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Reading: Government watchdog backs Air Force decision to limit contract bids to cleared companies – Federal News Network
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Politics

Government watchdog backs Air Force decision to limit contract bids to cleared companies – Federal News Network

Editorial Staff
Last updated: November 3, 2026 11:38 am
Editorial Staff
3 days ago
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A contractor argued that the department’s requirement to hold an active top-secret facility clearance at the time of proposal submission was overly restrictive.
The Department of the Air Force can move ahead with its purchase of advisory and support services after the Government Accountability Office denied a contractor’s protest over security clearance requirements the company said were overly restrictive.
Sawdey Solution Services Inc. first filed a bid protest with GAO in June, arguing that the department’s requirement to hold an active top-secret facility clearance at the time of proposal submission restricted competition.
The Air Force sought advisory and assistance services supporting its critical national security portfolios, such as arms control treaties, countering weapons of mass destruction and the nuclear enterprise. 
The company argued that it could not obtain the required security approvals since the Defense Counterintelligence and Security Agency needs a current operational requirement, which would not exist until after the contract is awarded. The contractor said the requirement limited participation to companies that already hold the required approvals.
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Sawdey said it was close to getting the required security approvals and that it would be able to meet the requirements before beginning work. The company argued that “eligibility to participate in the procurement should be extended to a vendor with the capability to quickly obtain the safeguarding approval post-award.” 
The contractor also argued that “the security clearance requirements at the time of proposal submission falls flat” since its proposed subcontractor already had the required security approvals. 
GAO said it found “no basis to question the reasonableness of the agency’s justification for the solicitation requirements at issue” given the nature of the contract. It also found that Sawdey couldn’t guarantee that it would be able to quickly obtain the necessary approvals. 
“Relaxation of the solicitation requirements would expose the agency to even greater potential risk from other offerors with less potential for quickly obtaining the necessary approvals,” the watchdog said.
The Defense Department is currently working to address the issue many companies have faced in obtaining security clearances — they need a government contract to begin their facility clearance process, but without a clearance, they cannot compete for some classified work.  
The Defense Innovation Unit, for instance, recently launched the Classified Access to Address Critical Technology, or CLASS ACT, program that will allow some companies to begin the facility-clearance process before the government is ready to buy their technology.  
If you would like to contact this reporter about recent changes in the federal government, please email anastasia.obis@federalnewsnetwork.com or reach out on Signal at (301) 830-2747.
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