Bid Protest
A formal challenge by a losing bidder who believes a contract was awarded improperly — filed with the GAO, the Court of Federal Claims, or the contracting agency.
How It Works
Bid protests allow losing companies to challenge contract award decisions. The most common venue is GAO, which must issue a decision within 100 days. If GAO sustains a protest, it recommends the agency reevaluate proposals or resolicit. About 15-20% of GAO protests are sustained. Protests can delay contract work by months — the agency typically stops work (a "stay") until the protest is resolved. While protests serve as an important accountability mechanism, critics argue they're sometimes used tactically to delay competitors. The protest system helps ensure fair competition and compliance with procurement rules.
Related Terms
- Government Accountability Office (GAO) — The independent, nonpartisan agency that audits federal spending, investigates how taxpayer dollars are used, and reports findings to Congress.
- Competitive Bidding (Full and Open Competition) — The standard procurement process where the government publicly solicits proposals from multiple vendors and selects the best offer based on price, quality, and capability.
- Contracting Officer (CO) — The government official with legal authority to enter into, administer, and terminate federal contracts — the only person who can obligate the government.
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About This Definition
This definition is part of the TaxDollarData Federal Spending Glossary — 31 terms explaining how the U.S. government spends taxpayer money. All definitions are written in plain language for taxpayers, journalists, contractors, and researchers.