EDS, Lockheed file new HITS protests

GAO report

Both Lockheed Martin Corp. and EDS have filed new protests over the contested HUD Information Technology Services (HITS) contract, three months after General Accounting Office officials decided a challenge from EDS's rival bidder Lockheed Martin Information Systems in Lockheed's favor.

The Housing and Urban Development contract was awarded to EDS in August, but Lockheed protested first to HUD, and then to GAO after HUD officials denied the protest. GAO upheld the protest in December, ruling that HUD had misevaluated the proposals.

Lockheed's new protest alleges that HUD's new solicitation, issued after the original protest was settled, still favors EDS, according to a company statement.

"Though we regret that it is necessary to file a second protest, it is important to preserve the integrity of our industry's competitive processes and strive to ensure customers and taxpayers benefit from a best value decision," said company officials in the statement.

EDS, meanwhile, has been performing transition work since August, according to an EDS spokesman. That's given Lockheed an in-depth understanding of EDS's solution that will give them an advantage when they submit a new bid, said spokesman Kevin Clarke.

"They've had visibility into our transition work. They've had debriefs," he said.

"Lockheed has gained extensive insight into EDS's solution, while EDS has not received any comparable information regarding Lockheed's solution," said EDS spokesman Bill Ritz.

The protest asks GAO to limit the new request for proposals to the specific parts of the contract that GAO addressed in its initial decision, Ritz said. Otherwise, Lockheed will have an unfair advantage, Ritz said.

The contract is for one base year and 10 option years, and could be worth $860 million if HUD exercises all the options, Clarke said. It includes moving the agency from its old system to HITS, and then providing management services.

HUD had set a March 12 deadline for new proposals and then extended it to March 31.

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