Difference Between a Government Bid Protest and a Contract Dispute

For government contractors, there are two primary mechanisms to address disputes related to federal government contracts: filing a government protest and filing a Contract Disputes Act (CDA) claim. While both processes aim to resolve disputes related to government contracts, they are distinct and differ in their procedures and outcomes.

When it comes to disputes related to federal government contracts, government contractors have two primary options: first learn how to protest a government contract award or filing a Contract Disputes Act (CDA) claim if there is a problem with contract performance. Although both mechanisms aim to resolve disputes, they have different procedures and outcomes.

A bid protest is a formal challenge to a decision made by a federal agency during the procurement process. Interested parties, such as bidders or offerors who feel they have been unfairly treated or disadvantaged, can file a protest. The bidder must file the protest within a specified timeframe, which is typically within ten calendar days after the basis of the protest is known or should have been known. The protest must identify the specific grounds for the challenge and provide detailed evidence to support those grounds. The agency will review the protest and issue a decision within 30 calendar days. If the protest is denied, the bidder may file an appeal with the Government Accountability Office (GAO) within ten calendar days. The GAO will review the protest and issue a binding and final decision.

On the other hand, a CDA claim is a formal claim made by a contractor against the federal government for a dispute related to a government contract. This type of claim can cover issues such as payment, breach of contract, or other disputes. To file a CDA claim, the contractor must submit a written claim to the contracting officer, providing details about the dispute and the relief being sought. The contracting officer will review the claim and issue a decision within 60 days. If the contractor is dissatisfied with the decision, they can appeal to the agency board of contract appeals within 90 days. The agency board will review the claim and issue a binding decision, which can only be appealed to the Court of Federal Claims or the Federal Circuit Court of Appeals.

Bid Protest

A bid protest is a formal challenge to a decision made by a federal agency during the procurement process. It can be filed by an interested party, typically a bidder or offeror who believes they were unfairly treated or disadvantaged during the procurement process.

What is the Government Contract Protest Process?

The government contract protest process refers to the procedure by which a disappointed bidder or offeror challenges the award or proposed award of a government contract. The specific steps and requirements may vary depending on the jurisdiction and the agency involved, but there are some common elements typically found in the process. Here is a general overview of the steps involved in a government contract protest:

1. Filing a protest: The protester must submit a formal written protest to the appropriate agency within a specified timeframe, usually within a few days after the basis for the protest is known. The protest should outline the grounds for the challenge and provide supporting evidence.

2. Agency or Court review: The agency will review the protest and assess its merits. This may involve gathering additional information, reviewing contract documents, and conducting an investigation into the allegations raised in the protest.

3. Decision by the Court or Agency: The agency will issue a decision on the protest, either upholding the award or taking corrective action. This decision may be in the form of a written determination explaining the agency’s rationale.

4. Further action: Depending on the outcome of the agency’s decision, the protester or the agency may choose to take further action. This could involve requesting reconsideration of the decision, filing an appeal with an administrative body or board, or pursuing legal action in a court of law.

It’s important to note that the specific rules and procedures governing government contract protests can vary significantly depending on the jurisdiction and the agency involved. Therefore, it is advisable to consult the applicable laws, regulations, and agency-specific guidelines when pursuing a government contract protest.

Here are the steps for how to file a government contract protest after or before a government contract award:

1. File within the required timeframe: The bidder must file the protest within a specified timeframe, which is usually within ten calendar days after the basis of the protest is known or should have been known.
2. Identify the grounds for the protest: The protest must identify the specific grounds for the challenge and provide detailed evidence to support those grounds.
3. Send a copy to the agency: The protest must be sent to the contracting officer, the agency protest official, and the Government Accountability Office (GAO).
4. Review by the agency: The agency will review the protest and issue a decision within 30 calendar days.
5. Appeal process: If the protest is denied, the bidder may file an appeal with the GAO within ten calendar days.
6. Decision by the GAO: The GAO will review the protest and issue a decision, which is binding and final.

Contract Disputes Act Claim

A CDA claim is a formal claim made by a contractor against the federal government for a dispute related to a government contract. It is a claim for payment, breach of contract, or other type of dispute.

Here are the steps for filing a CDA claim:

1. Submit a claim: The contractor must submit a written claim to the contracting officer, providing details about the dispute and the relief being sought.
2. Review by the contracting officer: The contracting officer will review the claim and must issue a decision within 60 days.  In not, the contractor can deem the claim denied and move to the appeal process
3. Appeal process: If the contractor is dissatisfied with the decision, they can appeal to the agency board of contract appeals within 90 days.
4. Decision by the agency board of contract appeals: The agency board will review the claim and issue a decision, which is binding unless it is appealed to the Court of Federal Claims or the Federal Circuit Court of Appeals.

In summary, filing a bid protest challenges a specific decision made by a federal agency during the procurement process, while filing a CDA claim seeks to resolve a broader dispute related to a government contract. Contractors should carefully consider their options and seek legal advice before initiating either process, as both can be complex and require specific evidence to support the claim.

Contract Disputes

In 1978, the Contract Dispute Act (“CDA”) was enacted to set forth procedures to  deal with disputes.  This CDA process applies to all disputes arising under or relating to a government contract.

To file a case with either the Board of Contract Appeals of U.S. Court of Federal Claims, you want to make sure that you have followed the administrative process under the Contract Dispute Act. Failure to follow this important process, and receipt of a contracting officer’s final decision can cripple your case on appeal.

It is advisable to seek legal advice from a government contract claims and dispute lawyer that understands the process. See more information about contract dispute resolution.

Bid Protest

Filing a government contract bid protest, on the other hand means that you are exercising your rights under GAO and procurement laws to convince the court that the agency did not follow its solicitation criteria or that the source selection evaluation decision was unreasonable. Another approach is to look at a bid protest as occurring before contract performance. 

For further assistance with either a contract dispute or how to file a government contract protest, call government contracts attorneys at 1-866-601-5518.