Competition in Contracting Act (CICA)

The Competition in Contracting Act (CICA) is the landmark 1984 federal law that mandated full and open competition as the default rule for government procurement and established the GAO's bid protest authority with an automatic stay of contract performance.

What is the Competition in Contracting Act?

CICA, enacted as part of the Defense Appropriations Act of 1984 and codified in 41 U.S.C. § 3301 et seq., fundamentally changed federal procurement by making competition the rule rather than the exception. Before CICA, agencies had broad discretion to limit competition or make sole-source awards with minimal justification. CICA imposed four major requirements:

1. Full and open competition as the default. Agencies must use competitive procedures, sealed bidding or competitive proposals, for all procurements. Restrictions on competition require written justification.

2. Written Justification and Approval (J&A) for non-competitive awards. When an agency uses one of seven statutory exceptions to avoid full and open competition, it must prepare a J&A documenting the legal basis. J&As above certain thresholds must be approved by senior officials and made publicly available.

3. GAO bid protest authority. CICA established the Government Accountability Office's formal authority to hear bid protests and established the automatic stay (CICA stay), a requirement that agencies suspend contract performance when a protest is filed timely with the GAO.

4. Competition Advocate. Each agency must designate a Competition Advocate responsible for promoting competition and reporting on non-competitive awards.

CICA's implementing regulations appear throughout FAR Part 6 (Competition Requirements) and are supplemented by the DFARS for defense procurements.

Why CICA matters for government contractors

CICA gives contractors legal standing to challenge procurement actions that improperly restrict competition. When an agency bundles requirements to favor an incumbent, writes specifications only one vendor can meet, or awards a sole-source contract without proper justification, CICA provides the legal basis for a protest. The automatic stay provision is particularly powerful, it halts contract performance while the GAO reviews the protest, giving the protesting contractor a meaningful remedy rather than just a post-hoc finding.

Example

A civilian agency awards a $12 million IT contract as a sole source to an incumbent vendor, citing the urgency exception. A competitor who believes the award was improper files a GAO protest within the CICA filing window. The CICA automatic stay kicks in, suspending the incumbent's contract performance. The agency, unwilling to accept the delay, takes voluntary corrective action, re-opening the competition. The competitor now has a fair shot at the award.

Frequently Asked Questions

What are the seven CICA exceptions to full and open competition?

The exceptions are: (1) only one responsible source; (2) unusual and compelling urgency; (3) industrial mobilization or R&D needs; (4) international agreement; (5) authorized or required by statute; (6) national security; (7) public interest. Each requires a written J&A.

How long does the GAO have to decide a CICA protest?

The GAO has 100 days from the protest filing to issue a decision. An express option allows resolution in 65 days when both parties agree. During this period, the CICA automatic stay generally remains in effect.

Does CICA apply to all government contracting?

CICA applies to most federal procurement. Exceptions include intelligence community contracts, certain small purchases, and contracts under other transaction authority (OTA), which operates outside the FAR framework and is not governed by CICA's competition requirements.

What is a "competition advocate"?

Each federal agency designates a Competition Advocate whose job is to promote full and open competition, review sole-source justifications, and report annually on competition metrics. The Competition Advocate is a check on agencies' tendency to take the easier path of restricting competition.