NDAA: loser pays for protests

      The Senate version of the National Defense Authorization Act (NDAA) for fiscal 2018 could make losing a protest a lot more expensive.

      The provision applies only to companies with revenues of over $100 million in the previous year. Mostly large firms would be affected, but some small business contractors involved in distribution and manufacturing would be impacted as well.

      Under the NDAA proposal, if the Government Accountability Office denies a protest against the DOD, the protester would have to reimburse DOD’s costs for defending the protest.

      “It is unclear how the government would track or calculate its costs, but they could be significant,” Jon Williams, partner at PilieroMazza PLLC, wrote in a recent blog entry.

      Reimbursement might be avoidable if the protest is withdrawn, or partial upheld by GAO.

      The Senate bill also includes a provision to reduce the incentive for incumbent contractors to file protests to gain additional time (and money) performing the incumbent contract, Williams wrote.

More information: PilieroMazza blog entry: http://goo.gl/iPmFvc

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