What remedies are available when a bid protest is sustained?

UPDATED: Jul 18, 2023Fact Checked

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Jul 18, 2023

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UPDATED: Jul 18, 2023Fact Checked

A sustained bid protest entitles the person who made the protest to certain remedies. These remedies, or available restitutions, will vary depending on the nature of the violation that led to the protest.

What is a bid protest?

A bid protest is a legal action that is designed for use in a situation where a party is dissatisfied with the way a government contract is awarded, handled, or otherwise organized. Usually a bid protest occurs when a government contract is awarded to a business or provider and someone else– either a government official or another provider– protests the way the decision was made. The bid process for government projects must comply with certain requirements, including transparency and objectivity, in order to ensure that public funds are spent wisely. When the government chooses a company or entity to do a job or manage a project, various requirements must be met. If those requirements aren’t met, a bid protest can arise.

How can a bid protest be remedied?

Should the case move forward and the protestor prevail in a court of law, he or she may be entitled to remedies. In most situations, the remedy takes the form of a correction to the contract or its procedure. Should the court agree that the contract did not go forward as it should have, they will likely order the existing contract thrown out and the process repeated according to procedure. In some cases, if the issue caused major inconvenience or loss for the protestor, the court will also award monetary damages in an amount determined to equal the losses caused by the issue.

If you believe there were procedural irregularities in a government bid in which you were involved, you should consult with an experienced lawyer as soon as possible to find out what your options are and what your potential remedies may be.

Case Studies: Remedies for Sustained Bid Protests

Case Study 1: Construction vs. Government Agency

A reputable construction company, filed a bid protest after a government agency awarded a contract to a competitor under suspicious circumstances. The protest alleged violations of transparency and objectivity in the bid process.

After a thorough review, the court sustained the bid protest, finding evidence of irregularities in the awarding process. As a remedy, the court ordered the existing contract to be terminated, and the project was rebid following proper procedures. Additionally, Construction was awarded monetary damages to compensate for the losses incurred due to the unfair contract award.

Case Study 2:  Technology vs. Federal Department

A technology solutions provider, filed a bid protest against a federal department, claiming that their bid was mishandled, resulting in their disqualification from the procurement process.

The bid protest was sustained by the court, and it was revealed that there were indeed errors in evaluating Technology’s bid. As a remedy, the court ordered the department to reevaluate all bids, including Technology’s, using proper evaluation criteria. The court also directed the department to provide a fair opportunity for Technology to compete for the contract.

Case Study 3: Services vs. State Agency

A small business enterprise, protested against a state agency’s award of a contract to a larger corporation, alleging favoritism and biased decision-making.

The bid protest was sustained by the court, which found evidence of bias in the awarding process. As a remedy, the court nullified the existing contract and ordered the state agency to reassess all bids without any prejudice. Moreover, Services was granted monetary compensation for the damages incurred due to the unfair award.

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Jeffrey Johnson

Insurance Lawyer

Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

Insurance Lawyer

Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.

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