Western States Federal Contracting, LLC v. Department of Veterans Affairs, 667 F. App'x 775

Western States contracted with the VA on Sept. 30, 2009 to alter/expand fire alarm and sprinkler systems in Phoenix; project finished 699 days (549 days over estimate).
Western States submitted a delay claim for $760,852.01; the VA failed to issue a final decision, so the claim was deemed denied.
Western States appealed to the Civilian Board of Contract Appeals (Board); the Board twice requested Delaware good‑standing documentation because Western States failed to pay Delaware franchise taxes.
The Board dismissed the appeal (Feb. 11, 2014) for lack of capacity due to not being in good standing; Western States immediately paid taxes and was restored to good standing.
This Court vacated the Board’s initial dismissal and remanded for further proceedings; on remand the Board again dismissed, relying on the fact Western States had not been in good standing at the time of the original dismissal and alternatively under Rule 17(b)(3)(A).
The Federal Circuit held the Board erred: the vacatur annulled the original dismissal and Delaware law permits actions after restoration to good standing, so the Board must consider the merits.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether Board properly dismissed for lack of capacity because Western States was not in Delaware good standing when originally dismissed	Western States: vacatur wiped out the original dismissal and it was restored to good standing on remand, so Board must reach the merits	VA/Board: dismissal remains valid because Western States was not in good standing at time of original dismissal; Board Rule 26(a) prevents relief based on new evidence	Court: Vacatur annulled the original dismissal; restoration under Delaware law permits maintenance of the action; remand for merits
Whether Western States is an “unincorporated association” under Fed. R. Civ. P. 17(b)(3)(A) such that capacity rules differ	Western States: capacity exists under Delaware law once restored; Rule 17 inquiry unnecessary given Delaware capacity	VA/Board: argued alternative theory that Western States lacked capacity as unincorporated association	Court: No need to decide Rule 17 issue because Delaware capacity resolves the case

Reliable Contracting Grp., LLC v. Dep’t of Veterans Affairs, 779 F.3d 1329 (Fed. Cir. 2015) (standard of review for Board legal conclusions and factual findings)
Ala. Power Co. v. EPA, 40 F.3d 450 (D.C. Cir. 1994) (definition and effect of vacatur)