Federal Manager's Daily Report

Though it is not uncommon for the U.S. Comptroller General

to uphold a company’s challenge of a contract awarded to a

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rival, it is unusual. In a recently published decision the

CG, referee of federal contracting disputes, has found that

Lockheed Martin Information Systems successfully challenged

an IT contract given by the Department of Housing and

Urban Development to Electronic Data Systems Corporation.

HUD had bid for services under its Information Technology

Solution (HITS) program.

The CG recommended that HUD reopen the bidding and correct

various failings it found in making the contract award.

Those HUD contracting shortcomings included miscalculating

the percentage difference between the cost of the two bids,

accepting without challenge EDS’s cost estimate of what

one of its subcontracts would be, and various other breaches

of established federal contracting procedures.

The decision, which could help other contracting officials

avoid similar mistakes, can be found here:

http://www.gao.gov/decisions/bidpro/292836.htm