Ervin and Associates, Inc., B-278850, March 23, 1998

B-278850 Mar 23, 1998 Jump To VIEW DECISION RELATED PAGES GAO CONTACTS Highlights DIGEST Protest that task order improperly exceeds the scope of the contract originally awarded is sustained. While the types of accounting support services required under the contract and the task order are quite similar. The scope of services under the contract is reasonably limited to serving the purpose for which the contract was awarded. Which was distinctly different from the purpose for which the task order was issued. Ervin argues that the task order is beyond the scope of Gardiner. Kamya's contract and that HUD should have conducted a competition for the acquisition. This characterization was followed by an example concerning a series of mortgage note sales from HUD's Single Family and Multifamily Mortgage Note Portfolios in the 1995-1996 time frame. View Decision Matter of: Ervin and Associates, Inc. File: B-278850 Date: March 23, 1998 DIGEST Attorneys DECISION Ervin and Associates, Inc. protests the Department of Housing and Urban Development's (HUD) decision to issue a task order to Gardiner, Kamya & Associates, P.C. under contract No. DU100C000018477, for accounting support services. Ervin argues that the task order is beyond the scope of Gardiner, Kamya's contract and that HUD should have conducted a competition for the acquisition. We sustain the protest. BACKGROUND Gardiner, Kamya's Contract On February 17, 1995, HUD issued request for proposals (RFP) No. DU100C000018424 as a set-aside for eligible firms under the Small Business Administration's (SBA) section 8(a) program. /1/ The solicitation anticipated the award of multiple indefinite quantity task order contracts that would be effective for a period of 24 months. RFP Sec. B-1 described the required services as "administrative, accounting, and analytical support services for a variety of planned or contemplated sales and/or restructuring of Federal Housing Administration (FHA) assets in accordance with [the RFP's statement of work (SOW)]." The SOW, set forth in section C of the RFP, bore the title "[FHA] Asset Sales Support Services." The SOW's introductory section elaborated upon the description of services above by characterizing them as a "broad range" of such services. RFP Sec. C.I. This characterization was followed by an example concerning a series of mortgage note sales from HUD's Single Family and Multifamily Mortgage Note Portfolios in the 1995-1996 time frame. Id. The contractor's services would "initially be required for activities which are involved in the conduct of a successful mortgage note sale" but, in addition, "restructuring and/or rehabilitation of projects in connection with sales to State Housing Finance Agencies may be required." Id. The SOW's background section, RFP Sec. C.II., provided a context for the required services: Beginning in FY 1995, [HUD] will undertake a program of project mortgage sales to reduce the size of the HUD-held mortgage inventory. . . . Most sales will occur in competitive, sealed bid auctions, but some sales of subsidized mortgages, both performing and nonperforming, will be negotiated with State or local Housing Finance Agencies. The services of a Contractor are needed to assist HUD in preparation for mortgage note sales transactions. The Contractor shall be responsible for the performance of an array of support services in support of four key HUD Headquarter offices that will play an instrumental role in the planned note sales . . . . . . . . . As other types of asset sales materialize, the Contractor may be tasked to support other offices within the [FHA]. The SOW's requirements section, RFP Sec. C.III., set forth seven categories of services, one of which was due diligence. RFP Sec. C.III.B. Due diligence was defined as the process of confirming and validating agency representations concerning the financial status and loan history of "notes offered for sale to the public." Id. The solicitation clearly stated that "[a]ll due diligence services shall be provided under a task order . . . in conjunction with a particular sale." The remaining paragraphs under the due diligence heading described the activities and requirements the contractor might be tasked to perform "in support of HUD's Single Family and/or Multifamily loan sale programs." These activities included such things as collecting and reviewing various documents related to projects for sale; conducting physical inspections, environmental reviews, and title searches of projects securing mortgages in auctions; providing services associated with borrower settlements in conjunction with a sale; assembling collected data into bid packages; and facilitating HUD's marketing of the loan sales, the recordation and analysis of bids, and loan sales closings. Id. The last category of services was for the refinancing/restructuring of HUD-held and insured mortgages. RFP Sec. C.III.G.