HUD's $705m HITS is again given to EDS

Following a protest and recompetition that took a year, the Housing and Urban Development Department this month awarded a contract for its IT infrastructure to the original winner, EDS Corp.

[IMGCAP(1)]Under the HUD Information Technology Systems contract, EDS will furnish personnel, hardware and software, telecommunications, facilities and services needed to deliver basic IT functions at more than 80 HUD offices nationwide.

The contract has a base period of four months, followed by nine optional years with a total potential value of $750 million.

EDS will upgrade desktop systems and servers for 18,000 users and supply enterprise data processing and management, information security, LAN and WAN services, and Web administration.

Lockheed Martin Corp. had been the incumbent IT provider since 1990. When HUD awarded the HITS contract to EDS last August, Lockheed filed a bid protest with the Government Accountability Office. GAO agreed with Lockheed that HUD did not justify its choice of the higher bid from EDS.

Subsequently, both companies filed dueling complaints. HUD reopened the competition in February. Lockheed Martin can choose to accept the decision or to protest the bid again.

About the Author

Mary Mosquera is a reporter for Federal Computer Week.

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