Protest after Award
FAR 52.233-3 requires contractors to immediately comply with stop-work orders issued after a protest and provides mechanisms for cost recovery and government reimbursement if the protest is sustained due to contractor fault.
Overview
FAR 52.233-3, Protest after Award, outlines the procedures and obligations for both contractors and contracting officers when a protest is filed after contract award. The clause allows the contracting officer to issue a stop-work order if a protest is received or anticipated, requiring the contractor to halt work and minimize costs. Depending on the outcome of the protest, the stop-work order may be canceled (with work resuming and possible equitable adjustments) or the work may be terminated under the contract’s termination clauses. The clause also addresses cost recovery for contractors in the event of termination and holds contractors financially responsible if a protest is sustained due to their misrepresentation or misstatement. Alternate I modifies the adjustment language for cost-reimbursement contracts.
Key Rules
- Stop-Work Order Upon Protest
- Contracting officers may issue a stop-work order if a protest is filed or likely, and contractors must immediately comply and minimize costs.
- Resumption and Adjustment
- If the stop-work order is canceled, contractors resume work and may request equitable adjustment to schedule or price if costs or time increased.
- Termination Procedures
- If work is terminated, reasonable costs from the stop-work order are considered in the settlement, whether for convenience or default.
- Contractor Liability for Protest Costs
- Contractors may be required to reimburse the government for protest costs if the protest is sustained due to their misrepresentation.
Responsibilities
- Contracting Officers: Issue and manage stop-work orders, determine protest outcomes, process equitable adjustments, and enforce contractor liability for protest costs.
- Contractors: Immediately comply with stop-work orders, minimize costs, assert rights to adjustments within 30 days, and reimburse protest costs if at fault.
- Agencies: Oversee protest procedures and ensure compliance with FAR requirements.
Practical Implications
- This clause ensures orderly handling of protests after award, protecting government interests and providing a process for contractors to recover costs. Contractors must be vigilant in responding to stop-work orders and documenting costs. Failure to comply or misrepresent facts can result in financial penalties and offsets against future payments.