As Mark Twain stated; ""There are three kinds of lies: lies, damned lies and statistics."
Having said that, I have not heard of the protocol specifically, but what they are attempting to do is control the extrapolation of a LOD lower than reasonable (in this case, they are controlling it to 1/5th the spike level).
For example, when calibrating pesticides to low level (1 -5 PPB injected) it is not uncommon for the calibration to be linear, but with a significant X intercept (indicating a fixed amount of analyte "disappears" in the instrument or prep). Now, when I pick my spike level, I choose a concentration that will be around the lower end of my calibration (after sample prep). Because I have a pretty good prep department and autosampler, my injections have a high level of precision, and hence a very tight standard deviation. When I do the math, it is very easy for the calculated concentration to fall below the intercept. In other words, my calculated LOD could never occur due to the behavior of this particular analyte.
I've been in situations where after a MDL study did not achieve a low enough MDL, it was suggested to rerun the study, spike at a higher concentration to improve statistics, and thereby get a "better" LOD (though clearly the lab had data indicating that it could not see as low as they wished).
I hope this helps. As I said, I've not specifically heard of the protocol you've mentioned, but I do understand what they are attempting to avoid.