Navigating the complexities of federal contract bid protests can be a daunting task, whether dealing with the Army Corps of Engineers, the Environmental Protection Agency, or any of the numerous federal agencies with contracting authority. Bid protests are formal, written objections raised by interested parties regarding the awarding or solicitation process of federal contracts. For businesses seeking to secure government contracts, understanding the nuances of bid protests is essential to ensure fair competition and compliance with procurement laws.
One effective way to grasp the protest process is to analyze the collective actions of protesters over time. This analysis can reveal patterns, motivations, strategies, and influences shaping individual protest decisions. In this context, the Government Accountability Office (GAO) Bid Protest Annual Report to Congress for Fiscal Year 2024 holds significant value.
Mandated by the Competition in Contracting Act of 1984 (CICA), the report provides detailed insights into bid protests filed with the GAO during the fiscal year. Key components include the number of protests, outcomes, common grounds for protests, and the effectiveness rate. By studying these elements, businesses can better understand the dynamics of federal contracting and position themselves for success.
Trends in Bid Protest Data
Figure 1. (GAO Annual Bid Protest Report to Congress FY2024)
FY2024 | FY2023 | FY2022 | FY2021 | FY2020 | |
Cases Filed | 1803 (down 11%)2 | 2025 (increase of 22%) | 1658 (down 12%) | 1897 (down 12%) | 2149 (down 2%) |
Cases Closed | 1706 | 2041 | 1655 | 2017 | 2137 |
Merit (Sustain + Deny) Decisions | 387 | 608 | 455 | 581 | 545 |
Number of Sustains | 61 | 188 | 59 | 85 | 84 |
Sustain Rate | 16% | 31% | 13% | 15% | 15% |
Effectiveness Rate | 52% | 57% | 51% | 48% | 51% |
ADR6 (cases used) | 76 | 69 | 74 | 76 | 124 |
ADR Success Rate | 92% | 90% | 92% | 84% | 82% |
FHearings | .2% (1 case) | 2% (22 cases) | .27% (2 cases) | 1% (13 cases) | 1% (9 cases) |
The data in Figure 1 highlights consistent trends, particularly a gradual decline in the number of protests filed over the past decade. For instance, filings in 2014 were just under 2,500, and the downward trend persists, except for FY2023, which saw a spike due to over 300 protests tied to a single solicitation. The protest data for 2023 is skewed by a single HHS solicitation (Chief Information Officer-Solutions and Partners 4) which received over 300 protests.
Outcomes of Interest
For contractors, the likelihood of a favorable outcome is a critical consideration. While the sustain rate—the percentage of protests upheld by GAO—favors the government, protesters still have opportunities to "win." In FY2023, the sustain rate hit a record 31%, largely due to 119 protests upheld in the CIO-SP4 procurement. Excluding such anomalies, the data suggests that agencies typically win over 80% of protests that proceed to a decision.
The effectiveness rate is another important metric. Defined as the percentage of protests resulting in relief for the protester – whether through agency corrective action or GAO sustainment – it has been remarkably stable, trending upward over two decades. This consistency reflects a reliable balance of agency corrective actions and GAO decisions.
Figure 2.
The concept of agency relief can be somewhat perplexing due to its broad definition. Relief may refer to a settlement with the contractor, but it can also mean the agency agrees to re-evaluate the solicitation or source selection process. However, this does not guarantee that the contractor will ultimately receive the award. In my experience, agencies that re-evaluate their source selection decisions typically provide more thorough documentation but rarely alter their original decision.
Common Grounds for Sustained Protests
The FY2024 report identifies the top three grounds for sustained protests as:
Unreasonable technical evaluation
Flawed selection decisions
Unreasonable cost or price evaluation
These reasons have remained consistent over time. Contractors considering a protest should carefully evaluate their grounds and select the most appropriate forum—agency-level protests, GAO, or the Court of Federal Claims—based on the nature of the dispute and available resources.
Alternative Dispute Resolution (ADR)
One encouraging trend is the high success rate of Alternative Dispute Resolution (ADR), which GAO offers during the bid protest process. ADR options include:
Outcome Prediction – GAO assesses the likely outcome if the protest proceeds to a decision.
Litigation Risk – GAO clarifies the risks and uncertainties associated with continuing the protest.
Negotiation Assistance – GAO facilitates discussions to help parties reach a mutually agreeable resolution.
With success rates consistently exceeding 90%, ADR offers an attractive alternative to full litigation, whether as an initial strategy or a later option during the protest process.
Conclusion
The GAO’s Annual Report provides critical insights for contractors navigating the bid protest process. By understanding trends, identifying effective strategies, and considering ADR, businesses can better position themselves to succeed in the competitive federal contracting landscape.
Jimm Rich
Senior Advisor
A member of the Dawson team since 2016, Jimm served as Chief of Contracting for the U.S. Army Corps of Engineers’ Baltimore, Kansas City and Galveston districts.
The views expressed here are those of the author and do not necessarily reflect the views of Dawson & Associates.
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