GAO Protests Highlight Legal Risks in Government Contracting: Lessons from August 2023

August 2023 has proven to be a significant month with two noteworthy GAO protests. Legal professionals around the globe, particularly those working with or within corporate entities interested in government contracts, must take notice of these pivotal findings.

One of the protests brought forth explores the risks that come with the use of former federal employees for the purpose of proposal development. Specifically, the focus lies on the possibility that their previous access to non-public information might offer an unfair competitive advantage (JD Supra).

Throughout corporate history, it’s not uncommon for companies to hire ex-government employees due to their invaluable insights and experiences from within federal agencies. However, it’s crucial for organizations to ensure that they conscientiously manage the potential conflicts of interests that might arise, especially where access to non-public, sensitive information is concerned.

The second protest scrutinizes the restrictions set forth by the Buy American Act (BAA) and the risks associated with contracts awarded on the back of an inadequately supported waiver of those restrictions. Issues concerning waivers not properly supported can lead to significant complications down the line and potentially risk resulting contracts.

Given the complexities and potential risk surrounding these areas, corporations and legal professionals are urged to keep abreast of the developments in these matters. Both bid protest decisions provide valuable lessons for corporations, particularly those seeking to conduct business with the U.S. federal government. A thorough understanding and navigation of these legal barriers are key to secure and maintain successful government contracting relationships.

Perhaps the biggest takeaway from these protests is the essential role that legal professionals play in guiding companies through the maze of federal rules and regulations. It ultimately underscores the need for legal vigilance in proposals and contract awards that involve the federal government.