Government Contract Process: Analyzing Causes of Bid Protests and the Reduction Possibilities Through "Smart Contract" Automation

Abstract

This paper reviews protests filed against the U.S. Department of Defense to the Government Accountability Office (GAO) and the Naval Surface Warfare Center Philadelphia Division (NSWCPD) identifying trends in order to evaluate the common causes and negative effects upon procurement. Ultimately, the paper analyzes areas of concern and provides suggestions for improvement. The methodology involves analysis of commonalities in protests, focusing on cost impacts and time delays to the government. The research includes an evaluation of the common factors found in protests won and protests lost. It was found that the areas of concern within protests could be attributed to two major factors: 43 percent were attributed to technical evaluation and 27 percent to contract set-asides. As dictated by the Federal Acquisition Regulation (FAR), the acquisition process relies on the judgment of the Contracting Officer when reviewing protests. The causality of protests, however, relies on more adjudicating parties to make a fair and reasonable determination. This paper reviews literature on recent technological advances in cryptography and computer science, namely blockchain technology. The use of blockchain locked smart contracts is described as the future of government contracting to mitigate or reduce a multitude of popular trends in complaints against the contract bid process.