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GAO: Bid Protests Are Not Hindering DOD Projects

A sharp increase in bid protests on Defense Department contracts in 2008 does not indicate a trend or a growth in “frivolous” protests, the Government Accountability Office said.

In a report to Congress, GAO said the number of DOD protests declined from 2004 through 2007, relative to the department’s procurement spending, before increasing by 24% in 2008. GAO pointed out that DOD procurement spending increased by 15% that year. In addition, a new law expanded protest rights to cover large task and delivery orders.

GAO does not try to identify frivolous protests. The agency said it has adequate procedures to weed out protests that are without merit and cautioned Congress against imposing penalties for frivolous protests: “The imposition of penalties on protesters could result in a chilling effect on the participation of contractors in both the protest process and federal procurement as a whole.”

“In our experience, there are many instances in which protesters may file a protest in good faith that is nonetheless based on either a misunderstanding of the facts or misapprehension of the law,” GAO said. “This may occur more commonly with small business protesters or protesters not represented by counsel.”

GAO found no evidence that protests are unduly delaying Defense projects. It said more than half of DOD protests are closed within 30 days and all are closed within 100 days, as prescribed by law. DOD has the right to proceed with a protested contract if it determines that the work is urgent.

The report is number B-401197, available at www.gao.gov.


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