BLB Resources, Inc. (86544A19R00003)

B-417870.2,B-417870.3,B-417870.4 Oct 01, 2020 Jump To FULL REPORT VIEW DECISION RELATED PAGES GAO CONTACTS Highlights Chronos Solutions, LLC, of Irving, Texas; Inside Realty, LLC, of Sylvan Lake, Michigan; and BLB Resources, Inc., of Irvine, California, protest the terms of request for proposals (RFP) No. 86544A19R00003, issued by the Department of Housing and Urban Development (HUD) for asset management services in support of HUD's real estate owned properties. The protesters argue that the terms of the solicitation, including estimates on which proposals are to be based and evaluated, do not accurately reflect the agency's needs in light of the coronavirus 2019 (COVID-19) pandemic. The large business protesters, Chronos and BLB Resources, also argue that the agency's decision to issue the RFP as a total small business set-aside was unreasonable. We sustain the protests. View Decision DOCUMENT FOR PUBLIC RELEASE The decision issued on the date below was subject to a GAO Protective Order. This redacted version has been approved for public release. Decision Matter of:  Chronos Solutions, LLC; Inside Realty, LLC; BLB Resources, Inc. File:  B-417870.2; B-417870.3; B-417870.4 Date:  October 1, 2020 Justin A. Chiarodo, Esq., Stephanie M. Harden, Esq., and Michael J. Montalbano, Esq., Blank Rome LLP, for Chronos Solutions, LLC; David S. Cohen, Esq., John J. O’Brien, Esq., and Daniel J. Strouse, Esq., Cordatis LLP, for Inside Realty, LLC; and Matthew T. Schoonover, Esq., and John M. Mattox II, Esq., Schoonover & Moriarty LLC, for BLB Resources, Inc., the protesters. Jonathan E. English, Esq., William J. Selinger, Esq., and Julie K. Cannatti, Esq., Department of Housing and Urban Development, for the agency. April Y. Shields, Esq., and Christina Sklarew, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Protests challenging the terms of a solicitation are sustained where the agency did not consider significant changes in the law, as well as the agency’s policies and market conditions, directly applicable to the single-family mortgage insurance program for which the solicitation seeks asset management services; and where consideration of these changes could likely materially impact the procurement. DECISION   Chronos Solutions, LLC, of Irving, Texas; Inside Realty, LLC, of Sylvan Lake, Michigan; and BLB Resources, Inc., of Irvine, California, protest the terms of request for proposals (RFP) No. 86544A19R00003, issued by the Department of Housing and Urban Development (HUD) for asset management services in support of HUD’s real estate owned properties.  The protesters argue that the terms of the solicitation, including estimates on which proposals are to be based and evaluated, do not accurately reflect the agency’s needs in light of the coronavirus 2019 (COVID-19) pandemic.  The large business protesters, Chronos and BLB Resources, also argue that the agency’s decision to issue the RFP as a total small business set-aside was unreasonable. We sustain the protests. BACKGROUND By way of background, HUD, through its Federal Housing Administration (FHA), is responsible for administering the single-family mortgage insurance program, under which it insures approved lenders against the risk of loss on loans financed for the purchase and rehabilitation of single-family homes.  In the event of default on an insured loan, the lender may acquire title to the property by foreclosure, a deed-in-lieu of foreclosure, or other acquisition method; file a claim for insurance benefits; and convey the property to HUD.  As a result, HUD “is the largest single seller of real estate in the [United States]” and “has a need to manage and sell a sizable inventory of single-family homes in a manner that promotes home ownership, preserves communities and maximizes return to the [agency’s] insurance funds.”  Agency Report (AR), Tab 27, RFP amend.