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B-295376 1 (2005-02-08)

handle is hein.gao/gaocrptaqtu0001 and id is 1 raw text is: A G A O Comptroller General . Accountability * Integrity * Reliability of the United States United States Government Accountability Office DOCUMENT FOR PUBLIC RELEASE Washington, DC 20548 The decision issued on the date below was subject to a GAO Protective Order. This redacted version has been approved for public release. Decision Matter of: American Water Services, Inc. File: B-295376 Date: February 8, 2005 Sheila C. Stark, Esq., and Thomas C. Wheeler, Esq., DLA Piper Rudnick Gray Cary US LLP, for the protester. Kenneth A. Martin, Esq., Martin & Associates, for Hardin County Water District #1, an intervenor. Danica S. Irvine, Esq., Defense Logistics Agency, for the agency. Edward Goldstein, Esq., and Christine S. Melody, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST 1. Protest alleging agency improperly assumed that regulated offerors presented lower risk than non-regulated offerors in its evaluation of proposals for privatization of wastewater and storm water utility systems is denied where the solicitation provided that proposals would be evaluated based on the degree to which long-term price and service stability were enhanced as a result of regulation by an independent federal, state, or local regulatory authority with jurisdiction over the applicable utility service, and where the record shows that the agency reasonably concluded that regulated utility offeror presented low risk under evaluation subfactor relating to long-term price and service stability. 2. Agency's determination that the awardee's prices for wastewater and storm water utility services were fair and reasonable, that the work could be performed at the prices proposed, and that the awardee's proposal represented low risk for price realism was reasonable where the agency based its conclusion on extensive consideration of the awardee's pricing strategy, the elements of its pricing, and the detailed breakdowns of its price structure, as well as the agency's comparison of the awardee's price with the government's cost estimate and the agency's consideration of the awardee's status as a regulated entity. 3. Offeror's proposal for wastewater and storm water utility services was not rendered unacceptable where it proposed rates that were contingent upon approval by an independent regulatory body after contract award. DECISION

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