If he's using a 90 degree conductor than you're a little off on your derating. #4/0 is rated at 260 amps in the 90 degree column which is used for derating.
260(2)= 520 amp(80%)=416 amps
Since this is a 3 phase feeder, wouldn't we use 70% as a multiplier since we would have 8 current carrying conductors if they were run in parallel?