DGCI Fails to Show Iraq Fuel Delivery Requirements Are Too Risky

DGCI Corp. failed to demonstrate that the Defense Logistics Agency’s procurement for Iraq fuel deliveries places unreasonable risk on contractors, the Government Accountability Office said in a decision released Thursday.

DGCI argued that the request for proposals unreasonably requires contractors to obtain diesel fuel from Oil Products Distribution Company refineries in southern Iraq. The RFP said the agency isn’t responsible for costs related to deliveries that are rejected for not meeting specifications, and that contractors can’t control whether OPDC refineries meet fuel specifications, DGCI said.

But an agency has discretion to structure a contract competition in a way that imposes ...