Lockheed upheld on HUD services protest

The General Accounting Office has upheld a Lockheed Martin Corp. protest of a Housing and Urban Development Department IT services contract worth $860 million to EDS.

Lockheed Martin filed its protest in September after HUD chose EDS for the nine-year HUD Information Technology Services contract, known as HITS.

HUD miscalculated its bid, argued Lockheed Martin, which had been the incumbent IT support provider under the HUD Integrated Information Processing Service contract since 1990.

'Lockheed Martin challenged the way the source selection process was [handled],' said Dan Gordon, GAO associate counsel.

Scott Riback, the GAO attorney who handled the protest, said the watchdog agency has recommended that HUD reopen negotiations with competitive bidders and re-award the contract. He did not say when that might happen.

HUD spokesman Michael Fluharty said "HUD is evaluating [the] recommendations."

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