Centerline Logistics Corporation

The procurement

U.S. Transportation Command bought tug-and-barge transportation of jet fuel (JP5), marine diesel (F76) and commercial Jet-A between Atlantic and Gulf Coast ports under a fixed-price contract with a 1-year base and four 1-year options. Past/present performance was weighted approximately equal to price in a best-value tradeoff; Centerline offered $202,908,858.22 and awardee Vane Line Bunkering offered $203,300,742.22.

The protest

The agency held discussions with Centerline but never told it that its lack of past performance references for transporting aviation fuel was a concern. That gap kept Centerline at Satisfactory Confidence and led to award to a slightly higher-priced competitor. Centerline argued that the agency effectively treated the gap as a significant weakness and therefore had to raise it in discussions.

The agency’s answer

USTRANSCOM responded that it did not consider Centerline's lack of aviation fuel references to be a deficiency or significant weakness. It was a discriminator explaining why the agency could not justify a confidence rating higher than Satisfactory, so discussions did not need to address it.

What decided it

Discussions must cover deficiencies and significant weaknesses, not lesser weaknesses, even ones that end up deciding the award.

GAO denied the protest. Discussions must be meaningful and identify deficiencies and significant weaknesses, but agencies are not required to raise weaknesses that are not significant, even if those weaknesses later become determinative. The record showed the agency treated Centerline's lack of aviation fuel references as a distinguishing factor, not a deficiency or significant weakness.