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 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