1. Home
  2. |Insights
  3. |GAO’s Bid Protest Sustain Rate Soars, but Is There a Catch?

GAO’s Bid Protest Sustain Rate Soars, but Is There a Catch?

Client Alert | 24 min read | 11.06.23

On October 26, 2023, the U.S. Government Accountability Office (GAO) released its Annual Report on Bid Protests for Fiscal Year 2023.

The total number of protests filed and the number of protests sustained by GAO increased significantly compared to Fiscal Year 2022—and GAO’s “Sustain Rate” jumped to 31%.  GAO downplayed these increases to a degree, highlighting that it received “an unusually high number of protests challenging a single procurement”—the Department of Health and Human Services’ award of Chief Information Officer-Solutions and Partners 4 (CIO-SP4) government-wide acquisition contracts—which resulted in over 100 sustained protests.  Nonetheless, even excluding the CIO-SP4 protests, it appears that GAO’s “Effectiveness Rate” (the percentage of cases in which the protester received relief, such as voluntary corrective action or a GAO sustain) was comparable to prior years—at or near 50%.  Thus, bid protests remain an important oversight mechanism for the federal procurement system.

The most prevalent grounds upon which GAO sustained protests in FY 2023 were (1) unreasonable technical evaluations; (2) flawed selection decisions; and (3) unreasonable cost or price evaluations.  The most prevalent grounds for sustained protests over the past ten years are detailed in the table below:

GAO’s full statistics for FY 2023 are shown below:

Insights

Client Alert | 3 min read | 04.26.24

CFIUS Proposes Enhanced Enforcement and Mitigation Rules and Steeper Penalties for Non-Compliance

On April 11, 2024, the Committee on Foreign Investment in the United States (“CFIUS” or the “Committee”) announced proposed amendments to its enforcement and mitigation regulations, marking the first substantive update to CFIUS’s mitigation and enforcement provisions since the enactment of the Foreign Investment Risk Review Modernization Act of 2018.  The Committee issued a notice of proposed rulemaking ("NPRM”) that would modify the regulations that apply to certain investments and acquisitions, as well as real estate transactions, by foreign persons as follows:...