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B-291307.5 1 (2006-05-19)

handle is hein.gao/gaocrptaskz0001 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: Veolia Water North America Operating Services, LLC

           File:        B-291307.5; B-298017

           Date:        May 19, 2006

           Kenneth A. Martin, Esq., for the protester.
           Robert E. Little, Jr., Esq., Department of the Navy, for the agency.
           Guy R. Pietrovito, Esq., and James A. Spangenberg, Esq., Office of the General
           Counsel, GAO, participated in the preparation of the decision.
           DIGEST

           1. In negotiated procurements for privatization of utility system assets, protester
           has not shown that the agency erred in determining that 10 U.S.C. § 2688(f)(2)
           prohibited the conveyance of utility assets under a proposed scheme in which the
           protester would contract to operate and maintain the utility system assets and would
           not retain title in the assets, but would simultaneously transfer title in the assets to
           an unrelated third party which the agency was required to acknowledge as the
           primary obligor for the purchase price of the assets.

           2. Protest requesting GAO's recommendation based upon a promissory estoppel
           theory of detrimental reliance by the protester upon alleged actions of the agency
           that are not grounded upon an asserted statutory or regulatory violation will not be
           considered because the Competition in Contracting Act of 1984 only authorizes GAO
           to decide bid protests concerning alleged violations of a procurement statute or
           regulation.
           DECISION

           Veolia Water North America Operating Services, LLC protests the conduct of
           negotiations by the Naval Facilities Engineering Command (NAVFAC), Department
           of the Navy, under request for proposals (RFP) No. N62470-00-R-3602, issued by
           NAVFAC's Atlantic Division to competitively select parties for the privatization
           (including the transfer of title to private parties) of potable water and wastewater
           collection utility systems in North Carolina, Virginia, and West Virginia (collectively

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