What remedies are available when a bid protest is sustained?

A bid protest is a legal action that is designed for use in a situation where a party is dissatisfied with the way a government contract is awarded, handled, or otherwise organized. Usually a bid protest occurs when a government contract is awarded to a business or provider and someone else– either a government official or another provider– protests the way the decision was made. The bid process for government projects must comply with certain requirements, including transparency and objectivity, in order to ensure that public funds are spent wisely. When the government chooses a company or entity to do a job or manage a project, various requirements must be met. If those requirements aren’t met, a bid protest can arise.

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Contracts with State and Local Governments

Entering into a contract with a government entity is very different from entering into a contract with a private entity. When a contract is entered into with the state, state and local governments are not subject to the same laws that apply to federal contracts. However, many states have adopted similar laws modeled after federal regulations, while also setting their own requirements to ensure that contracting is fair.

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Differences Between Federal Government Contracts and Contracts Between Commercial/Business Firms

When two commercial firms enter into a contractual relationship, their contract is governed by the Uniform Commercial Code (if applicable) as well as by relevant state common laws that apply to contracts. As long as a contract does not violate public policy and is in accordance with these and other laws (i.e., protecting shareholder interests in public companies), private parties are permitted to make any contractual arrangements they wish. When the federal government enters into a contract, however, there are very different rules that apply and there are a variety of regulatory requirements and statutes that exist that set parameters on the contractual relationship. When two private entities create a contract, they are spending their own money or, in some cases, the money of shareholders. When two private entities create a contract, they are spending their own money or, in some cases, the money of shareholders.

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What is a ‘termination for default’?

When a business owner enters into a procurement contract with the federal government for the provision of goods or services, he or she must be aware of the complex terms of such contracts. While many business owners are familiar with the Uniform Commercial Code and common law rules governing their business contracts, most are not familiar with the unique administrative rules governing federal government contracts.

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When does the federal government use a federal grant or a cooperative agreement?

When the federal government of the United States wants to buy goods or services from the private sector, it uses a procurement contract. In a similar fashion, when the federal government wants to support the activity of a non-profit organization or a lower level of government (state, county or municipality), it can do so by awarding a grant or entering into a cooperative agreement.

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