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9 Pub. Cont. Newsl. 1 (1973-1974)

handle is hein.journals/procurlw9 and id is 1 raw text is: 







   SECTION OF
   PUBLIC CONTRACT 'LAW
   AMERICAN BAR
   ASSOCIATION

Vol. 9, No. 1, October 1973                                     FEDERAL

                           Martin J. Harty, Editor, 14227 Georgia Ave.,
                              No. 104, Silver Spring, Maryland 20906


                 BID PROTESTS AND THE                         Court of Ap
              PROCUREMENT COMMISSION                          Scanvell Lab
                                                              courts in at le
                                                              alternative ho
                                                              awards, cithe
                  Thonia, F. Williamson of the                administrative
                    District of Columbia Bar                  court's grantimi
                                                              throughout tlh
     Most of the public debate and discussion concerning the  cations even t
     portion of the Report of the Commission on Govern-   on December
     ment Procurement on disputes and remedies has cen-    protest proced
     tered on the recommendations dealing with disputes   the procuring
     arising in connection with contract performance.I Less   As was the ca
     attention has been given to the eight recommendations  these procedu
     dealing with disputes related to the award of contracts, during the life
     or, in a more familiar parlance, bid protests.2 What     I However, I
     discussion there has been largely has been critical of the  the Study G
     apparent failure of the Commission to deal with the bid  apparent wea
     protest problem in a more fundamental way, as it did  required corre
     with the disputes arising in connection with contract  are covered in
     performance.                                             these weakne:
                                                              areas.5
         The Commission bid protest recommendations ad-          Perhaps th
     mittedly are unspectacular - prinarily ainling toward  the complaint:
     improvements in the existing system, rather than major   time-consuill
     change. However, the Commission arrived at the recoin-   criticism that
     mendations after careful consideration of numerous    procuring agei
     alternatives, many of which would have brought the sort  minimum   acc
     of major changes advocated by some who have been      found widespi
     critical of the present bid protest resolving system. These  private bar co
     alternatives were rejected because, in the judgment of   trative forums
     the Commission, they were less desirable from an overall tions, presuinl
     view than the present system. A brief summary of some  the one-sided
     of the alternatives, and their weaknesses, may be helpful protests; as w
     in understanding why the Commission recommended the  complaints cr
     present system be retained.                              mutually confl
                                                                 Another i
                      The Existing System                     decisions, evei
                                                              agency was in
     The existing system   for resolving bid protests was  remedy from
     undergoing several changes when the Commission's     tion of the col
     Remedies Studies Group began its studies in the fall of  it was charge
     1970. 'rhe changes continued to develop during the life  got little else.
     of the Commission. Basically, a protester had a right to  Finally, th
     take his protest to either the procuring agency, the  proper role in
     General Accounting Office (GAO), or both. In addition,   out tile studie
     by virtue of the February 1970 decision of the U.S.


STATE & LOCAL GOVERNMENT CONTRACTS
           Copyright @ 1973 American Bar Association




peals for the District of Columbia in
oratories, Inc. v. Shaj]'r,3 ie federal
ast some circuits were available as a third
rut within which to protest contract
r initially or after receiving an adverse
decision. But the ultimate effect of the
ig standing to protesters remained unclear
e Commission deliberations, and the itnpli-
oday are not fully resolved. Furthermore,
23, 1971, the GAO published new bid
lures designed to improve the GAO's and
agencies' methods of' handling protests.4
se with the Scanwell decision, the impact
res would have on the system was not clear
of the Commission.
transcending this somewhat fluid situation,
roup and the Commission found several
knesses in the bid protest system that
ction. Without going into the details that
the Study Group and Commission reports,
sses can be grouped into three general

e most important of the weaknesses were
s on the one hand that the system was too
ig, and, on the other hand, the conflicting
the systen, at least so far as the role of the
ncies and the GAO was concerned, lacked
eptable due process. The Commission
read suspicion anong contractors and the
ncerning the objectivity of these adminis-
  complaints about ex pare commnunica-
)tion of correctness in agency reports, and
  Government won-loss record on bid
ell as demands for faster decisions. These
ied out for resolutions that often were
licting.
inportant criticism was that the GAO
n when they indicated that the procuring
error, often failed to provide an adequate
the protester's viewpoint, such as cancella-
itract award, damages, or both. Too often,
d, the protester won on his principle, but

ie question of the GAO's jurisdiction and
deciding bid protests was raised through-
S.
                  (Continued on page 2)

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