Takeaways

Failure to properly handle protected information can lead to disqualification, which in turn strips the contractor of standing and prevents any protest of the award.
Improper handling may also lead to referral to a suspension and debarment official, jeopardizing a contractor’s broader eligibility for future contract awards.
Contractors should implement a documented playbook and employee training to ensure proper handling and prompt reporting of any inadvertent disclosure.

The recent decision by the U.S. Court of Federal Claims (COFC) in Marathon Targets serves as a cautionary tale illustrating the harsh consequences contractors may face when they mishandle protected source selection information. (See Marathon Targets, Inc. v. United States, No. 25-121 (Fed. Cl. Nov. 10, 2025; reissued Nov. 21, 2025).) The post-award protest arose from a nearly $200 million U.S. Marine Corps procurement for Trackless Mobile Infantry Target system support services. After notifying offerors of its decision to make award to MVP Robotics, the contracting officer inadvertently emailed Marathon’s president a file containing protected source selection information from the awardee’s technical evaluation. Rather than immediately reporting the disclosure and quarantining the information, Marathon’s president reviewed the information, circulated it to multiple individuals—including persons outside the company—and retained it for use in Marathon’s subsequent protest filings.

Following an investigation, the Marine Corps determined that Marathon’s conduct created the appearance of impropriety and demonstrated that Marathon was not a responsible contractor under the FAR. The agency concluded that this conduct threatened the integrity of the procurement process and warranted disqualification from the competition. The Marine Corps did not stop there, however. It referred the matter to the U.S. Navy’s Acquisition Integrity Office for potential suspension or debarment—an escalation the Court highlighted as underscoring the seriousness of mishandling protected source selection information.

The Court’s decision serves as a clear warning that, even where the government is the source of a disclosure, contractors must take immediate steps to safeguard, quarantine and report any protected source selection information they receive. Failure to do so can jeopardize not only the procurement at issue but also a contractor’s broader eligibility to compete for future awards. Accordingly, contractors should review their internal controls and ensure that employees are trained on the proper handling and prompt reporting of any inadvertent disclosure of source selection information.

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