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Does an Agency’s Hardball Litigation Strategy Justify Reimbursement of Protest Costs?

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The agency took corrective action before the agency report. The protester requested costs, reasoning it had wasted time and effort responding to the agency’s vexatious litigation strategy. GAO denied the request. The agency made unsuccessful arguments, but nothing indicated it had asserted those arguments in bad faith. 

Logic Gate, LLC—Costs, GAO B-421342.5 
  • Protest and Corrective Action – The protester challenged the award of a BPA. The agency took corrective action before the deadline for the agency report. 
  • Request for Costs – GAO will recommend reimbursement of protest costs when an agency unduly delays in taking corrective action. Here, the agency did not delay; it took corrective action before the agency report. But the protester argued it was nonetheless entitled to costs due to the agency’s “weaponized” document production and a vexatious request for dismissal 
  • GAO Denies Request – GAO reasoned an agency is permitted to assert good faith procedural and substantive arguments. The protester may have found the agency’s strategy irritating, but the circumstances did not indicate the agency litigated in bad faith. 

The protester is represented by Gunjan R. Talati of Kilpatrick Townsend & Stockton, LLP, and Daniel J. Strouse of Cordatis, LLP. The agency is represented by Max D. Houtz, Dareen S. Gilkes, William S. Whitman, and James Durkee of the Department of Defense. GAO attorneys Paul N. Wengert and Tania Calhoun participated in the decision. 

--Case summary by Craig Lachance, Senior Editor 

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