18-846
Fed. Cl.Jun 22, 2018Background
- SVD Stars II, LLC (SVD), incumbent under a GSA Stars II GWAC task order at Fort Belvoir, learned the Army awarded a new longer-term task order (May 25 award) to 22nd Century; SVD protested that award at GAO, triggering a CICA automatic stay.
- The contracting officer issued a stop-work on the May 25 award upon notice of the GAO protest.
- While the stay was in effect, the Army issued a separate short-term, direct “bridge” task order (June 12 task order) to 22nd Century to maintain IT/IM services during the protest.
- SVD sued in the Court of Federal Claims, alleging the June 12 bridge award was a de facto override of the CICA stay and that the Army failed to follow statutory override procedures (no findings or notice to GAO/SVD).
- SVD moved for emergency declaratory relief, a TRO, and a preliminary injunction to enjoin performance of the June 12 task order; the government opposed.
- The court denied emergency relief and a preliminary injunction, finding SVD unlikely to succeed on the merits and that other equitable factors did not favor relief.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether awarding a short-term bridge task order during a GAO protest constitutes a de facto override of the CICA automatic stay | The June 12 bridge order provides the same services as the protested May 25 order and therefore functions as an override; Army failed to make required override findings or provide notice | A bridge contract is a separate, self-contained contract that preserves the protested contract’s status quo and is not the functional equivalent of a stay override | The bridge award was not a de facto override; SVD is unlikely to succeed on the merits |
| Whether SVD would suffer irreparable harm absent injunctive relief | Loss of skilled staff and competitive advantage from 22nd Century’s bridge performance would cause irreparable injury | Loss of personnel is not typically irreparable; incumbency advantage is speculative and both firms met GSA baseline qualifications | No irreparable harm shown |
| Whether the balance of hardships and public interest favor injunctive relief | Injunctive relief needed to protect SVD’s business interests and preserve competitive integrity | Injunction would increase government costs, risk duplicative payments, and is unwarranted given weak likelihood of success | Balance of hardships and public interest do not favor an injunction |
Key Cases Cited
- Carahsoft Tech. Corp. v. United States, 86 Fed. Cl. 325 (bridge contracts do not ordinarily amount to stay overrides)
- Access Sys., Inc. v. United States, 84 Fed. Cl. 241 (bridge contract covering identical services held separate and not an override)
- PGBA, LLC v. United States, 60 Fed. Cl. 196 (jurisdiction to review agency stay-override decisions)
- Jones Automation, Inc. v. United States, 92 Fed. Cl. 368 (TRO is extraordinary relief; standards summarized)
- Mazurek v. Armstrong, 520 U.S. 968 (standard for TRO)
- Am. Signature, Inc. v. United States, 598 F.3d 816 (preliminary injunction factors)
- Winter v. Natural Resources Defense Council, Inc., 555 U.S. 7 (preliminary injunction standard)
