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