GAO Upholds Contract Award to Company Owned By Government Employee

The GAO has upheld an agency’s award of a contract to a firm owned by a current Government employee.

In a recent bid protest decision, the GAO ruled that the Contracting Officer did not “knowingly” make the award in violation of the FAR because he was not aware of the owner’s employment status.  The GAO’s decision begs the question: with contractors required to submit so many representations and certifications, why is it permissible for a contractor to withhold the fact that it is owned or controlled by a current government employee?

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