Bid Protest

A bid protest is a formal legal challenge in which a company that submitted an offer, or intended to submit one, contests the conduct of a federal solicitation or the resulting contract award. Protests may challenge how the agency evaluated proposals, applied evaluation criteria, or whether the award complied with applicable law and regulations.

What is a Bid Protest?

A bid protest is filed when a contractor believes the government made an error in the procurement process. Under the Competition in Contracting Act, any "interested party", generally a company that submitted or could have submitted an offer, may protest a federal acquisition to one of three forums: the procuring agency itself, the Government Accountability Office (GAO), or the U.S. Court of Federal Claims (COFC).

Common protest grounds include: the agency applied evaluation criteria differently than stated in the RFP, the winning offeror failed to meet minimum requirements, the agency conducted improper discussions, or the source selection was otherwise flawed. A protest must identify specific legal or regulatory violations, dissatisfaction with the outcome alone is not grounds.

Protests filed at the GAO are governed by GAO's Bid Protest Regulations (4 C.F.R. Part 21). The GAO has 100 calendar days from the date of filing to issue a decision. Filing triggers an automatic stay of contract performance under CICA unless the agency head overrides it. Approximately 20-25% of GAO protests filed each year result in a sustained decision or voluntary corrective action by the agency.

Why Bid Protests matter for government contractors

Protests serve as a check on agency discretion and give contractors a remedy when procurement rules are not followed. A sustained protest can result in reevaluation of proposals, a new source selection process, or a complete resolicitation, giving losing offerors a second chance to compete. Even a denied protest can yield valuable intelligence: GAO decisions are published and reveal exactly what evaluators looked for, making them one of the best free resources for improving future proposals.

Example

A small IT services firm submits a proposal for a DHS network modernization contract and loses the award. After reviewing the award notice and requesting a debriefing, the firm believes the agency assigned a "weakness" to their technical approach that was not supported by the RFP's evaluation criteria. The firm files a GAO protest within 10 days of the debriefing, triggering an automatic stay of the awardee's contract. The GAO sustains the protest, directing the agency to reevaluate proposals under the correct criteria.

Frequently Asked Questions

How long does a GAO bid protest take?

The GAO has a statutory 100-day deadline to issue a decision from the date the protest is filed. Express option protests are resolved in 65 days. The timeline is firm and rarely extended.

Can I protest a federal contract award if I did not submit a proposal?

Generally no. To be an "interested party" at the GAO or COFC, you must have been an actual or prospective offeror whose direct economic interest was affected. A company that chose not to bid typically lacks standing.

Does filing a protest stop work on the awarded contract?

Filing at the GAO triggers a mandatory automatic stay under CICA, which prohibits the agency from authorizing contract performance for the duration of the protest, unless the agency head overrides the stay by finding urgent and compelling circumstances.

What happens if a protest is sustained?

The GAO recommends corrective action, which can include reevaluating proposals, amending the solicitation, or conducting a new competition. Agencies comply with sustained protest recommendations in nearly all cases.