STG fights for lost $17.8M HUD contract

STG joins the ranks of many incumbents who have lost contracts and then had to turn to a bid protest to try to hang onto it.

STG Inc. has filed a second bid protest after losing an incumbent contract for the second time.

In the fall, STG filed a protest with the Government Accountability Office after losing a Housing and Urban Development contract to Sanametrix Inc., a Washington, D.C.-based IT services provided. Sanametrix won the $17.8 million contract in late September to support HUD’s inspector general’s office.

STG has held the support contract since 2012 and after filing with GAO, HUD pulled Sanametrix’s award back as part of a corrective action to re-evaluate the bids.

But as we’ve seen multiple times – winning a corrective action, doesn’t necessarily mean an ultimate victory. STG lost the contract for a second time.

And again, STG has filed a bid protest with GAO. A decision is expected by Sept. 14.

The big question though is whether HUD sees something in the protest that convinces it needs to take another corrective action or whether the protest goes all the way through to a GAO decision.

The prospects for STG aren’t great if goes through to a decision because the majority of the time, GAO sides with the agency.

But at the same time, as an incumbent, STG really owes to itself to keep fighting for the contract.

In this case, the work supports the HUD inspector general’s distributed computing environment. The work includes support and maintenance of equipment, networks, support for a data center recompete, mobile device support, infrastructure support, and a wide variety of other support services.

The $17.8 million contract has a six-month base and four one-year options.