Nevada governments award major contracts worth potentially billions of dollars. Successful and unsuccessful bidders should know their options under Nevada law, as a contract award is often just the beginning. Bidders should know how to (1) defend a successful government bid and (2) protest an unsuccessful bid. Both are important.

Background on Nevada Government Contracts

State and local governments regularly award contracts to businesses. These contracts span from the ordinary and mundane, like office supplies, to contracts running entire government programs. For major contracts, Nevada governments must follow stringent legal requirements, and they must often request proposals to fulfill these contracts. These contracts can get quite large, and in some cases, may be worth billions of dollars. Given these stakes, Nevada governments must follow state and local purchasing rules. These rules ensure, in a perfect world, that the most qualified contractor wins this government work. These procedures also help limit graft in the purchasing process. Nevada law fixes both state purchasing rules, in NRS 333, and local government purchasing rules, in NRS 332.

Governments sometimes fall short when awarding contracts. When they do, Nevada law allows businesses who do not win, i.e., disappointed, or unsuccessful bidders, to “protest” a recommended contract award. An unsuccessful bidder must generally follow certain requirements, including deadlines and bonds.

Generally speaking, the grounds to protest are limited and focused on purchasing procedures. This process may be a multi-step process, depending on how far an unsuccessful bidder wants to push a protest. Proceedings would take place administratively, and possibly in court. Throughout this process, the successful bidder may ordinarily participate, too.

Considerations for Nevada Government Contractors

With major contracts, businesses should have a plan to either (1) protest an award or (2) defend a successful award. Going into any bid process, businesses should think about these matters and consider contacting specialized counsel, as there are detailed procedural requirements in both NRS 333 and NRS 233B to consider.