S.Amdt. 3423

SA 3423, submitted by Mr. Mullin, aims to add a new section titled "Enhancing Efficiency and Fairness in Defense Procurement Protests" to bill S. 2296.

The purpose of this amendment is to streamline Department of Defense procurement by reducing frivolous bid protests while still ensuring contractors have fair access to protest mechanisms.

To achieve this, the amendment adds the following:

• Protest Filing Fees: Contractors who file protests determined to be "frivolous" must pay a non-refundable fee of 1 percent of the fixed cost value or minimum guarantee value. These fees are due within 30 days of the protest completion and the frivolous determination.
• Exemptions: The filing fee does not apply to contracts valued under $5,000,000, small business concerns, or contractors who have not filed a protest in the previous 3 years.
• Penalties for Repeat Protesters: Contractors with three or more frivolous protests in a 5-year period may face enhanced oversight (a Department of Defense review of their protest history), mandatory pre-filing reviews, or temporary suspension from bidding on Department of Defense contracts for up to 1 year.
• Accountability and Guidance: The Secretary of Defense must post an annual report online regarding protest filings, outcomes, and fees collected. Additionally, the Comptroller General of the United States must issue guidance defining what constitutes a "frivolous" protest within 180 days of the Act's enactment.