In order to have the necessary standing to file a protest at the Government Accountability Office (GAO), a protester must qualify as an interested party. The GAO’s bid protest regulations define an interested party as an actual or prospective bidder or offeror whose direct economic interest would be affected by the award of a contract or by the failure to award a contract. A protester may challenge the procuring agency’s evaluation of the awardee’s proposal as an interested party when there is a reasonable possibility that its proposal would be next in line for award if the protest is sustained. In post-award protests with an intervening offeror between the awardee and the protester, the protester’s economic interest may be considered too remote to qualify as an interested party to raise certain challenges against the awardee’s proposal. This is because when there is an intervening offeror that would be next in line for award should the protester’s protest be sustained, that intervening offeror is deemed to have a greater economic interest in the procurement. To establish standing in such procurements, the protester must challenge the agency’s evaluation of the intervening offeror to either show that it possesses the necessary economic interest to raise the pertinent challenges or otherwise demonstrate that its competitive position is subject to change based on the errors it identifies in the government’s evaluation.
In B-423259.3; B-423259.4, a bid protest decision issued on July 17, 2025, the GAO declined to address all but one of the protester’s allegations after determining that the protester’s economic interests were too remote due to the presence of an intervening offeror. The Defense Health Agency (DHA) issued a task order award for test and evaluation information technology services after conducting a best value tradeoff analysis. During the evaluation, the source selection authority compared the protester’s proposal to an intervening offeror and found that the intervening offeror’s proposal represented better value to the agency. Following this comparison, the DHA conducted a tradeoff analysis between the proposals submitted by the intervening offeror and the awardee and determined that the awardee’s proposal represented best value to the agency, primarily due to a 58 percent difference in the proposed price. In the post-award protest that followed, the protester challenged the DHA’s best-value tradeoff analysis that compared its proposal to that of the intervening offeror. The protester also disputed the sufficiency of the tradeoff analysis between its proposal and that of the awardee. Finally, the protester challenged the agency’s evaluation of the awardee’s past performance and also alleged that the awardee had violated the solicitation’s limitation on subcontracting clause.
The GAO first addressed the agency’s tradeoff analysis comparing the proposals of the intervening offeror and the protester but found no basis to conclude that the agency had failed to reasonably conduct or document its tradeoff decision. After making this determination, the GAO declined to entertain the remainder of the protester’s allegations because the protester was deemed to lack the necessary economic interest to raise them. The decision noted that the remainder of the protester’s allegations concerned the agency’s evaluation of the awardee’s proposal. The GAO pointed out that the DHA source selection authority had conclusively and definitively determined that the intervening offeror’s proposal represented a better value to the agency than that of the protester. Under these circumstances, even if the protester’s allegations concerning the awardee’s proposal were successful, the intervening offeror would be next in line for award. The decision noted that the protester had failed to raise the allegations concerning the past performance evaluation and the violation of limitation on subcontracting clause with respect to the intervening offeror’s proposal. Consequently, the protester had no discernable path to contract award even if these arguments were successful and the GAO declined to address the remaining allegations because the protester was not considered an interested party to raise them.
In post-award bid protests, a protester may challenge the procuring agency’s evaluation of the awardee’s proposal when there is a reasonable possibility that the protester’s proposal would be next in line for award if its protest is sustained. In practice, this means that when there is an intervening offeror between the protester and the awardee, that intervening offeror is considered next in line for award in case the protest challenging the award is sustained. In such protests, the protester does not possess the required standing to challenge certain aspects of the awardee’s proposal because its economic interest is considered too remote to qualify as an interested party. Therefore, the protester must challenge the intervening offeror(s) proposal to establish that it possesses the necessary interest to raise the relevant challenges or otherwise demonstrate that its competitive position is likely to change based on the errors it identifies in the government’s evaluation. In the absence of such a showing, however, the GAO will decline to entertain the merits of the protester’s arguments with respect to the evaluation of the awardee’s proposal.
This Bid Protest Insight is provided as a general summary of the applicable law in the practice area and does not constitute legal advice. Contractors wishing to learn more are encouraged to consult the TILLIT LAW PLLC Client Portal or Contact Us to determine how the law would apply in a specific situation.