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B-289111 1 (2001-12-12)

handle is hein.gao/gaocrptamtd0001 and id is 1 raw text is: G A 0 Comptroller General SIntegrity Reliability of the United States ~ccountabthty Inert Rea iy United States General Accounting Office DOCUMENT FOR PUBLIC RELEASE Washington, DC 20548 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: Deutsche Bank File: B-289111 Date: December 12, 2001 Stephen Sale, Esq., Claxton, Sale and Quinn, for the protester. Richard J. Conway, Esq., and Bradley D. Wine, Esq., Dickstein Shapiro Morin and Oshinsky, for Real Estate Recovery, Inc., an intervenor. Peter F. Pontzer, Esq., Department of Housing and Urban Development, for the agency. Ralph 0. White, Esq., and Christine S. Melody, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Protest alleging that, in connection with procurement for loan support services, the awardee had an organizational conflict of interest that was not properly mitigated, is denied where the record shows that the contracting agency reasonably determined that the awardee's proposal adequately mitigated any conflict of interest through the use of a subcontractor to perform loan servicing on those properties where the awardee had previously been involved in handling administrative matters for the agency related to the same properties. DECISION Deutsche Bank protests the issuance of a task order to Real Estate Recovery, Inc. (RER) by the Department of Housing and Urban Development's (HUD) Office of Multifamily Housing Assistance and Restructuring (OMHAR) under request for quotations (RFQ) No. R-OPC-21968, issued to procure support services related to loans issued in support of HUD's Mark-to-Market program.' Deutsche Bank argues that the awardee has an organizational conflict of interest that the agency has failed to properly mitigate. In addition, it contends that the agency's evaluation was 1 HUD's Mark-to-Market program (referred to by HUD as the M2M program) exists to reduce rent payments to market levels under the agency's rental housing subsidy program, referred to as Section 8 housing. Agency Report, Memorandum of Law, at 1-2.

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