U.S. federal agencies face scrutiny over procurement and emergency contracts

Federal procurement processes are facing scrutiny regarding transparency and the use of emergency exceptions. In a recent case involving the U.S. Air Force, the Government Accountability Office (GAO) sustained a protest by ATP Gov, LLC. The dispute arose after the Air Force provided written clarification that satellite terminal assemblies had to be certified at the time of proposal submission. Despite this, the Air Force awarded a contract to a less expensive offeror whose equipment was not certified at the time of submission. The GAO ruled that the Air Force's response amended the solicitation, making the winning offeror ineligible.

Separately, the Department of Homeland Security (DHS) has seen a significant increase in the use of the “unusual and compelling urgency” exception to bypass competitive bidding. While this exception accounted for less than 1% of DHS contract spending in 2024, it covered nearly two-thirds of spending through August of this year. Data indicates that DHS accounted for 92% of the $18.4 billion in federal obligations made under this emergency exception during the first half of fiscal 2026. Some of these contracts were awarded to companies with little to no federal contracting history, including a $915 million deal awarded to Salus Worldwide Solutions for a “self-deportation” effort.