HUD may rescind EDS contract

The Housing and Urban Development Department is considering a recommendation to rescind an $860 million IT services contract it awarded to Electronic Data Services Corp., Plano, Texas.

The General Accounting Office last month recommended that HUD rescind and re-bid the contract following a protest by losing bidder Lockheed Martin Corp., Bethesda, Md., which had been the incumbent on the contract.

HUD has until Feb. 16 to follow the recommendation or respond with what actions it will take, said Scott Riback, senior attorney in GAO's Procurement Law Division.

In sustaining Lockheed Martin's protest of the HUD Information Technology Services contract award to EDS, GAO said: "HUD essentially applied a more exacting standard in reviewing one proposal than it did in reviewing the other proposal."

The two contractors should submit revised proposals to HUD, which will then make a new award decision, GAO said.


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