Two Theories on the Up or Down of Bid Protests

Government Contracts Group partner Daniel R. Forman projects that the number of bid protest filings will increase in 2011. According to an article in Federal Computer Week, Forman offered two theories to support his claims; first, "as agencies make their cuts, they will spend less money and, as a result, award fewer contracts. With fewer contracts, there are fewer opportunities to file a bid protest. Ultimately, the number of bid protests will fall, if only slightly;" and second, "the budget cuts will increase the number of bid protests because each contract award will be more valuable to contractors, who are feeling the squeeze of their customers' tight budgets. A larger number of the companies that lose a competition will find protests worth the time and money. There's a chance an award would be overturned, which would give them another shot at winning the contract." Forman shared his thoughts during a webinar held by Crowell & Moring LLP on January 12, 2011 titled, "What Will the New Year Bring? Top Headlines, Headaches, and Legal Developments for Government Contractors to Watch in 2011."