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Cargo Transport Systems Company v. United States
16-1481
| Fed. Cl. | Nov 16, 2017
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Background

  • 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)
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Case Details

Case Name: Cargo Transport Systems Company v. United States
Court Name: United States Court of Federal Claims
Date Published: Nov 16, 2017
Docket Number: 16-1481
Court Abbreviation: Fed. Cl.