[Protests of HUD Solicitation for Real Estate Management Services]

Three firms protested a Department of Housing and Urban Development (HUD) solicitation for real estate management services, contending that HUD failed to: (1) contact potential small business contractors for the procurement; and (2) clarify certain solicitation requirements. GAO held that HUD failed to: (1) ascertain whether potential small businesses were capable of performing the contract; and (2) clarify the level of financial responsibility required for contract performance. Accordingly, the protests were sustained, and GAO recommended that HUD: (1) investigate potential small business interest in the procurement and the responsibility of interested small businesses; and (2) reimburse the protesters for their protest costs.