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

EV Shifts, Salem’s Rise and GFX 2027
From hybrids and extended-range electric vehicles, to the changes that helped Salem, Oregon, become the No. 1 Leading Fleet.
Read More →
How Salem, Oregon, Turned Culture Change Into a No. 1 Fleet Ranking
Fleet availability reached 98.95% after Salem empowered employees and used performance data to guide years of steady improvement.
Read More →
BRINC Drones Adds Free Wildfire and Smoke Tracking as Agencies Across America Battle Active Fires
New map layers give public safety agencies real-time fire detections and smoke conditions integrated directly into LiveOps at no additional cost.
Read More →
Hidden in Plain Sight: Fleet Compliance Risks
Your fleet may have the right policies, but are they being followed consistently? This practical guide highlights six hidden compliance risks that can undermine public sector and shared fleet operations and shares proven approaches to improve oversight, drive accountability, and maintain audit readiness.
Read More →
Dealing With Workplace Fraud in Fleets
Workplace fraud in government organizations can result in significant financial losses, but understanding its causes and implementing effective controls can help mitigate the risk.
Read More →
Mercury Associates Returns to Independent Ownership
New owners John Martin, Brad Smith, and Daniel Reichmann plan to expand Mercury’s analytical capabilities while continuing to grow the CFMO program.
Read More →
Fleet Technology Targets Inspections, EV Procurement, and Parts Sourcing
How new technology is addressing routine operational challenges, from vehicle inspections to cooperative purchasing.
Read More →
Murfreesboro Fire Rescue Orders Three New Aerial Ladder Trucks
As Murfreesboro's population grows, its fire fleet is growing with it. Three new aerial ladder trucks will replace existing frontline apparatus and equip a new ladder company planned for Station 12.
Read More →
Fleetio Launches PartsTech Integration, Helping Fleets Save up to 15 Minutes on Each Purchase Order
Integration brings parts sourcing and ordering into one connected Fleetio workflow to reduce administrative work.
Read More →
What’s Holding Your Fleet Back?
Catch up on the week with news around creating a more structured operation, examining an outdated garage, and more.
Read More →

