GAO ACTIVITY IN BID PROTESTS REMAINS STABLE IN FISCAL 2021

By Richard D. Lieberman, ConsultantThe Government Accountability Office (“GAO”) released its annual bid protest report to the Congress for fiscal year 2021 on November 16, 2021 (B-158766).    The GAO actually received 2,017 protests in fiscal year (“FY”) 2021 but dismissed or immediately denied a substantial number of them, while actually considering and issuing decisions on 581protests, known as “merit decisions.” This was a small increase compared to FY 2020.The GAO sustain rate remained stable at 15 percent in both FY 2020 and FY 2021.The other key GAO bid protest statistics for fiscal years 2017-2021 were as follows:GAO Bid Protest Statistics for Fiscal Years 2017-2021
FY2017FY 2018FY 2019FY 2020FY 2021
Merit decisions581622587545581
Sustained9992778485
Sustain rate17%15%13%15%15%
Effectiveness rate47%44%44%51%48%
Alternative Dispute Resolution (ADR) cases81864012476
ADR success rate90%77%90%82%84%
Hearings2% (17 cases)0.5%(5 cases)2% (21 cases)1%(9 cases)1%(13 cases)
The “effectiveness rate” declined somewhat, from about 51 percent in 2020 to 48 percent in 2021.  These are protests where the protester obtains some form of relief from the agency, either as a result of voluntary agency corrective action or the protest being sustained.The percentage of cases where the GAO conducted a hearing remained small—generally only 1 or 2 percent of the cases.GAO also reported that, as required by law:
  • There were no instances in which a federal agency did not fully implement a GAO recommendation in FY 2020; and
  • GAO issued its decision on every protest within 100 days, as required by law.
Finally, the GAO reported on the most prevalent reasons for sustaining protests that were actually resolved on the merits in FY 2021.   These were:
  1. Unreasonable technical evaluation;
  2. Flawed solicitation;
  3. Unreasonable cost or price evaluation; and
  4. Unequal treatment.
The GAO also noted that a significant number of protests it received did not reach a decision on the merits because agencies voluntarily took corrective action rather than elect to defend the merits of the agency action.  Agencies need not and do not report any of the many reasons they decide to take voluntary corrective actions. However, voluntary corrective actions taken by agencies are included in the “effectiveness rate” discussed previously.

Historical Posts about GAO Bid Protest Statistics

GAO Activity in Fiscal Year 2022GAO ACTIVITY IN BID PROTESTS REMAINS STABLE IN FISCAL 2021GAO SUSTAIN RATE AND EFFECTIVENESS RATE CONTINUE AT RELATIVELY STABLE RATES IN FISCAL 2020GAO Sustain Rate and Effectiveness Rate Continue at Relatively Stable Rates in Fiscal 2019

Related Post

Promote Innovation but Stay Between the Lines

In recent years, the Government has been focused on initiatives that promote efficiency and innovation in contracting. I love this initiative, but like all good things, innovation must be accompanied by critical thinking. Critical thinking should cause Contracting...

Trade Agreements and Country of Origin: What You Need to Know

Trade Agreements and Country of Origin: What You Need to Know

Trade agreements and country of origin requirements play a big role in international trade and government contracting. Let's break down what these terms mean and why they matter. Trade agreements are deals between countries that make it easier to buy and sell goods....