CWIS, LLC

B-416530 Sep 14, 2018 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights CWIS, LCC, of Colorado Springs, Colorado, protests the issuance of a sole-source purchase order to P.K. Management Group, Inc. (PKMG), of Doral, Florida, under sole-source justification No. JOFOC1818, issued by the Department of Housing and Urban Development (HUD), for a 12-month contract to provide field service management (FSM) services1 for properties in Illinois (identified by the agency as area 3A). CWIS argues that HUD lacked a valid basis to award a sole-source contract on the basis of unusual and compelling urgency, and that the urgent circumstances were invalidated by the agency's lack of reasonable planning. We deny the protest. We deny the protest. View Decision DOCUMENT FOR PUBLIC RELEASE The decision issued on the date below was subject to a GAO Protective Order. No party requested redactions; we are therefore releasing the decision in its entirety. Decision Matter of:  CWIS, LLC File:  B-416530 Date:  September 14, 2018 Rene B. Ugarte, Esq., and Andrew Newell, Esq., Whitcomb, Selinsky, McAuliffe PC, for the protester. Les Sternberg, for P.K. Management Group, Inc., the intervenor. Audrey Roh, Esq., and Julie K. Cannatti, Esq., Department of Housing and Urban Development, for the agency. Paul N. Wengert, Esq., and Tania Calhoun, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Protest that agency improperly awarded a sole-source contract to provide property management services is denied where the record shows that the agency's justification that unusual and compelling urgency required obtaining services from the contractor that was able to begin full performance at the end of the previous contract, without a transition period, was reasonable. DECISION CWIS, LCC, of Colorado Springs, Colorado, protests the issuance of a sole-source purchase order to P.K. Management Group, Inc. (PKMG), of Doral, Florida, under sole-source justification No. JOFOC1818, issued by the Department of Housing and Urban Development (HUD), for a 12-month contract to provide field service management (FSM) services[1] for properties in Illinois (identified by the agency as area 3A).  CWIS argues that HUD lacked a valid basis to award a sole-source contract on the basis of unusual and compelling urgency, and that the urgent circumstances were invalidated by the agency's lack of reasonable planning.  We deny the protest.  BACKGROUND The procurement at issue is HUD's action to obtain a successor FSM contractor for HUD area 3A.  Before this procurement, the FSM requirement for area 3A had been awarded to another contractor.[2]  The contract resulted from a competition for multiple contracts (for multiple HUD areas) that were awarded in mid-2017 as small business set-asides under solicitation No. DU204SB-17-R-0002.  AR at 2 n.1.  HUD deemed Contractor A's performance unsatisfactory and, after several lesser measures were unsuccessful the contracting officer informed Contractor A on April 23, 2018, that the agency would not exercise the option to extend the term of the contract beyond the base period; instead, the contract would end at the conclusion of the base period, on May 31.  As a result, the agency needed a replacement contractor to be in place on June 1 to begin full performance without a transition.  HUD determined that a contractor would therefore need to have credentialed staff and offices in place, and "'experience' providing these services for HUD specifically in Contract Area 3A."  AR at 4.  HUD also determined that it would not be feasible to complete a competitive procurement for the replacement contract by May 31 because the agency's experience showed that a full and open competition for FSM services had typically taken at least 10 months to complete.  HUD determined that only PKMG could meet the agency's requirement to transition to full performance on June 1.  Accordingly, between May 31 and June 18, HUD prepared and approved a justification and approval (J&A) for other than full and open competition based on unusual and compelling urgency to justify the award of a sole-source contract to PKMG.  AR Tab 12, FBO.gov Sole-Source Notice, at 2-3.  The sole-source justification explains that HUD required FSM services to market, preserve, and protect approximately 500 HUD-owned properties in Illinois that would otherwise be at risk of adverse occupancy and damage by vandals and thieves while vacant, that would then become a blight on their communities.  Id., exh.