Chronos Solutions, LLC ()

B-418865 Sep 29, 2020 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights Chronos Solutions, LLC, of Irving, Texas, protests the award of sole-source contract No. 86614520D0002 to BLB Resources, Inc., of Irvine, California, by the Department of Housing and Urban Development (HUD) to provide asset management services in support of HUD's real estate owned properties in Wisconsin, Iowa, Nebraska and South Dakota (identified by the agency as Area 4D). The protester primarily argues that the agency's decision was improper because HUD did not solicit a proposal from the protester, which was the incumbent contractor. We deny the protest. View Decision DOCUMENT FOR PUBLIC RELEASE The decision issued on the date below was subject to a GAO Protective Order. The entire version has been approved for public release. Decision Matter of:  Chronos Solutions, LLC File:  B-418865 Date:  September 29, 2020 Justin A. Chiarodo, Esq., Stephanie M. Harden, Esq., and Michael J. Montalbano, Esq., Blank Rome LLP, for the protester. David S. Cohen, Esq., Laurel A. Hockey, Esq., John J. O’Brien, Esq., and Daniel J. Strouse, Esq., Cordatis LLP, for BLB Resources, Inc., the intervenor. Jonathan E. English, Esq., William Selinger, Esq., and Julie 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 Protest that agency improperly awarded a sole-source contract is denied where the record shows that the agency reasonably decided not to solicit a proposal from the protester, which was the incumbent contractor, and where the protester has not established that the agency’s award decision was otherwise improper. DECISION Chronos Solutions, LLC, of Irving, Texas, protests the award of sole-source contract No. 86614520D0002 to BLB Resources, Inc., of Irvine, California, by the Department of Housing and Urban Development (HUD) to provide asset management services in support of HUD’s real estate owned properties in Wisconsin, Iowa, Nebraska and South Dakota (identified by the agency as Area 4D).  The protester primarily argues that the agency’s decision was improper because HUD did not solicit a proposal from the protester, which was the incumbent contractor. We deny the protest. BACKGROUND By way of background, HUD, through its Federal Housing Administration, 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 one of the largest single sellers 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 9, Solicitation and Attachments for Area 4D, at 186.[1]  HUD relies on a variety of contractors to maintain and sell these properties throughout the country, including asset management contractors that are responsible for marketing and selling these properties.  Id. at 187. Through the procurement at issue, HUD seeks to obtain a successor contractor for asset management services for a geographic area identified by the agency as Area 4D.