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B-402324 1 (2010-02-26)

handle is hein.gao/gaobadbfh0001 and id is 1 raw text is: AlL A , GA O Comptroller General Accuntabiity * Integrity * Reliability of the United States United States Government Accountability Office Washington, DC 20548 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. Matter of: Energy Systems Group File: B-402324 Date: February 26, 2010 W. Bruce Shirk, Esq., Jessica M. Madon, Esq., and Townsend L. Bourne, Esq., Sheppard Mullin Richter & Hampton LLP, for the protester. Kenneth G. Wilson, Esq., Department of the Navy, for the agency. Jonathan L. Kang, Esq., and Ralph 0. White, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Protest challenging potential offeror's exclusion from competition on the basis of an organizational conflict of interest (OCI) is denied where the agency reasonably concluded that the protester's preparation of a report that was used to prepare a statement of work for a competitive solicitation created a biased ground rules OCI. DECISION Energy Systems Group (ESG), of Hampton Roads, Virginia, protests its exclusion from the competition under request for proposals (RFP) No. N40085-09--5083, issued by the Department of the Navy, Naval Facilities Engineering Command, for energy conservation and efficiency design-build services at Naval Station Norfolk, Virginia. ESG contends that the Navy unreasonably concluded that the protester's preparation of a study that was used by the agency to develop the statement of work (SOW) for the RFP created a biased ground rules organization conflict of interest (OCI) that required its exclusion from the competition. We deny the protest. BACKGROUND As part of ongoing government-wide efforts to reduce energy consumption, the Navy sought to improve the energy efficiency of facilities at Naval Station Norfolk. The agency sought to obtain the energy efficiency services through a utility energy service contract (UESC). Under a UESC, an agency may enter into a sole-source contract with a utility company for services where energy cost savings are shared

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