Dynamic Access Systems, B-295356, February 8, 2005

B-295356 Feb 08, 2005 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights Dynamic Access Systems challenges the terms of request for proposals (RFP) No.RDEN-01965, issued by the Department of Housing and Urban Development (HUD) for a commercial off-the-shelf (COTS) software package to replace HUD's current Loan Accounting System for Housing the Elderly and Handicapped (LASHE), and for implementation and follow-on maintenance services for the new software. Dynamic argues that the RFP unduly restricts competition in two ways by requiring COTS software that can be installed on HUD computers, and by requiring that offerors "must have implemented their COTS package for at least one U.S. Federal Government agency." RFP at 3. We deny the protest. View Decision B-295356, Dynamic Access Systems, February 8, 2005 Decision Matter of: Dynamic Access Systems File: B-295356 Date: February 8, 2005 Katherine S. Nucci, Esq., and Timothy Sullivan, Esq., Thompson Coburn LLP, for the protester. Angela T. Puri, Esq., Department of Housing and Urban Development, for the agency. Ralph O. White, Esq., and Christine S. Melody, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Protest arguing that an agency overstates its needs by limiting competition to commercial off-the-shelf (COTS) loan software packages that can be installed on agency computers is denied where the record shows that requiring COTS software reasonably reflects the agency's need for a reliable product with a low risk of unsuccessful performance. DECISION Dynamic Access Systems challenges the terms of request for proposals (RFP) No.RDEN-01965, issued by the Department of Housing and Urban Development (HUD) for a commercial off-the-shelf (COTS) software package to replace HUD's current Loan Accounting System for Housing the Elderly and Handicapped (LASHE), and for implementation and follow-on maintenance services for the new software. Dynamic argues that the RFP unduly restricts competition in two ways--by requiring COTS software that can be installed on HUD computers, and by requiring that offerors "must have implemented their COTS package for at least one U.S. Federal Government agency." RFP at 3. We deny the protest. BACKGROUND HUD's current loan accounting software used in support of its elderly and handicapped housing programs has been in place since 1993, is considered by the agency to be antiquated, and has been a continual source of problems for the agency in terms of processing and maintaining mortgage loan information. Agency Report (AR) at 2. As the current software is not COTS, HUD has had difficulty finding programmers who are familiar with the software. In addition, HUD's current software does not comply with the functional requirements for direct loan systems mandated by the Office of Management and Budget's Joint Financial Management Improvement Program (JFMIP). [1] The ways in which the HUD software is not compliant with JFMIP requirements have been raised by HUD's Inspector General in recent reports. Id. at 3. In planning for the purchase of a new loan accounting system, HUD contracted for a review of the different available approaches. This review examined numerous options: upgrading the current software, outsourcing the function entirely, procuring COTS software, reengineering current software to operate on a mainframe platform, and reengineering current software to operate on a client-server platform. AR at 4. The review also included market research, a feasibility study, a risk analysis, and a cost-benefit analysis of the approaches identified. At the conclusion of the review, the results of the research and analyses were summarized in a System Decision Paper, wherein HUD's contractor set out each of the approaches and recommended one. Ultimately, the review recommended purchasing a specific COTS software package, known as Nortridge Loan Software. AR, Tab 9 (LASHE System Decision Paper) at 2-5. Despite this recommendation, the Decision Paper also acknowledged that the Nortridge software would not meet all of HUD's requirements without enhancement and advised that "[a]n open procurement may bring to light other software packages that were not found or were not available during the Feasibility Study." Id. After receipt of the study in May 2002, HUD's Office of the Chief Financial Officer decided to use full and open competition to procure a JFMIP-compliant COTS software package that could be installed onto HUD's computers. In addition, HUD decided to purchase support services for the "installation, implementation, software maintenance/operations support, post implementation support, minor software customization and training." AR at 5; see also RFP at 7. The RFP implementing this decision was issued on September 14, 2004, and anticipated award of a fixed-price contract for a base period of 1 year with four 1year options. RFP at 1.