GAO Annual Report FY 2024: A Return to Business as Usual

The U.S. Government Accountability Office (GAO) 2024 Annual Report (Report) on bid protests provides a comprehensive overview of the trends, statistics and key issues in government procurement challenges over fiscal year (FY) 2024. This annual report to Congress is essential for understanding the dynamics of federal procurement challenges and the effectiveness of GAO oversight. The report not only offers a summary of overall bid protest filings, but also delves into the most prevalent grounds for sustaining protests, which provides valuable insights into areas where federal agencies may need to refine their procurement processes.

The Report signals that GAO protests remain an important mechanism for government oversight. Over half of GAO protests result in the protester receiving agency relief of some kind – whether that is through corrective action or a GAO sustain. Perhaps most notably, the FY 2024 report signals a return to "business as usual" following an unusual year of statistics in FY 2023 that were impacted significantly by the resolution of protests related to the Chief Information Officer-Solutions and Partners 4 (CIO-SP4) procurement.

Below we summarize key statistics and trends and offer insight into a few notable cases summarized by GAO in its Report.

Key Statistics and Trends

Overall Filings. The GAO received 1,803 cases, including protests, cost claims and requests for reconsideration in FY 2024. This represents an 11 percent decrease from the 2,025 cases filed in FY 2023.

Case Resolutions. A total of 1,706 cases were closed during the fiscal year. This includes 1,635 protests, of which 23.7 percent were issued merit decisions (either sustains or denials), 39 cost claims, and 32 requests for reconsideration. Interestingly, the Report also signaled an increase in the number of cases settled through alternative dispute resolution—an increase to 76 percent versus 69 percent in FY 2023.

Sustain Rate. The sustain rate for protests resolved on the merits was 16 percent in FY 2024. This is a significant decrease from the 31 percent sustain rate observed in FY 2023, however, statistics from FY 2023 were objectively skewed and influenced by the resolution of a high number of protests challenging a single procurement (i.e., CIO-SP4). The sustain rate for 2024 largely aligns with historical numbers from FY 2022 and 2021.

Effectiveness Rate. In 2024, GAO reports a 52 percent effectiveness rate, which is on par with recent years. This is perhaps the most important statistic in GAO's annual report. It is the measure of the percentage of protests in which the protester obtains some form of relief from the agency (either as a result of voluntary agency corrective action or the GAO sustaining the protest). The 52 percent figure means that either a voluntary corrective action or sustained protest occurs in more than half of protests filed.  

Impact of Specific Procurements. The Report highlights the unusual impact of a single procurement on the statistics for FY 2023. The U.S. Department of Health and Human Services' award of CIO-SP4 government-wide acquisition contracts led to an unusually high number of protests and two decisions that sustained 119 protests. This single procurement significantly contributed to the 31 percent sustain rate observed in FY 2023, illustrating how large multiple-award procurements can skew overall statistics.

Most Prevalent Grounds for Sustaining Protests

The Report also provides insight into the most common reasons for sustaining protests in FY 2024, which include:

• Unreasonable technical evaluation. This category involves cases where the GAO found that agencies did not reasonably assess the technical merits of proposals. For example, the GAO may find an agency's technical evaluation to be unreasonable, including where the contemporaneous record does not support the agency's conclusion that the awardee's quotation met solicitation requirements under an evaluation factor.
• Flawed selection decision. This category pertains to situations where the GAO determined that an agency's process for selecting a winning bid was flawed. For example, the GAO may find an agency's best-value tradeoff determination unreasonable because the underlying evaluation was flawed or inadequately documented.
• Unreasonable cost or price evaluation. This category involves cases where the GAO found that agencies did not reasonably evaluate the cost or price aspect of proposals. For example, the GAO may find an agency's price realism evaluation unreasonable because the record did not show that the agency considered whether the protester's technical approach could reasonably be performed at the proposed price.

It is also important to note that a significant number of protests do not reach a decision on the merits because agencies often take voluntary corrective action in response to the protests. This indicates that although the grounds listed above are the most prevalent for sustaining protests, they also likely influence agencies to reconsider their decisions even before a GAO decision is made.

Conclusion

The GAO's 2024 Report on bid protests underscores the dynamic nature of government procurement and the critical role of the GAO in ensuring fairness and transparency in the process. The overall number of cases filed has decreased, however, the effectiveness rate remains relatively high – greater than 50 percent – suggesting that protesters continue to find value in the GAO's bid protest mechanism. The significant impact of specific procurements, such as the CIO-SP4, on annual statistics highlights the importance of individual procurements in shaping the landscape of government contracting. Agencies and contractors alike should heed the lessons from the most prevalent grounds for sustaining protests to enhance the integrity and effectiveness of future procurements.

Holland & Knight's Government Contracts Group is experienced in GAO protests and can help contractors make informed decisions on whether to pursue a protest based on their individual circumstances. Please reach out to the authors for assistance or questions.