Delegated Procurement and the Protest Process

Robert C. Marshall, Michael J. Meurer, Jean-Francois Richard
Duke University

Aug 31 1989

The Competition in Contracting Act of 1984 has given excluded and/or losing bidder in certain federal procurements the right to protest the actions of procurement officials before a quasi-judicial board. In this paper it is shown that the protest process can obviate agency problem and, consequently, result in higher expected surplus for the government. In addition, we show that our procurement mechanism is rich enough to capture the salient feature of procurement both before and after the 1984 legislation.


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