Fed Gov Today

The Hidden Crisis in Federal Contracting: Why Protests Keep Winning

Jul 22, 2025
Chris Hamm, CEO of FIN Acquisitions and former director of FEDSIM at GSA, discusses the challenges in federal contracting, particularly frivolous bid protests. He explains a new Senate provision aiming to deter meritless protests, revealing its potential shortcomings. Hamm likens the protest process to football stoppages, proposing a model similar to the NFL’s challenge system to enhance efficiency. He also highlights communication gaps between contractors and government as key drivers of protests, advocating for better debriefing to minimize conflicts.
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INSIGHT

NDAA's Protest Clawback Flaws

  • Section 816 of the NDAA aims to disincentivize frivolous bid protests by clawing back profits during protest delays.
  • However, this mechanism fails due to appropriations law timing and difficulty calculating profits, making it ineffective.
INSIGHT

Incumbents Exploit Protest Delays

  • The current protest system incentivizes incumbents to file protests to delay transitions and preserve profits.
  • The definition of frivolous protests is blurred, as legal arguments are often complex and expensive to dismiss.
ADVICE

Adopt NFL-Style Protest Challenges

  • Use a challenge system like the NFL's to limit protests: allow only a few challenges that if lost, prevent further protests.
  • This method curbs frivolous protests effectively without costly legal battles.
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