Choose Your Battles Wisely: The Consequences of Protesting Government Procurement Contracts

• 成果类型: Article; Early Access
• 署名作者: Canayaz, Mehmet I.; Cornaggia, Jess; Cornaggia, Kimberly
• 署名单位: Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2021.02055
• 发表日期: 2025
• 关键词: bid protests; CONTRACTING; government contracts

摘要

We examine the relationship between a firm's successful protest of a government agency's conduct or terms of a procurement contract and the amount of business the firm conducts with the government going forward. We find firms receive fewer and less valuable government contracts, face more contract cancellations, and experience significant reductions in sales growth and employee growth. Despite widespread belief, successful bid protesters do not delay government procurement because of lengthy dispute resolutions. Overall, we provide the first analysis of corporate interactions with the United States government bid protest system.