Innotion Enterprises, Inc. (86544B19R00002)

B-420846.7,B-420846.8 Feb 14, 2024 Jump To FULL REPORT VIEW DECISION RELATED PAGES GAO CONTACTS Highlights BLM Companies, LLC, a small business located in Washington, Utah, and Innotion Enterprises, Inc., a small business located in Fairfax, Virginia, protest the award of multiple indefinite-delivery, indefinite-quantity (IDIQ) contracts to 24 Asset Management Corporation, of Miami, Florida; Spectrum Solutions Acquisitions, LLC, of Salt Lake City, Utah; and JGM Property Management Group, of Shelby Township, Michigan, under request for proposals (RFP) No. 86544B19R00002, issued by the Department of Housing and Urban Development (HUD) for field service contract managers. The protesters challenge HUD's evaluation of their past performance. We deny 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: BLM Companies, LLC; Innotion Enterprises, Inc. File: B-420846.7; B-420846.8 Date: February 14, 2024 Douglas P. Hibshman, Esq., Jung Hyoun Han, Esq., and Dana L. Molinari, Esq., Fox Rothschild LLP, for the protesters. Antonio R. Franco, Esq., Eric A. Valle, Esq., Katherine B. Burrows, Esq., Jacqueline K. Unger, Esq., and Kelly A. Kirchgasser, Esq., Piliero Mazza PLLC, for 24 Asset Management Corporation; and Joyce Gill-Milaszewski, for JGM Property Group, Inc., the intervenors. Jose Montalvo-Rodriguez, Esq., Julie K. Cannatti, Esq., Justin D. Haselden, Esq., and Richard A. Marchese, Esq., Department of Housing and Urban Development, for the agency. Heather Weiner, Esq., and Jennifer D. Westfall-McGrail, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Protests that the agency unreasonably evaluated the protesters’ past performance are denied where the record shows the agency’s evaluation was reasonable and consistent with the terms of the solicitation. DECISION BLM Companies, LLC, a small business located in Washington, Utah, and Innotion Enterprises, Inc., a small business located in Fairfax, Virginia, protest the award of multiple indefinite-delivery, indefinite-quantity (IDIQ) contracts to 24 Asset Management Corporation, of Miami, Florida; Spectrum Solutions Acquisitions, LLC, of Salt Lake City, Utah; and JGM Property Management Group, of Shelby Township, Michigan, under request for proposals (RFP) No. 86544B19R00002, issued by the Department of Housing and Urban Development (HUD) for field service contract managers. The protesters challenge HUD’s evaluation of their past performance. We deny the protests. BACKGROUND HUD, through the Federal Housing Administration (FHA), insures lenders against the risk of loss on mortgages obtained with FHA financing. Agency Report (AR), Tab 24, RFP at 17. In the event of a default on an FHA-insured loan, the lender acquires title to the property by foreclosure or other acquisition method, files a claim for insurance benefits, and conveys the property to HUD. Id. After properties are conveyed, HUD manages and sells the conveyed properties to maximize the return of insurance funds. Id. To achieve this end, HUD administers a real estate disposition service through homeownership centers (HOC) located in Philadelphia, Pennsylvania; Atlanta, Georgia; Denver, Colorado; and Santa Ana, California. Id. Each HOC is responsible for real estate within a designated geographic area.[1] Id. HUD contracts for three types of management and marketing (M&M) services in these areas: property management services (performed by field service manager (FSM) contractors), asset management services, and mortgagee compliance management services. Id. at 18. Contractors awarded FSM contracts perform tasks such as property inspection, property security, cosmetic enhancements, and ensuring the property is “ready to show.” Id. Solicitation and Initial Awards Using the procedures in Federal Acquisition Regulation (FAR) part 15, HUD issued RFP No. 86544B19R00002 on February 5, 2021, seeking FSM services for 11 contract areas. BLM COS at 4. The solicitation contemplated the award of 11 fixed‑price (fixed‑unit rate) and cost-reimbursement IDIQ contracts,[2] one for each contract area.[3] RFP at 132. Each contract was to have a base period of performance of up to 12 months, with four 1-year option periods and a 6-month extension option. Id. at 22. The solicitation instructed that an offeror was permitted to propose on “multiple contract areas,” but that the offeror had to submit a single proposal, and that each area would “be evaluated based on its own merit.” Id. at 136. The solicitation established that proposals would be evaluated using technical acceptability, past performance, and price factors, and that award would be made using a best-value tradeoff between past performance and price. Id. at 145.