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ARTICLE · 22 APRIL 2024

Bid Protest Minute: GAO Clarifies Certain "De Facto" Joint Venture Eligibility Issues

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On March 22, the Government Accountability Office (GAO) sustained a protest challenging an agency decision finding the protester ineligible for award under both the Omnibus...

United StatesGovernment, Public Sector
Todd Overman
Todd Overman

On March 22, the Government Accountability Office (GAO) sustained a protest challenging an agency decision finding the protester ineligible for award under both the Omnibus Diplomatic Security and Antiterrorism Act of 1986 (Security Act) and the solicitation's System for Award Management (SAM) registration requirements. GAO disagreed with the Department of State's (or Agency) arguments, holding that Pernix Federal LLC's (Pernix) submissions complied with all requirements of the prequalification process and the solicitation.

The decision clarifies that stand-alone entities that prequalify as de facto joint ventures are eligible for award. In addition, unless the Agency can show otherwise, it is impossible for de facto joint ventures to register in SAM.gov, and therefore, a requirement premised on SAM.gov registration is unreasonable.

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