Defense Contractors Could Face Pay-Back Clause for Losing Bid Protests

Congress could make it more difficult for companies to protest contract awards, particularly those made by defense and military agencies.

Language within the Senate’s National Defense Authorization Act would reform the way the Government Accountability Office addresses bid protests, which have increased with frequency in recent years.

The NDAA language would “require contractors who file bid protests with the Government Accountability Office on a contract with the Department of Defense to pay to the Department of Defense costs incurred for processing a protest at the Government Accountability Office and the Department of Defense when such a protest is filed by a party with revenues in excess of $100 million during the previous year where all of the elements of such protest are denied” by GAO.

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