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B-419907 Sep 14, 2021 1 (2021-09-14)

handle is hein.gao/gaomef0001 and id is 1 raw text is: 1Oo U.S. GOVERNMENT ACCOUNTABILITY OFFICE A Century of Non-Partisan Fact-Based Work 441 G St. N.W. Comptroller General Washington, DC 20548 of the United States Decision Matter of: Innotion Enterprises, Inc. File: B-419907 Date: September 14, 2021 Al Espinoza for the protester. Julie K. Cannatti, Esq., Justin D. Haselden, Esq., and Audrey Roh, Esq., Department of Housing and Urban Development, for the agency. Jacob M. Talcott, Esq., and Jennifer D. Westfall-McGrail, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Protest challenging the agency's decision not to extend protester's current task orders and instead make award on a sole-source basis to another contractor is denied where agency's decision was reasonably justified. DECISION Innotion Enterprises, Inc. of Fairfax, Virginia, protests the decision of the Department of Housing and Urban Development (HUD) to procure on a sole-source basis property management services from DGG RE Investments, Inc. through contract No. DU204SA- 17-D-01. The protester contends that the agency's decision to solicit the services on a sole-source basis was arbitrary and capricious. The protester also contends the agency's decision not to extend Innotion's task orders was made in bad faith. We deny the protest in part and dismiss it in part. BACKGROUND HUD, through the Federal Housing Administration (FHA), insures lenders against the risk of loss on mortgages obtained with FHA financing. Contracting Officer's Statement (COS) at 1. 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. Due to these acquisitions, HUD has a need to manage the conveyed properties in a way to maximize the return of insurance funds. Id.

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