If a rejected bidder believes that a bid was unfairly rejected, the company may protest the award in a number of forums. Breach of contract. After an agency has entered into a contract with a private business, the agency may not breach the contract. A contract is breached by a party once the party fails to fulfill its promises under the contract. If an agency breaches the contract, it must pay damages to the contractor.
Damages are a measure of the non-breaching party's loss as a result of the breach.
When an administrative agency breaches a contract, the contractor or subcontractor may sue the government. Small businesses that win in court may be reimbursed for their attorney's fees and expenses associated with the litigation. If the party prevails, it may then file a claim with the court for the recovery of attorney's fees and expenses. It is not always easy to recover contractual losses from the government. The government may be relieved of liability to a non-breaching contractor in certain situations.