Bradley has been publishing an ongoing survey of state-level bid protest processes and procedures. For the next state in this series, we focus on the bid protest procedures in Arizona.
Link to Who Can File a Protest? Who Can File a Protest?
Any interested party may file a protest challenging:
- A solicitation,
- A determination that a bid or proposal is not susceptible to award, or
- The award of a contract.
Link to How to File a Protest How to File a Protest
A protest must be filed in writing with the contracting agency’s chief procurement officer (CPO) and copied to the state procurement administrator. The protest must include:
- Contact details of the protester;
- Signature of the protester or representative;
- Identification of the purchasing agency and solicitation/contract number;
- A detailed legal and factual basis for the protest (with supporting documents); and
- The specific relief requested.
Generally, most state procurements are governed by the Arizona Administrative Procedures Act, along with administrative rules and regulations set forth in the Arizona Administrative Code. However, there are several state agencies that are exempt from the general state procurement code and are governed by their own rules and regulations. Moreover, local government procurements and quasi-governmental agencies are controlled by another patchwork of codes and ordinances. It is important to identify the exact set of laws, regulations, and procurement policies by which your specific procurement is governed.
Link to Timeliness Is Key Timeliness Is Key
- If the issue is apparent in the solicitation, the protest must be filed before the offer due date and time.
- For all other issues, generally, the protest must be filed within 10 days after the procurement file becomes publicly available.
- Extensions may be requested prior to the deadline if the protester shows good cause — typically tied to agency action or inaction — but protesters should not count on receiving an extension.
- While most agencies use the 10-day deadline, it is important to note that bid protests involving certain state agencies, such as the Arizona Department of Transportation, and certain municipalities have different filing deadlines, some as short as three days.
Link to Procurement Stays Pending Resolution Procurement Stays Pending Resolution
Upon filing a protest:
- The agency CPO must determine whether to proceed with or stay the procurement.
- A stay is appropriate if the protest is likely to succeed or a stay is in the best interest of the state.
- If denied, the protester may seek a stay from the state procurement administrator within 10 days.
Link to Resolution by the Chief Procurement Officer Resolution by the Chief Procurement Officer
The CPO has authority to resolve the protest and must issue a written decision within 14 days of the protest filing. This decision will:
- Explain the basis for the ruling,
- Be sent via a method that confirms receipt, and
- Inform the protester of their right to appeal within 30 days to the director.
An extension for the CPO’s decision may be granted by the director, not to exceed an additional 30 days.
Link to Remedies Available if Protest Is Sustained Remedies Available if Protest Is Sustained
If the CPO upholds a protest, the remedy will consider:
- The severity of the procurement issue,
- Prejudice to other offerors,
- Contract performance progress,
- State costs and urgency, and more.
Remedies may include:
- Terminating or amending the contract,
- Reissuing or amending the solicitation,
- Declining to exercise renewal options, and/or
- Any other action needed to restore procurement integrity.
Link to Appealing the CPO’s Decision Appealing the CPO’s Decision
An interested party may appeal to the director of the Department of Administration within 30 days of receiving the CPO’s decision. Appeals must include:
- The same information required in the original protest,
- A copy of the CPO’s decision, and
- A statement of the factual or legal error being challenged.
Late appeals may still be considered if good cause is shown.
Link to Director Review and Further Process Director Review and Further Process
- The CPO must file a full report with the director within 21 days of the appeal, including the procurement file and findings.
- The protesting party may submit written comments within 10 days of receiving this report, with possible extensions available upon request.
- If the director sustains the appeal, appropriate remedies under existing procurement rules will be implemented.
Link to Informal Settlement Conference Informal Settlement Conference
Before issuing a final decision, the director may call for an informal settlement conference. Participation is voluntary but encouraged. Any agreement reached becomes the final decision of the proceeding.
Link to Dismissal of an Appeal Dismissal of an Appeal
The director may dismiss an appeal without a hearing if:
- The appeal lacks a valid basis,
- It is untimely, or
- It raises new issues not presented in the protest.
Link to Final Adjudication Final Adjudication
If not dismissed or settled, the director will resolve the appeal as a contested case with a state-assigned administrative law judge, ensuring due process protections and a formal adjudication of the procurement dispute.
Link to Conclusion Conclusion
The Arizona procurement protest and appeal process is designed to uphold fairness and accountability in public contracting. Interested parties should be diligent about timelines, documentation, and compliance with procedural requirements to protect their interests effectively.
If you have any questions about the bid protest process in Arizona, or need assistance with pursuing a protest in Arizona, please do not hesitate to contact Aron Beezley or Nathaniel Greeson.