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.
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.”
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

John Deere Introduces 40 P-Tier Compact Excavator
John Deere is adding a compact excavator designed for crews that need to move equipment between jobsites and handle multiple types of work with one machine. The 40 P-Tier weighs less than 10,000 pounds and offers configurable hydraulics, attachment options, and connected fleet-management capabilities.
Read More →
How Leading Fleets Improve and Why Business Plans Matter
This week, we look at what past Leading Fleet winners can teach us about making progress, plus how to build a business plan your fleet will actually use.
Read More →
Nominate a Fleet Leader for the 2027 Public Fleet Hall of Fame
Do you know a fleet leader who has made a lasting impact on the industry? Nominate this fleet professional for the 2027 Public Fleet Hall of Fame.
Read More →
Why Fleet Business Plans Need Three Perspectives
A fleet business plan should help agency leaders understand the fleet’s value, give the organization a clear direction, and establish shared expectations with customer departments.
Read More →
How Oil Analysis, Safety Technology, and Fleet Awards Drive Improvement
What happens when fleets let measured results guide their next decision?
Read More →
Emergency Response, Fleet Sales and New Technology
This week’s fleet news covers emergency preparedness, shifting vehicle sales, electric truck investments, and new tools for monitoring road conditions.
Read More →
NCDOT Adds Dash Cam Imagery to Statewide Traffic Monitoring
North Carolina transportation officials are adding another set of eyes to roads that aren't covered by fixed traffic cameras. A statewide deployment gives NCDOT access to on-vehicle imagery to verify conditions during work zones, severe weather, emergencies, and other traffic events.
Read More →
Turning a Bottleneck Into a Blueprint: How Tallahassee Rethought Police Fleet Readiness
For Tallahassee, finally receiving 87 delayed police cruisers created a new problem: how to get them on the road without creating a massive backlog. The solution would change more than the upfit process.
Read More →
AI, Police Fleet Readiness and Fire Apparatus News
See how AI, a reworked police-vehicle upfitting process, and a fire apparatus acquisition could affect public fleet operations.
Read More →
How AI and Automation Work Together to Reduce Government Fleet Downtime
As their assets age and their budgets’ purchasing power shrinks, government fleet managers are facing growing pressure to do more with less.
Read More →

