My firm just received an award notice for a federal staffing contract, NAICS 561320. It was a competitive 8(a) set-aside. We were excited to start, but then a competitor filed a protest. The contracting officer mentioned an "automatic stay." I'm trying to understand what this means for our contract performance and our planned start date. Does the stay always stop work immediately? How long does it typically last, and what happens next?
The automatic stay provision in federal contracting means that when the Government Accountability Office (GAO) receives notice of a protest, the contracting officer must suspend performance or terminate an awarded contract. This happens if the protest is filed within 10 days after contract award, or within 5 days after a debriefing date offered for a required debriefing, whichever is later. The automatic stay does not always stop work immediately; the head of the contracting activity can make a written finding that continued performance is in the Government's best interests or that urgent and compelling circumstances significantly affect the interests of the United States (FAR 33.104(c)(1) and (2)).
A GAO protest decision is issued within 100 days after it is filed, or within 65 days if the express option is used (4 CFR 21.9(a) and (b)). If the protest is denied, contract performance can resume. If the protest is sustained, the agency will take corrective action, which could include reevaluating proposals or even recompeting the contract.