Beware Bid Protest Settlements Promising Future Contract

Law360, New York (April 22, 2014, 12:51 PM EDT) -- It is relatively rare for bid protests filed with the Government Accountability Office to be resolved through a settlement agreement between the procuring agency and the protester. Usually, the protest is resolved by the agency voluntarily taking corrective (sometimes after the GAO has conducted outcome-prediction alternative dispute resolution) or by the GAO issuing a decision sustaining or denying the protest. Contractors who do attempt to settle their bid protests with the procuring agency in exchange for receiving a future contract award, however, need to be cautious because, as demonstrated by a recent GAO decision, the agency may not have the legal authority to grant the contractor the relief provided for in the settlement agreement....

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