the agency would not be responsible for costs related to a fuel delivery that was not accepted. The protester argued a contractor could not control whether the fuel they obtained from the required refineries would be acceptable. Thus, this provision placed undue risk on the contractor. But GAO found the risk acceptable. Indeed, this kind of uncertainty is inherent to delivering fuel in Iraq.
The protester is represented by Lawrence J. Sklute of Sklute & Associates. The agency is represented by Christopher S. Colby, Celia M. DePaolis, and Steven M. Sosko of the Defense Logistics Agency. GAO attorneys Hannah G. Barnes and Christina Sklarew participated in the decision.
–Case summary by Craig LaChance, Editor in Chief
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