
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 31USC3554]

 
                       TITLE 31--MONEY AND FINANCE
 
                   SUBTITLE III--FINANCIAL MANAGEMENT
 
                  CHAPTER 35--ACCOUNTING AND COLLECTION
 
                SUBCHAPTER V--PROCUREMENT PROTEST SYSTEM
 
Sec. 3554. Decisions on protests

    (a)(1) To the maximum extent practicable, the Comptroller General 
shall provide for the inexpensive and expeditious resolution of protests 
under this subchapter. Except as provided under paragraph (2) of this 
subsection, the Comptroller General shall issue a final decision 
concerning a protest within 100 days after the date the protest is 
submitted to the Comptroller General.
    (2) The Comptroller General shall, by regulation prescribed pursuant 
to section 3555 of this title, establish an express option for deciding 
those protests which the Comptroller General determines suitable for 
resolution within 65 days after the date the protest is submitted.
    (3) An amendment to a protest that adds a new ground of protest, if 
timely made, should be resolved, to the maximum extent practicable, 
within the time limit established under paragraph (1) of this subsection 
for final decision of the initial protest. If an amended protest cannot 
be resolved within such time limit, the Comptroller General may resolve 
the amended protest through the express option under paragraph (2) of 
this subsection.
    (4) The Comptroller General may dismiss a protest that the 
Comptroller General determines is frivolous or which, on its face, does 
not state a valid basis for protest.
    (b)(1) With respect to a solicitation for a contract, or a proposed 
award or the award of a contract, protested under this subchapter, the 
Comptroller General may determine whether the solicitation, proposed 
award, or award complies with statute and regulation. If the Comptroller 
General determines that the solicitation, proposed award, or award does 
not comply with a statute or regulation, the Comptroller General shall 
recommend that the Federal agency--
        (A) refrain from exercising any of its options under the 
    contract;
        (B) recompete the contract immediately;
        (C) issue a new solicitation;
        (D) terminate the contract;
        (E) award a contract consistent with the requirements of such 
    statute and regulation;
        (F) implement any combination of recommendations under clauses 
    (A), (B), (C), (D), and (E); or
        (G) implement such other recommendations as the Comptroller 
    General determines to be necessary in order to promote compliance 
    with procurement statutes and regulations.

    (2) If the head of the procuring activity responsible for a contract 
makes a finding under section 3553(d)(3)(C)(i)(I) of this title, the 
Comptroller General shall make recommendations under this subsection 
without regard to any cost or disruption from terminating, recompeting, 
or reawarding the contract.
    (3) If the Federal agency fails to implement fully the 
recommendations of the Comptroller General under this subsection with 
respect to a solicitation for a contract or an award or proposed award 
of a contract within 60 days after receiving the recommendations, the 
head of the procuring activity responsible for that contract shall 
report such failure to the Comptroller General not later than 5 days 
after the end of such 60-day period.
    (c)(1) If the Comptroller General determines that a solicitation for 
a contract or a proposed award or the award of a contract does not 
comply with a statute or regulation, the Comptroller General may 
recommend that the Federal agency conducting the procurement pay to an 
appropriate interested party the costs of--
        (A) filing and pursuing the protest, including reasonable 
    attorneys' fees and consultant and expert witness fees; and
        (B) bid and proposal preparation.

    (2) No party (other than a small business concern (within the 
meaning of section 3(a) of the Small Business Act)) may be paid, 
pursuant to a recommendation made under the authority of paragraph (1)--
        (A) costs for consultant and expert witness fees that exceed the 
    highest rate of compensation for expert witnesses paid by the 
    Federal Government; or
        (B) costs for attorneys' fees that exceed $150 per hour unless 
    the agency determines, based on the recommendation of the 
    Comptroller General on a case by case basis, that an increase in the 
    cost of living or a special factor, such as the limited availability 
    of qualified attorneys for the proceedings involved, justifies a 
    higher fee.

    (3) If the Comptroller General recommends under paragraph (1) that a 
Federal agency pay costs to an interested party, the Federal agency 
shall--
        (A) pay the costs promptly; or
        (B) if the Federal agency does not make such payment, promptly 
    report to the Comptroller General the reasons for the failure to 
    follow the Comptroller General's recommendation.

    (4) If the Comptroller General recommends under paragraph (1) that a 
Federal agency pay costs to an interested party, the Federal agency and 
the interested party shall attempt to reach an agreement on the amount 
of the costs to be paid. If the Federal agency and the interested party 
are unable to agree on the amount to be paid, the Comptroller General 
may, upon the request of the interested party, recommend to the Federal 
agency the amount of the costs that the Federal agency should pay.
    (d) Each decision of the Comptroller General under this subchapter 
shall be signed by the Comptroller General or a designee for that 
purpose. A copy of the decision shall be made available to the 
interested parties, the head of the procuring activity responsible for 
the solicitation, proposed award, or award of the contract, and the 
senior procurement executive of the Federal agency involved.
    (e)(1) The Comptroller General shall report promptly to the 
Committee on Governmental Affairs and the Committee on Appropriations of 
the Senate and to the Committee on Government Reform and Oversight and 
the Committee on Appropriations of the House of Representatives any case 
in which a Federal agency fails to implement fully a recommendation of 
the Comptroller General under subsection (b) or (c). The report shall 
include--
        (A) a comprehensive review of the pertinent procurement, 
    including the circumstances of the failure of the Federal agency to 
    implement a recommendation of the Comptroller General; and
        (B) a recommendation regarding whether, in order to correct an 
    inequity or to preserve the integrity of the procurement process, 
    the Congress should consider--
            (i) private relief legislation;
            (ii) legislative rescission or cancellation of funds;
            (iii) further investigation by Congress; or
            (iv) other action.

    (2) Not later than January 31 of each year, the Comptroller General 
shall transmit to the Congress a report containing a summary of each 
instance in which a Federal agency did not fully implement a 
recommendation of the Comptroller General under subsection (b) or (c) 
during the preceding year. The report shall also describe each instance 
in which a final decision in a protest was not rendered within 100 days 
after the date the protest is submitted to the Comptroller General.

(Added Pub. L. 98-369, div. B, title VII, Sec. 2741(a), July 18, 1984, 
98 Stat. 1201; amended Pub. L. 100-463, title VIII, Sec. 8139, Oct. 1, 
1988, 102 Stat. 2270-47; Pub. L. 103-355, title I, Sec. 1403(a)-(b)(3), 
Oct. 13, 1994, 108 Stat. 3289, 3290; Pub. L. 104-106, div. D, title 
XLIII, Sec. 4321(d)(3), div. E, title LV, Sec. 5501(2), Feb. 10, 1996, 
110 Stat. 674, 698.)

                       References in Text

    Section 3(a) of the Small Business Act, referred to in subsec. 
(c)(2), is classified to section 632(a) of Title 15, Commerce and Trade.


                               Amendments

    1996--Subsec. (a)(1). Pub. L. 104-106, Sec. 5501(2)(A), substituted 
``100 days'' for ``125 days''.
    Subsec. (b)(2). Pub. L. 104-106, Sec. 4321(d)(3), substituted 
``section 3553(d)(3)(C)(i)(I)'' for ``section 3553(d)(2)(A)(i)''.
    Subsec. (e)(1). Pub. L. 104-106, Sec. 5501(2)(B)(i), substituted 
``Government Reform and Oversight'' for ``Government Operations''.
    Subsec. (e)(2). Pub. L. 104-106, Sec. 5501(2)(B)(ii), substituted 
``100 days'' for ``125 days''.
    1994--Subsec. (a)(1). Pub. L. 103-355, Sec. 1403(a)(1), substituted 
``125 days after'' for ``90 working days from''.
    Subsec. (a)(2). Pub. L. 103-355, Sec. 1403(a)(2), substituted ``65 
days after'' for ``45 calendar days from''.
    Subsec. (a)(3), (4). Pub. L. 103-355, Sec. 1403(a)(3), (4), added 
par. (3) and redesignated former par. (3) as (4).
    Subsec. (b)(3). Pub. L. 103-355, Sec. 1403(b)(1), added par. (3).
    Subsec. (c). Pub. L. 103-355, Sec. 1403(b)(2), amended subsec. (c) 
generally. Prior to amendment, subsec. (c) read as follows:
    ``(c)(1) If the Comptroller General determines that a solicitation 
for a contract or a proposed award or the award of a contract does not 
comply with a statute or regulation, the Comptroller General may declare 
an appropriate interested party to be entitled to the costs of--
        ``(A) filing and pursuing the protest, including reasonable 
    attorneys' fees; and
        ``(B) bid and proposal preparation.
    ``(2) Monetary awards to which a party is declared to be entitled 
under paragraph (1) of this subsection shall be paid promptly by the 
Federal agency concerned out of funds available to or for the use of the 
Federal agency for the procurement of property and services.''
    Subsec. (e). Pub. L. 103-355, Sec. 1403(b)(3), amended subsec. (e) 
generally. Prior to amendment, subsec. (e) read as follows:
    ``(e)(1) The head of the procuring activity responsible for the 
solicitation, proposed award, or award of the contract shall report to 
the Comptroller General, if the Federal agency has not fully implemented 
those recommendations within 60 days of receipt of the Comptroller 
General's recommendations under subsection (b) of this section.
    ``(2) Not later than January 31 of each year, the Comptroller 
General shall transmit to Congress a report describing each instance in 
which a Federal agency did not fully implement the Comptroller General's 
recommendations during the preceding fiscal year.''
    1988--Subsec. (a)(1). Pub. L. 100-463 struck out ``unless the 
Comptroller General determines and states in writing the reasons that 
the specific circumstances of the protest require a longer period'' 
after ``submitted to the Comptroller General'' before period at end.

                         Change of Name

    Committee on Government Reform and Oversight of House of 
Representatives changed to Committee on Government Reform of House of 
Representatives by House Resolution No. 5, One Hundred Sixth Congress, 
Jan. 6, 1999.


                    Effective Date of 1996 Amendment

    For effective date and applicability of amendment by section 
4321(d)(3) of Pub. L. 104-106, see section 4401 of Pub. L. 104-106, set 
out as a note under section 251 of Title 41, Public Contracts.
    Amendment by section 5501(2) of Pub. L. 104-106 effective 180 days 
after Feb. 10, 1996, see section 5701 of Pub. L. 104-106, set out as an 
Effective Date note under section 1401 of Title 40, Public Buildings, 
Property, and Works.


                    Effective Date of 1994 Amendment

    For effective date and applicability of amendment by Pub. L. 103-
355, see section 10001 of Pub. L. 103-355, set out as a note under 
section 251 of Title 41, Public Contracts.


                             Effective Date

    Section applicable with respect to any protest filed after Jan. 14, 
1985, see section 2751(b) of Pub. L. 98-369, set out as a note under 
section 251 of Title 41, Public Contracts.


                 Prompt Payment of Costs Under Prior Law

    Section 1403(b)(4) of Pub. L. 103-355 provided that: ``Costs to 
which the Comptroller General declared an interested party to be 
entitled under section 3554 of title 31, United States Code, as in 
effect immediately before the enactment of this Act [Oct. 13, 1994], 
shall, if not paid or otherwise satisfied by the Federal agency 
concerned before the date of the enactment of this Act, be paid 
promptly.''

                  Section Referred to in Other Sections

    This section is referred to in sections 3553, 3555, 3556 of this 
title; title 10 section 2305; title 22 section 3862; title 41 section 
253b.
