Losing a bid is disappointing, but sometimes the award process itself was flawed. When you believe a construction contract was improperly awarded, you may have grounds for a bid protest. This guide explains when protests are appropriate, how to file them, and what to expect from the process.
What Is a Bid Protest?
A bid protest is a formal challenge to the award or proposed award of a construction contract. Protests typically allege that:
- The procurement process was flawed
- The winning bidder was improperly evaluated
- The agency violated procurement laws or regulations
- Your bid was wrongly rejected
Purpose of Bid Protests
The protest system exists to:
- Ensure fair competition
- Hold agencies accountable
- Correct procurement errors
- Maintain integrity in public contracting
Grounds for Bid Protests
Legitimate Protest Grounds
Procedural violations:
- Bid opening conducted improperly
- Evaluation criteria changed after bids opened
- Required procedures not followed
- Improper communications with bidders
Evaluation errors:
- Mathematical errors in scoring
- Criteria applied inconsistently
- Qualifications not properly assessed
- Best value factors ignored or misweighted
Bid form issues:
- Winning bid contained material defects
- Required documents missing
- Unbalanced bid not rejected
- Non-responsive bid accepted
Specification problems:
- Specs unduly restrictive
- Proprietary requirements without justification
- Ambiguous requirements applied unfairly
Conflicts of interest:
- Improper relationships with winning bidder
- Insider information shared
- Biased evaluation panel
Weak or Invalid Protest Grounds
Generally not valid:
- Disagreement with winner selection (absent errors)
- Losing by a small margin
- Unhappiness with the specifications
- Bidder's own errors or omissions
- General dissatisfaction with results
Before Filing a Protest
Gather Information
Request available documents:
- Bid tabulation: All submitted prices
- Award recommendation: Why winner was selected
- Evaluation documents: Scoring, notes, rankings
- Your bid evaluation: How you were scored
Assess Your Case
Ask yourself:
- Do I have specific, documented grounds?
- Is the issue procedural or just disagreement?
- What would I gain if successful?
- What are the costs and risks?
Consider Alternatives
Before protesting:
- Debrief: Request a formal debrief to understand the decision
- Informal resolution: Discuss concerns with the agency
- Accept the result: Sometimes moving on is better
The Bid Protest Process
Step 1: Know Your Deadlines
Protest deadlines are strict and vary by jurisdiction:
Federal (GAO):
- Within 10 days of knowing the basis for protest
- Within 5 days of debriefing (if requested and required)
Federal (COFC):
- No statutory deadline, but file promptly
- Laches (unreasonable delay) can bar claims
State and Local:
- Varies widely (5-30 days typically)
- Check specific agency protest procedures
- Often tied to award notice date
Step 2: Submit Written Protest
Your protest should include:
Required elements:
- Your company identification
- Solicitation and contract number
- Statement that it's a bid protest
- Clear statement of grounds
- Supporting evidence
- Requested relief
Best practices:
- Be specific and factual
- Cite applicable regulations
- Include all relevant documents
- State clear legal basis
- Organize logically
Step 3: Agency Response
The agency typically must:
- Acknowledge receipt
- Provide response timeline
- Gather relevant records
- Prepare agency report
- Submit position statement
Step 4: Review and Decision
The decision-maker will:
- Review all submissions
- May request additional information
- Evaluate legal and factual issues
- Issue written decision
Federal Bid Protests
Government Accountability Office (GAO)
The primary federal protest forum:
Jurisdiction:
- Federal procurements
- Both pre-award and post-award
- Subcontract protests (limited)
Process:
- File protest within deadline
- GAO notifies agency
- Agency files report (30 days)
- Protester comments (10 days)
- GAO decision (100 days standard)
Automatic Stay:
- Contract performance suspended if protest filed timely
- Allows for meaningful review
- Can be overridden for urgent needs
Court of Federal Claims (COFC)
Alternative federal forum:
Advantages:
- Discovery available
- Longer decisions possible
- Appeals available
Disadvantages:
- More expensive
- Slower process
- More formal procedures
Agency-Level Protests
Some agencies have internal processes:
- Often required before GAO
- Faster resolution possible
- Less formal procedures
- May preserve GAO rights
State and Local Protests
Common Features
Most state/local processes include:
- Written protest requirement
- Specific deadline from award
- Agency review and decision
- Appeal rights (varies)
Variations
Key differences by jurisdiction:
- Filing requirements: Some require bonds
- Stay provisions: May or may not halt award
- Decision timeline: Days to months
- Appeal options: Courts, boards, or none
Research Your Jurisdiction
For each agency:
- Review protest procedures in solicitation
- Check state procurement code
- Understand deadlines and requirements
- Know appeal options
Writing an Effective Protest
Structure Your Argument
Introduction:
- Identify the procurement
- State you're protesting
- Preview your grounds
Facts:
- Chronological background
- What happened
- What should have happened
Argument:
- State each ground clearly
- Cite applicable law/regulation
- Apply facts to law
- Show why you're right
Relief requested:
- What you want (re-evaluation, award to you, etc.)
- Be specific and realistic
Evidence to Include
Documentation:
- Solicitation documents
- Your bid/proposal
- Communications with agency
- Award notification
- Bid tabulation
Expert declarations (if relevant):
- Technical experts
- Industry standards
- Accounting analysis
Tone and Approach
Do:
- Be professional and factual
- Focus on process violations
- Cite specific evidence
- Argue the law
Don't:
- Attack individuals
- Make unsupported allegations
- Be emotional or angry
- Overstate your case
Potential Outcomes
Protest Sustained
If you win:
- Contract award to you: Sometimes
- Re-evaluation: More common
- Re-solicitation: If process was fundamentally flawed
- Bid cost recovery: Sometimes available
Protest Denied
If you lose:
- Decision explains why
- May have appeal rights
- Costs are yours
- Relationship impact to consider
Voluntary Corrective Action
Agency may voluntarily:
- Re-evaluate proposals
- Amend the solicitation
- Take other corrective action
- Avoid formal decision
Settlement
Parties may agree to:
- Corrective action
- Payment of costs
- Other resolution
- Dismissal of protest
Costs and Risks
Direct Costs
Protesting involves:
- Legal fees (often $10,000-$100,000+)
- Staff time for documentation
- Expert fees if needed
- Filing fees (some jurisdictions)
Indirect Costs
Consider also:
- Damaged relationships
- Reputation effects
- Time and distraction
- Opportunity costs
Risk Assessment
Evaluate:
- Strength of your case
- Value of the contract
- Long-term agency relationship
- Industry perception
Strategic Considerations
When to Protest
Consider protesting when:
- Clear procedural violation occurred
- Contract value justifies costs
- You have strong evidence
- Issue affects future procurements
- Principle matters to your business
When Not to Protest
Think twice if:
- Grounds are weak
- It's just sour grapes
- Relationship damage outweighs benefit
- Costs exceed potential recovery
- You'll never bid with agency again
Alternative Approaches
Instead of formal protest:
- Request thorough debrief
- Provide feedback to agency
- Improve future proposals
- Focus on next opportunity
After the Protest
Win or Lose
Learn from the experience:
- What worked in your process
- What could improve
- How to bid better next time
- Whether to bid again
Maintaining Relationships
After protesting:
- Remain professional
- Don't hold grudges
- Continue bidding if appropriate
- Demonstrate quality work
Conclusion
Bid protests are an important safeguard for fair competition in public construction contracting. However, they should be used judiciously when genuine violations occur, not as a routine response to losing.
Before protesting:
- Understand the process and deadlines
- Evaluate your grounds objectively
- Consider costs and relationship impacts
- Gather strong evidence
If you decide to protest:
- File timely
- Present a clear, factual case
- Focus on procedural violations
- Request appropriate relief
Remember that the goal of protests is to ensure fair competition. Use this tool when it's warranted, but don't let losing a bid automatically trigger a protest. Sometimes the best response is to analyze why you lost and improve your next bid.
ConstructionBids.ai provides detailed bid results and award information to help you understand procurement outcomes and make informed decisions about your bidding strategy.