Government contractors enter protest season
Eric Crusius, partner at Holland & Knight, discusses the bid protests that come after the year-end spending spree, and why some companies are hesitant to undertake the process.
On the last business day of FY18, the Department of Defense booked more than $7 billion in contracts. Most government contracting vehicles see the most action in September, which means that October is when the most bid protests are filed. Eric Crusius, partner at Holland & Knight, says that protests are not an easy decision to undertake, because they mean possibly creating conflict with potential customers and business partners.
“This is a decision that companies that I talk to struggle with on a daily basis. Suing your own customers is not a really good way to drum up new business. There is a barrier there and I know some companies had a legitimate reason, and they think the wrong decision was made, but they didn’t file the protest because they want to do future business with that client,” Crusius said. “On the other hand, if the protest is written in a way that is not nasty, doesn’t take shots at the federal government and tries to point out potential errors that were made, the government customer usually understands this is the system that they are in.”