A proposed fee for filing bid protests with the Government Accountability Office could have the biggest impact on agencies and small businesses.

 

Large systems integrators that are competing for multimillion- or multibillion-dollar contracts would not be put off by a flat fee of roughly $240 to file a protest with GAO against an agency's award decision. But companies at the other end of the contracting spectrum will likely face a tough question: Is it worth protesting a small contract?

 

"It will have a chilling effect on the little guy who is filing a protest ‘pro se' on a potential decision to go ahead with the protest," said attorney John Chierichella, a partner at Sheppard Mullin Richter and Hampton who has worked on many bid protest case.

 

More than 50 percent of protests are filed by small companies, and more than 60 percent are filed against defense contracts, said Ralph White, managing associate general counsel for procurement law at GAO.  Read full article.

While their views varied to some degree, federal agency officials and advocacy groups GAO contacted identified a number of challenges that small, minority-owned businesses may face in pursuing federal government contracts. For example, officials and advocacy groups pointed to a lack of performance history and knowledge of the federal contracting process as significant barriers. Officials from advocacy groups cited additional challenges, such as difficulty gaining access to contracting officials and decreased contracting opportunities resulting from contract bundling—the consolidation of two or more contracts previously performed under smaller contracts, into a single contract. Officials from agencies that accounted for 70 percent of federal contracting with small, minority-owned businesses—(the Departments of Defense, Health and Human Services, and Homeland Security, and the General Services Administration) told GAO that they conducted outreach to help small, minority-owned businesses with these challenges. Their outreach efforts include one-on-one interviews between contracting office staff and businesses seeking federal contracts. Linguistic and cultural barriers were identified as a challenge on a limited basis.

Federal agencies GAO contacted collected and reported some information on the contracting assistance provided to small disadvantaged businesses—including those that are minority-owned. Two agencies GAO reviewed collected and reported data by minority group. The Minority Business Development Agency in the Department of Commerce—created to foster the growth of minority-owned businesses of all sizes—reported that its business centers helped these businesses obtain 1,108 financings and contracts worth over $3.9 billion in fiscal year 2011. For the same fiscal year, the Small Business Administration (SBA) reported that more than 90 percent of its primary business development program participants were minority-owned businesses. Federal agencies that GAO contacted said that the goals SBA negotiated with federal agencies for contracting with various socioeconomic categories, including small disadvantaged businesses, provided some information on efforts to assist minority-owned businesses. In fiscal year 2011, agencies GAO contacted met their prime contracting goal and three out of four agencies met their subcontracting goals. GAO generally found limited data on participants in agency outreach efforts because the agencies are not required to, and therefore generally do not, collect data on the minority group or socioeconomic category of businesses that participate in outreach events for federal contracting opportunities. Read the full study.