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BROADREACH HEALTHCARE PTY LTD v. United States
1:24-cv-01719
Fed. Cl.
Jul 8, 2025
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Background

  • USAID issued a funding opportunity in early 2024 to support HIV and TB epidemic control in South Africa's Mpumalanga province, structured as a $190 million, five-year cooperative agreement.
  • BroadReach, a for-profit healthcare enterprise, submitted a proposal but received no response and later protested USAID's use of a cooperative agreement instead of a procurement contract.
  • BroadReach's protest was dismissed by the GAO for timeliness and lack of a significant issue.
  • During the federal court litigation, USAID cancelled the funding opportunity due to a policy change and a pause in foreign aid by the new presidential administration.
  • The government moved to dismiss BroadReach’s lawsuit as moot, arguing there was no longer a live controversy since the funding opportunity was cancelled and could not be reinstated.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether USAID's use of a cooperative agreement (instead of a procurement contract) violated statutory requirements (FGCAA) USAID unlawfully used a cooperative agreement to procure services that should require a contract Use of a cooperative agreement was authorized; it fulfills a public assistance purpose Not addressed on the merits due to mootness
Whether the court retains jurisdiction after cancellation of the funding opportunity Mootness does not apply; the government should not avoid review and costs Cancellation moots the case; no longer a live controversy Court lacks jurisdiction; case dismissed as moot
Application of the voluntary cessation exception to mootness Cancellation was tactical and does not preclude recurrence of alleged conduct Cancellation was policy-driven, agency-wide, and final Exception does not apply; no reasonable expectation of recurrence
Entitlement to bid or proposal preparation costs and fees Should recover costs/fees even after cancellation No recovery where award/solicitation was cancelled Claims for costs/fees cannot revive a moot case

Key Cases Cited

  • Powell v. McCormack, 395 U.S. 486 (case is moot when there is no longer a live issue or interest in the outcome)
  • Chapman Law Firm Co. v. Greenleaf Construction Co., 490 F.3d 934 (case should be dismissed as moot if relief has been granted or controversy resolved)
  • County of Los Angeles v. Davis, 440 U.S. 625 (voluntary cessation exception to mootness; party must show conduct won't recur; effects eradicated)
  • Lewis v. Continental Bank Corp., 494 U.S. 472 (attorney's fees do not create a controversy where none exists on the merits)
  • Already, LLC v. Nike, Inc., 568 U.S. 85 (voluntary cessation—mootness if no reasonable expectation alleged conduct will recur)
Read the full case

Case Details

Case Name: BROADREACH HEALTHCARE PTY LTD v. United States
Court Name: United States Court of Federal Claims
Date Published: Jul 8, 2025
Docket Number: 1:24-cv-01719
Court Abbreviation: Fed. Cl.