Link: GAO Opinion
Agency: Department of the Navy
Disposition: Protest denied.
General Counsel P.C. Highlight:
GAO denies the protest of USS Chartering, LLC, where it protests the award of a contract to Crowley Petroleum Services, Inc., under a request for proposals (RFP), issued by the Department of the Navy, Military Sealift Command, for ship charter services. USS Chartering argues that the award to Crowley Petroleum was improper because the awardee is affiliated with a firm that recently pled guilty to price fixing.
GAO denied the protest where the record showed that the CO was aware of the adverse information concerning the affiliate and considered the relationship of the two firms. The CO concluded from his review that the two firms were not so closely affiliated or jointly controlled such that the adverse information concerning the affiliate should be imputed to the awardee. Thus, the record showed that the CO was aware of and did consider whether the misconduct of the affiliate affected the awardee’s responsibility. Although USS Chartering challenged the adequacy and reasonableness of the CO’s investigation, the challenge did not present an exception to GAO rules barring consideration of challenges to an agency’s affirmative determination of responsibility.