Cargo Transport Systems Company v. United States
16-1481
| Fed. Cl. | Nov 16, 2017Background
- Cargo Transport Systems Co. filed a bid protest challenging an award under a procurement after an initial negative responsibility determination prevented it from receiving the contract.
- The Court dismissed the protest as rested on a waived ground (reliance on a waived challenge to the responsibility determination) and Cargo moved for reconsideration under RCFC 59.
- While reconsideration was pending, the challenged contract was terminated for the government’s convenience and replaced by a bridge contract covering the same work.
- Cargo was awarded that bridge contract (with options through March 8, 2018), so the disputed procurement was effectively displaced.
- The government informed the Court of the termination; Cargo’s motion for reconsideration largely reargued previously rejected points.
- The Court denied the motion for reconsideration as moot because the procurement was cancelled and Cargo received the bridge contract.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the protest remains live after the procurement was cancelled and replaced by a bridge contract | Cargo sought reconsideration and maintained its challenge to the award process | Government noted the procurement was terminated and replaced by a bridge contract awarded to Cargo | Protest is moot because the procurement was cancelled and Cargo received the bridge contract |
| Whether Cargo preserved its challenge to the responsibility determination | Cargo attempted to relitigate the responsibility issue on reconsideration | Government and Court treated the responsibility challenge as waived in the earlier dismissal | Court found the original dismissal proper; reconsideration merely reargued rejected points and was improper under RCFC 59 |
| Whether Cargo suffered cognizable injury warranting relief (standing / relief viability) | Cargo implied injury from not getting the original award | Government pointed out Cargo received substitute performance via the bridge contract | No viable relief: procurement replaced and bridge contract precludes remedy on the protested procurement |
Key Cases Cited
- Blue & Gold Fleet, L.P. v. United States, 492 F.3d 1308 (Fed. Cir. 2007) (waiver doctrine in bid protests)
- Coastal Envtl. Grp., Inc. v. United States, 114 Fed. Cl. 124 (Fed. Cl. 2013) (cancellation of a procurement renders a protest moot)
- Kellogg Brown & Root Servs., Inc. v. United States, 117 Fed. Cl. 764 (Fed. Cl. 2014) (limitations on standing for contractors offered sole-source contracts)
- Tech. Innovation, Inc. v. United States, 93 Fed. Cl. 276 (Fed. Cl. 2010) (bid preparation costs do not necessarily render a protest viable when substitute contracts are awarded)
- Del. Valley Floral Grp., Inc. v. Shaw Rose Nets, LLC, 597 F.3d 1374 (Fed. Cir. 2010) (standards limiting motions for reconsideration)
