Automatic Stay (CICA Stay)

An Automatic Stay, often called a CICA Stay, is a mandatory suspension of contract award or contract performance that takes effect by operation of law when a disappointed offeror files a bid protest with the Government Accountability Office (GAO) within a specific time window. The stay requires the agency to halt its contracting action without any additional court order or agency decision; the filing of the protest itself triggers the obligation.

What is the Automatic Stay?

The Competition in Contracting Act of 1984 (CICA), codified at 31 U.S.C. 3553, establishes the automatic stay mechanism. When a GAO protest is filed within ten calendar days after contract award, or within five calendar days after a required debriefing is offered (whichever is later), the contracting agency must immediately suspend performance of the contract and may not authorize any new work. If the protest is filed before award, the agency may not make the award while the protest is pending.

The stay remains in effect until GAO issues its decision, which must occur within 100 calendar days of the protest filing (or within 65 days under the express option). Unless the agency invokes an override (see below), the contractor in place cannot continue work and the protesting firm has an opportunity to have its arguments adjudicated before any further public funds are committed.

The override mechanism allows an agency to proceed despite a pending GAO protest if the agency head determines in writing that urgent and compelling circumstances significantly affecting interests of the United States will not permit waiting for GAO's decision, or that proceeding with the acquisition is in the best interests of the United States under 31 U.S.C. 3553(d)(3). Override decisions are themselves subject to challenge in federal court.

Why it matters for contractors

For an incumbent contractor whose award has been protested, the automatic stay means that work must stop, often abruptly, until GAO rules or the agency overrides the stay. This can disrupt staffing, supply chains, and ongoing service delivery. Contractors who receive new awards should plan for the possibility of a stay by monitoring the protest filing window carefully.

For protesting offerors, the automatic stay is a powerful right. It prevents the agency from locking in a competitor's performance while the protest is under review, preserving the practical value of a favorable decision. Without a stay, agencies could award, perform, and close out a contract before GAO had a chance to rule, rendering any protest victory meaningless.

Contractors should confirm with counsel whether their specific protest triggers the automatic stay and whether any override risk exists before making staffing or mobilization decisions tied to award timing.

Example

Agency X awards a three-year IT services contract to Vendor B. Vendor A, an unsuccessful offeror, receives notice of the award on June 1 and files a GAO bid protest on June 9, within the ten-day window. The automatic CICA stay immediately takes effect. Agency X notifies Vendor B that it cannot begin performance. GAO reviews the protest and issues a decision within 100 days. During that period, Vendor B cannot invoice for any new work and Vendor A's protest is adjudicated on its merits before a single dollar of the contract is expended.