It’s no secret to anyone that the landscape of federal government contracting has been rapidly changing in recent years. For instance, there have been concerns that mentor-protégé joint ventures under the SBA’s Mentor-Protégé Program have been too successful. More recently, changes have been made to small business contracting goals to reduce the agency level requirements for small disadvantaged business (including 8(a) Program) prime contracts. Today, based on a recent GAO report, we are going to take a look at the current state of GAO bid protests which, if you didn’t know, have been around for nearly a century!
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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 Congress repealed that provision with the 2021 NDAA.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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