What is a Bid Protest?

Avoid Costly Legal Mistakes By Not Meeting the Basic Requirements of Government Protest Procedures

Complying with the Government protest timeline becomes a tough subject when you put thousands of dollars into developing a bid protest and then you find out that you did not properly apply the government contract protest timeline requirements. At the end of the day, the rules are very strict. However, a unique set of facts could potentially save your company and give it a second bite at the apple.

A contractor may generally make a bid protest to the General Accountability Office, the awarding agency or the US Court of Federal Claims. Government contractors, small and large often believe that the contracting agency or the source selection team develops certain biases against one company or another. Although there can be some arguments to be made, the real questions when it comes to winning a government contract protest is to first know the acceptable grounds for filing and whether the Court of Federal Claims ( COFC) or General Accountability Office ( GAO) gives you the remedy you want, then if you still stand a chance of getting an award.

Bid Protest Definition and Meaning in Government Contracting

According to Government Accountability Office, the bid protest is a legal challenge to and formal declaration against the award or proposed government contract awards for goods and services or a challenge to the terms of a solicitation for such a contract.

Under government contract bid protest regulations, this type of litigation involves a protest where you, the interested party, challenge the award of a government contract or notice of intent to award a contract. When you file a formal case at GAO or US Court of Federal Claims (COFC) you must follow very specific bid protest procedures. Failure to follow them can get your case dismissed.

Whether you are filing a GAO bid protest or a protest before the U.S. Court of Federal Claims,  failure to meet the definition of a bid protest can get your case dismissed. You still have to carefully decide whether there is actual merit to your case, the likelihood of success, and whether the law supports your position.  These are critical decisions for corporate executives to make in such a short timeline. Read about CICA Automatic Stay Overrides for GAO Bid Protests – 31 USC 3553(d).

Impact of Your Decision to File a Government Contract Protest

 As a CEO, filing a government contract protest against government agencies is a tough choice. Many government contractors believe that doing so can potentially ruin existing agency relationships. However, the agency is also required to follow various procurement laws when evaluating and awarding federal projects. Under bid protest law, you have a legal right to fairly compete for government contracts under the Competition in Contracting Act.

There are specific GAO bid protest regulations that you must follow in order to keep the agency, or GAO, from dismissing your case for failure to follow the regulations. For example, GAO government contract protests requirements mandate that you must allege factual and legal allegations to support each protest. See information about What is the Best Value Contract Award Procurement Process?

The Process – What Should You Consider Before Filing a Bid Protest?

• Is there a valid reason for filing a protest? The government contract protest process requires you to state a legal and basis for your lawsuit. Looking at the solicitation requirements and then comparing the agency’s source selection actions or decisions is usually the first step in the process.  You want to make sure that you understand the grounds protesting government contract awards. See how to challenge a HUBZone contract award.
• Does your regular business lawyer understand the government contract protest process? This is a serious question to ask. Many companies spend tens of thousands of dollars only to find out that their personal lawyers are not fully experienced with the government contract protest process. There are very strict rules both at the Court of Federal Claims and at the GAO level.
• Will you have to pay a government fee if you don’t win the protest? Again, some agencies allow for vendors to protest a bid at no cost to the vendor. However, given the rising number of legally unsound protests, some agencies are beginning to require a bid protest fee from vendors that unsuccessfully protest. The government’s goal is to minimize frivolous protests or those initiated simply for the sake of trying to hurt the agency or winning vendor. See also SBA Fraud Cases – Defending Government Contract Fraud Allegations.
• Do you have to know the Federal Acquisition Regulations (FAR) to file a Government protest? The short answer is no. However, the source selection process will more than likely be governed by the FAR. Therefore, if your argument is that the government violated the law then your bid protest lawyer or person filing the protest will be at a disadvantage if they have no understanding of the regulations. See Special Rules When Appealing SBA COC & Small Business Certificate of Competency Decisions.

Where Can I Protest a Government Award?  Who can file a case under COFC and GAO bid protest regulations?

You have to be an “interested party” to file a government contract protest. Many cases are litigated on this very issue. You can avoid extensive litigation by letting a bid protest attorney help you with the analysis and filing. When there is a solicitation challenge, an interested party is generally a potential bidder for the contract. You can file a protest either at the agency level, GAO or the US Court of Federal Claims.

  If you are filing a GAO bid protest after the contract award, you want to make sure that you qualify as an interested party in order to intervene— an actual bidder that did not win the contract. In addition, your standing in the competition and the nature of the issues raised may affect whether you qualify as an interested party. See Consequences of Procurement Fraud Schemes & Avoiding Criminal Liability

There are several complex issues that can arise in COFC or GAO bid protests. When deciding to file, you want to narrow your concerns and make sure that your complaint against the agency action fits the specific jurisdiction of GAO. So many government contract protests get thrown out because GAO did not have the legal authority ( subject matter jurisdiction) to hear the case.

Government Contract Bid Protest Timelines

The challenge to filing a bid protest case is meeting the filing short deadlines. For example, a protest challenging the terms of a solicitation must be filed before the time for receipt of initial proposals (bid submission day).   On the other hand, if you file a GAO bid protest challenging the award of a contract, you must meet the government contract protest timeline by filing within 10 days of when you knew or should have known of the basis of the protest (a special case applies where, under certain circumstances, the protester receives a required debriefing) – this also applies to agency protest timelines.

•  Although the Court of Federal Claims does not have an official bid protest filing timeline, the government can create arguments that essentially limit the time for filing your bid protest.
• The Court of Federal Claims allows you to file a bid protest if you are late at the GAO.

Bid protest law – definition of intervening

As the successful offeror, you can participate in a case as an intervenor under bid protest law. Although there is no required timeline, you must intervene as soon as possible.

You are not required to participate in the protest since the protestor is actually challenging the government’s award action. Read information about the GAO Automatic Stay.

What is a protective order under bid protest rules?

To adequately participate in a bid protest, you may want to seriously consider retaining a government contract protest lawyer because he or she can be admitted into a protective order. The protective order prohibits disclosure of sensitive information during a protest. Generally, attorneys are admitted into a protective order. As a contractor, you will not be allowed given sensitive information at risk when challenging the award decision. 

Take Advantage of Commonly-Missed Strategies to Get Larger Government Contracts

Does Force Majeure Clauses Apply to Federal Government Contracts COVID 19

For additional information and legal advice or help with meeting the Court of Federal Claims or GAO government protest timeline after a government bid, call our bid protest attorneys at 1-866-601-5518.