GAO Upholds Agency Disqualification of Proposal Submitted During Pendency of Contract Novation Request

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Yesterday, our colleagues Alex Ginsberg, Travis Mullaney and Meghan Doherty published their Client Alert titled Government Contract Acquisitions and the Pending Proposal Problem. Their Alert discusses the U.S. Government Accountability Office’s (GAO) decision in Wyle Laboratories, Inc., a decision raising significant questions as to the viability of proposals that are submitted before or during, and remain pending after, a government contract acquisition.

Takeaways from the Wyle decision include

  • The GAO held that the U.S. Customs and Border Protection (CBP)
  • According to the GAO, agencies have significant discretion to disqualify any proposal submitted during the pendency of a novation where the purchaser would perform the bulk of contract requirements.
  • The GAO’s ruling compels contractors and their attorneys to think carefully about the timing and details of government contract asset purchases.