# GAO Sustains NIH Bid Protest on Set-Aside

The Government Accountability Office (GAO) sustained a bid protest filed by LJR Solutions, LLC against the National Institutes of Health (NIH) concerning a March 2026 procurement for professional, scientific, and technical services. The GAO found that NIH failed to properly apply the Rule of Two in its small business set-aside determination, citing inadequate market research, inconsistent internal documentation, and failure to consider partial set-aside options. As a result, NIH must reassess its procurement strategy with thorough analysis and proper documentation to comply with small business procurement requirements.

- **Why this matters:** Federal agencies must rigorously document market research and set-aside decisions to withstand GAO scrutiny and ensure compliance with the Rule of Two.
- Procurement officials should review and strengthen internal procedures for small business set-asides, including exploring partial set-aside options.
- Small business contractors and bidders can leverage GAO decisions to challenge improperly set-aside procurements and advocate for fair competition.
- This case highlights the importance of clear, consistent documentation in procurement files to avoid protest sustainment and potential delays in contract awards.

**Jurisdictions:** federal
**Industries:** Healthcare
**Topics:** Regulatory Compliance
**Published:** September 17, 2026

### Government Entities
- National Institutes of Health (NIH)
- Department of Health and Human Services (HHS)
- Government Accountability Office (GAO)

### Vendors
- LJR Solutions, LLC (protester and small business bidder)

### Sources
- [August 2026 Bid Protest Sustain of the Month: Agency’s Rule of Two Set-Aside Determination Failed on Multiple Fronts | Government Contracts Legal Forum](https://www.governmentcontractslegalforum.com/2026/09/articles/bid-protest/august-2026-bid-protest-sustain-of-the-month-agencys-rule-of-two-set-aside-determination-failed-on-multiple-fronts) - Government Contracts Legal Forum