Related, But Different: GAO's Warnings About Relying On Affiliates' Qualifications

Two sustained protest decisions released by the U.S. Government Accountability Office (GAO) last week illustrate a risk of relying on affiliated entities to demonstrate qualifications in a proposal for a government contract. Ignoring legal distinctions between related companies is a trap for the unwary that can ruin a proposal's chances for award.

Though the prime offeror need not in every instance hold all necessary qualifications, GAO's decisions 1) reinforce the importance of paying close attention to what the solicitation allows and 2) emphasize that care must be taken to adequately describe the offeror's relationship with any affiliate whose qualifications are relied upon and the affiliate's proposed involvement in performance. As the following cases show, where offerors rely on affiliates' qualifications, clarity is the best policy, and blurred lines create risks.