22nd Century Technologies, Inc. v. United States

United States Court of Federal Claims·Decided November 19, 2021·No. 21-1922·Published

Opinion

In the United States Court of Federal Claims No. 21-1922C (Filed: November 19, 2021)* *Opinion originally filed under seal on November 16, 2021

) 22ND CENTURY TECHNOLOGIES, ) INC., ) Plaintiff, ) v. ) Bid Protest; Motion to Dismiss for ) Lack of Subject Matter Jurisdiction; THE UNITED STATES, ) RCFC 12(b)(1); Size Determination; ) SBA; OHA; Federal Acquisition Defendant, ) Streamlining Act; FASA and ) ) FIBERTEK, INC., ) ) Defendant-Intervenor. ) )

W. Brad English, Huntsville, AL, with whom were Jon D. Levin, J. Dale Gipson, Emily J. Chancey, and Nicholas P. Greer, Huntsville, AL, for plaintiff.

Mikki Cottet, Civil Division, United States Department of Justice, Washington, DC, with whom were Brian M. Boynton, Acting Assistant Attorney General, Martin F. Hockey, Jr., Acting Director, and Patricia M. McCarthy, Assistant Director, for defendant. Dana Chase and Major Jason Coffey, United States Department of the Army, and Christopher J. McClintock, United States Small Business Administration, of counsel.

Seth H. Locke, Washington, DC, for defendant-intervenor. Brenna D. Duncan, of counsel. OPINION FIRESTONE, Senior Judge.

Plaintiff 22nd Century Technologies, Inc., invoking this court’s bid protest

jurisdiction, 28 U.S.C. § 1491(b)(1), 1 challenges the United States Department of the

1 Under 28 U.S.C. § 1491(b)(1), this court may review “an action by an interested party objecting to a solicitation by a Federal agency for bids or proposals for a proposed contract or to a Army’s decision to terminate a task order awarded to 22nd Century as a small business.

The termination followed a determination by the Small Business Administration’s (SBA)

Office of Hearings and Appeals (OHA) that 22nd Century was not a small business when

22nd Century submitted its proposal for the task order. Following the termination of

22nd Century’s task order award, the Army awarded the task order to defendant-

intervenor Fibertek, Inc. 22nd Century does not challenge the task order award to

Fibertek.

The government and Fibertek have moved to dismiss 22nd Century’s case for lack

of subject matter jurisdiction on two grounds: (1) the Federal Acquisition Streamlining

Act (FASA), 10 U.S.C. § 2304c(e), 2 bars this court from hearing 22nd Century’s

challenge because it arises “in connection with the issuance . . . of a task . . . order,” and

(2) 22nd Century has alleged not a bid protest but an unripe contract administration claim

that must be brought using the procedures of the Contract Disputes Act (CDA), 41 U.S.C.

§§ 7101-09. For the reasons explained below, the court concludes that 22nd Century’s

protest is barred by FASA, and the government and Fibertek’s motions to dismiss, ECF

Nos. 26, 27, are GRANTED. 22nd Century’s motion for a preliminary injunction, ECF

No. 3, is DISMISSED AS MOOT.

proposed award or the award of a contract or any alleged violation of statute or regulation in connection with a procurement or a proposed procurement.”

2 As explained below, FASA bars this court from hearing a “protest” made “in connection with the issuance or proposed issuance of a task or delivery order,” except under limited circumstances not alleged here. 10 U.S.C. § 2304c(e).

2 I. BACKGROUND

The following facts are taken from 22nd Century’s complaint and appendix unless

otherwise noted. On March 25, 2015, the Army issued Solicitation No. W15P7T-15-R-

0008 for a multiple award indefinite-delivery indefinite-quantity (IDIQ) contract seeking

to procure knowledge-based support services for requirements with Command, Control,

Communications, Computers, Intelligence, Surveillance, and Reconnaissance related

needs. Compl. ¶ 6, ECF No. 1. The IDIQ contract is an unrestricted procurement under

North American Industry Classification System (NAICS) code 541712, Research and

Development in Physical, Engineering, and Life Sciences (except Biotechnology), with a

corresponding 500 employee size standard. 3 Id. ¶ 7; id. at A28. Though the IDIQ

contract was not limited to small businesses, by its terms the Army could restrict task

order competitions under the IDIQ contract to small businesses. Id. ¶ 8; id. at A28.

On May 6, 2015, 22nd Century submitted its proposal for the IDIQ contract. Id. ¶

9. At that time, 22nd Century was a small business. Id. 22nd Century was an eventual

awardee of the IDIQ contract. Id.

On December 29, 2020, the Army issued Solicitation No. W9090MY-21-R-D002

for a task order under the IDIQ contract (“Task Order RFP”). Id. ¶¶ 1, 10. The task

order is to provide U.S. Central Command with Near Real Time Identity Operations

services. Id. at A6. The Task Order RFP provided that the task order was “restricted to

3NAICS code 541715, with a corresponding 1,000 employee size standard, has replaced NAICS code 541712. See Compl. ¶ 11 n.1; Def.’s Mot. at 4 n.1, ECF No. 26. NAICS code 541715 applies to the task order at issue in this case. Compl. ¶ 11. 3 small businesses” under NAICS Code 541715, see supra n.3, and required that offerors

represent which category of business they qualified for, including “not a small business

concern.” Compl. ¶ 11.

On February 8, 2021, 22nd Century, Fibertek, and Ideal Innovations, Inc.

submitted initial offers. Id. ¶¶ 12, 15; id. at A29. On May 7, 2021, the Army awarded

the task order to 22nd Century. Id. ¶ 14.

On May 11 and 14, 2021, Ideal Innovations and Fibertek, the unsuccessful

offerors, submitted size protests to the contracting officer, claiming, among other things,

that the Task Order RFP required offerors to recertify their size status with the

submission of their proposal, and, as of the February 8, 2021 proposal due date, 22nd

Century was not a small business under NAICS Code 541715. Id. ¶ 15; see id. at A6,

A15. 22nd Century concedes it was not a small business as of February 8, 2021 but

argued that applicable law made its size on May 6, 2015—the date it submitted its

proposal for the IDIQ contract—determinative. Id. ¶¶ 12, 16. The size protests were

submitted to the relevant SBA Area Office for review. 4

On June 4, 2021, the Area Office made a formal size determination, finding that

22nd Century is an “other than small” business for the Task Order RFP. Id. ¶ 17. The

Area Office concluded that the size status of 22nd Century was to be determined as of

4 Under Subpart 19.3 of the Federal Acquisition Regulation and Part 121 of Title 13 of the Code of Federal Regulations, an offeror may submit to a contracting officer a protest regarding the small business representation of another offeror in a specific offer. Harmonia Holdings Grp., LLC v. United States, 147 Fed. Cl. 756, 775 (2020). The contracting officer forwards the protest to the proper SBA Area Office to make a formal size determination. Id. The Area Office’s determination may be appealed to OHA. Id.

4 February 8, 2021, the date 22nd Century submitted its offer, at which time 22nd Century

concedes it was not a small business. Id. ¶¶ 12, 17.

After the Area Office made this size determination, on June 7, 2021, the

contracting officer terminated 22nd Century’s task order by issuing a notice of

termination for convenience. Id. ¶ 19; see id.

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