[Protest of HUD Rejection of Bid for Closing Agent Services]

A firm protested the Department of Housing and Human Development's (HUD) rejection of its bid for closing agent services, contending that new HUD bonding requirements resulted in its not being able to obtain an appropriate fidelity bond that met the requirements. GAO held that: (1) the new bonding requirements reasonably reflected HUD needs and did not prejudice bidders who were not incumbent contractors; and (2) HUD properly rejected the protester's bid, which proposed an unapproved surety that did not comply with the requirements. Accordingly, the protest was denied.