Though it is not uncommon for the U.S. Comptroller General
to uphold a company’s challenge of a contract awarded to a
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:
