[Protest of HUD Rejection of Bid for Property Management Services]

B-249307: Oct 30, 1992

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A firm protested a Department of Housing and Urban Development (HUD) solicitation for management and related services for single family properties, contending that HUD did not specify realistic minimum and maximum quantities in the solicitation. GAO held that: (1) an indefinite-quantity contract was enforceable and binding, since HUD agreed to purchase a guaranteed minimum quantity of goods or services; (2) the solicitation did not require that the minimum guaranteed quantity be exactly the minimum that the government was to order, but only that it not exceed that amount; (3) the protester's contention that the maximum quantity stated in the solicitation was unrealistic had no merit; and (4) the allegation that the requirements to extend services conflicted with the requirement that indefinite-quantity contracts are for fixed periods of time was untimely. Accordingly, the protest was denied in part and dismissed in part.