Making Unsuccessful Protesters Pay? Enhanced Pleading Standards? A Look at Proposed Changes to GAO Protest Rules Under the 2025 NDAA

Back in 2017, in the 2018 National Defense Authorization Act (NDAA), Congress passed a limited program for GAO protests of Department of Defense contracts where certain large contractors would have to reimburse the DoD for the cost of processing unsuccessful GAO protests. We reviewed that rule here. Congress repealed that provision with the 2021 NDAA. Now, the “losing protester pays” system is back with a vengeance. The 2025 NDAA creates a similar provision, but now the language appears to apply to all businesses that bring an unsuccessful GAO protest on a DoD contract. Coupled with enhanced pleading standards and an increase to the task order value jurisdiction requirement, this will make GAO protests of DoD contracts more burdensome on federal contractors. With that said, it is important to note: The 2025 NDAA only orders that the GAO and DoD produce a proposal that addresses the above for review by Congress. It does not absolutely mandate that the government then adopt said proposal. We look at these changes in this post.

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FAR Council Establishes New Size and Status Rerepresentation Rules

The FAR Council recently published a final rule dealing with small business certification issues, effective on January 17, 2025. This final rule came about to ensure that certain parts of the FAR and SBA rules are consistent. The change? Adding additional circumstances that require an awardee to rerepresent its size and/or socioeconomic status for orders placed under a multiple-award contract (MAC) per FAR 52.219-28(c) Postaward Small Business Program Rerepresentation.

However, this FAR rule updates the regulation to match the SBA rule that had been issued in 2020, back when SBA consolidated its Mentor-Protégé Program. In the mean time, SBA had updated its recertification rules as discussed in this post outlining the new recertification rules. Under the recent regulation, SBA will be implementing its strategy to include new 13 C.F.R. § 125.12, which sets forth disqualifying size and status events, which would render a business “ineligible for future set-aside or reserved awards, including awards of set-aside or reserved orders against pre-existing unrestricted or set-aside multiple award contracts” if it causes the business to be other than small. In addition, “for a multiple award small business set-aside or reserve, a concern that recertified as other than small or other than the required small business program would be ineligible to receive options.

Unfortunately, the FAR rule will have to be updated again to deal with SBA’s January 2025 rule. Until then, below is what the FAR rule contains. Contractors must be aware of both rules to stay on top of their small business recertification requirements. And contractors may need to inform agencies about what the new SBA rules state.

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Why File: A GAO Bid Protest Intervention

When contractors think of GAO Bid Protests, most think of the process from the perspective of the protester. However, the contract awardee is not without a voice in the bid protest process at GAO. While the agency will generally defend the contract award decision regardless, the awardee itself can also have a seat at the table. In this installment in our “Why File” series, we will explore why a contractor would want to file an intervention in a GAO Bid Protest.

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New OCI Rule Contains Big Changes

The proposed OCI rule implementing the Preventing Organizational Conflicts of Interest in Federal Acquisition Act has just dropped. We started discussing the Act back in early 2023 after it was passed in late 2022, and I outlined my predictions at the Court of Federal Claims judicial conference. This 108-page rule will propose some major changes for organizational conflicts of interest.

Here is a summary of some of the big changes proposed in this new rule. For those concerned about potential organizational conflicts of interest, the examples included in this proposed rule are greater in number than before, and very specific about the situations that may give rise to conflicts. This could empower agencies to look at OCIs more closely than they have in the past. Stay tuned for more updates on SmallGovCon.

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SmallGovCon Week in Review: January 13-17, 2025

Happy Friday! We hope you had a great week. We are already halfway through January and looking forward to see if the Chiefs can finish the three-peat!

The federal landscape has been busy, with updates spanning Buy America, small business dollars, and procurement complications, including Polaris protests. You can read more about these topics in the articles below. Have a great weekend!

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