GF Blue logo
MenuMENU
SearchSEARCH

Court Decision Restricts Procurement Options for Federal Agencies

RICHMOND, VA - A U.S. Court of Federal Claims decision places a check on the federal government’s ability to use a private party for procurement decisions, according to the law firm LeClairRyan.

May 21, 2012
3 min to read


RICHMOND, VA – A recent precedent-setting U.S. Court of Federal Claims decision will result in more opportunities for contractors to bid on federal government procurement projects, according to a release from the law firm LeClairRyan. Thomas Coulter, who heads the firm’s Government Contracts practice area team, represented two software companies that claimed they were unfairly denied the right to compete for a large project under federal procurement laws.

“The May 2 decision by the U.S. Court of Federal Claims broke new ground in two areas,” Coulter reported. “This is the first time that the right of contractors to challenge the federal government’s pre-procurement decisions has been recognized in a situation where the government didn’t issue a procurement vehicle. Equally important, it places a check on the government’s ability to use a private party for procurement decisions in an attempt to eliminate the protection of procurement laws and protest rights.”

Ad Loading...

The controversy began when the plaintiffs in the suit, two computer software firms, submitted bids in 2005 in connection with a Joint Acquisition and Assistance  Management System (JAAMS) program that was being developed by the United States Agency for International Development and the Department of State. The 2005 business opportunity was said to be worth about $10 million, according to court filings.

Traditionally, the federal agencies would assess contractor proposals and make a so-called direct decision about awarding the procurement contract to one or more firms, Coulter said.

“But in a stunning reversal of policy, the agencies decided to forego the direct procurement process and instead handed off the management of the procurement process to SRA International Inc., a technology and consulting company in Fairfax that also provided software contracting services for federal agencies,” Coulter said. “SRA recommended itself as the sole provider for the JAAMS software, and when the plaintiffs protested, the federal agencies claimed that the firms had no bid protest rights since a third-party, non-governmental agency had handled the procurement process. The court agreed with the core of our argument, which was that the federal agencies were remiss in changing from a direct, federal procurement to one conducted by a private party, without providing any reason for doing so.” 

The underlying project was completed long before the courts resolved the issue, but the plaintiffs were awarded the right to recover their proposal preparation costs, according to Coulter.

“Since the Federal Circuit’s ruling in this case establishing jurisdiction for pre-procurement challenges, more than 20 other contractors have filed similar pre-procurement decision appeals,” Coulter said in the release. “My clients were concerned that the government’s use of a third party for procurement would become a common practice and that they and other contractors would miss out on more opportunities issued under the protection of the federal procurement laws and regulations.”

More Operations

A cheat sheet thumbnail with images of a checklist.
Operations•October 16, 2026

Is Keeping Older Fleet Vehicles Really Saving Money?

Is keeping vehicles longer saving money, and what happens when a diagnostic test points to the wrong fix?

Read More →
A graphic with vehicles and fleet managers.
Operations•October 16, 2026

How Smart Fleet Strategy Can Help Local Government Agencies Do More with Less

Keeping a vehicle longer may ease this year’s budget, but what does it cost the next one? A closer look at fleet decisions can reveal opportunities to reduce spending while protecting essential services.

Read More →
linkedin logo on a computer driving people towards LinkedIn for Government Fleet
Operations•by Staff Writer•October 16, 2026

Connect with Government Fleet on LinkedIn

From industry news and fleet management strategies to conversations with peers, Government Fleet's LinkedIn page offers public-sector fleet professionals another way to stay informed and connected.

Read More →
Ad Loading...
RTA graphic announcing winner.
Operations•by News/Media Release•October 15, 2026

Town of Queen Creek Named Most Successful Fleet Award Winner of Inaugural RTA Fleet Success Awards

Five fleets were honored at RTA Connect 2026 in Chicago for excellence across resource efficiency, intentional culture, risk management, and stakeholder satisfaction.

Read More →
Chevin whitepaper cover A buyer's guide to fleet management software
Sponsored•October 14, 2026

A buyer's guide to fleet management software in 2027

Buying fleet management software in 2027 means looking beyond features and price. As fleet operations, technology and expectations evolve, this guide explores what today’s fleet professionals should consider when choosing a system that can deliver value now and adapt to what comes next.

Read More →
A youtube cheat sheet graphic.
Operations•October 11, 2026

Hazard Alerts, Fleet Car Sales Rise and a New Shuttle Concept

Fleet car sales doubled, but the bigger picture tells a different story in this week’s roundup.

Read More →
Ad Loading...
an image with let the data drive text overlay
Operations•by Jeanny Abraham•October 9, 2026

How St. Johns County Turned Fleet Data Into Better Replacement Decisions

St. Johns County, Florida, had fleet data, but turning it into reliable decision guidance was another matter. Instead of starting over with a new fleet management system, the county connected existing tools and built a scoring system that gives managers an objective look at fleet health.

Read More →
A graphic of passes for Fleet Forward.
Operations•by Staff Writer•October 6, 2026

Fleet Forward Conference Introduces One-Day Passes for 2026 

New one-day registration lets fleet professionals attend Tuesday, Wednesday, or Thursday, with passes available for $249.

Read More →
Two buses with a logo above them.
Operations•by News/Media Release•October 5, 2026

ENC Unveils its ZAVIR Medium-Duty Shuttle

Two variants of the concept shuttles were revealed: a low-floor configuration and a high-floor configuration.

Read More →
Ad Loading...
A graphic of an auto shop and cheat sheet text.
Operations•October 2, 2026

Could Your Next Fleet Technician Start as an Intern?

What if your next technician hasn’t worked in a fleet shop yet? What fleets are doing to free up time.

Read More →