28 Trans, LLC v. United States

United States Court of Federal Claims·Decided July 23, 2026·No. 26-204·Published

Opinion

In the United States Court of Federal Claims FOR PUBLICATION

No. 26-204C (Filed: July 23, 2026)

) 28 TRANS, LLC, ) ) Plaintiff, ) ) v. ) ) UNITED STATES, ) ) Defendant, ) ) and ) ) UBER TECHNOLOGIES, INC., ) ) Defendant-Intervenor. ) )

J. Larry Stine (argued), Wimberly, Lawson, Steckel, Schneider & Stine, PC, Atlanta, GA, for plaintiff. With him on the brief was Thomas L. Walker, Wimberly, Lawson, Steckel, Schneider & Stine, PC, Atlanta, GA.

Kristin E. Olson (argued), Trial Attorney, Commercial Litigation Branch, Civil Division, U.S. Department of Justice, Washington, DC, for defendant. With her on the briefs were Brett A. Shumate, Assistant Attorney General; and Patricia M. McCarthy, Director, and Frankline E. White, Jr., Assistant Director, Commercial Litigation Branch, Civil Division, U.S. Department of Justice, Washington, DC. Natica Neely, Trial Attorney, and Kate Gorney, Procurement Counsel, Office of General Counsel–District Contract Law Group, U.S. Department of Veterans Affairs, Washington, DC, Of Counsel.

Moshe B. Broder (argued), Jenner & Block LLP, Washington, DC, for defendant- intervenor. With him on the briefs were David Robbins, Elizabeth M.D. Pullin, Jennifer Eve Retener (argued), and Megan C. Bodenhamer, Jenner & Block LLP, Washington, DC.

William M. Weisberg (argued), Law Offices of William Weisberg PLLC, McLean, VA, for amici curiae Navarre Corporation and GovTranz LLC. OPINION AND ORDER

BONILLA, Judge.

Over nine million veterans are enrolled in the United States Department of Veterans Affairs’ (VA) health care system, and more than six million veterans receive health care services through the VA Veterans Health Administration (VHA)—a nationwide integrated network of medical centers and outpatient clinics.1 For many veterans, transportation to and from VHA medical appointments “can be a barrier to care for a variety of reasons, including rurality, lack of access to a vehicle, condition- specific challenges, and the cost of travel. To help veterans overcome these barriers, there are a number of federally supported VA transportation assistance programs.”2 This combined bid protest and breach of contract action involves the VA’s efforts to provide eligible veterans with a patchwork of transportation options under those programs.

28 Trans, LLC, a service-disabled veteran-owned small business, provides nonemergency special-mode ground transportation services to patients of the VA San Francisco Health Care System under a five-year contract with the VA.3 Through this action, 28 Trans challenges the VA’s public-private collaboration with Uber Health, LLC4 to transport veterans to and from their medical appointments, also in the San Francisco area.5 Specifically, 28 Trans charges that (1) the VA violated a

1 TAMAR B. BRESLAUER & MICHELE L. MALLOY, CONG. RSCH. SERV., R48406, CONNECTING VETERANS

AND VETERANS ORGANIZATIONS TO FEDERAL TRANSPORTATION ASSISTANCE 1 (2026); Veterans Health Administration, U.S. DEP’T OF VETERANS AFFS. (July 6, 2026), available at https://perma.cc/QM75- HQM3. 2 BRESLAUER & MALLOY, supra note 1, at 1.

3 Certain documents in the record refer to the “San Francisco Veteran Affairs Health Care Center

(SFVAHCS),” the “San Francisco Veteran Affairs Health Care System (SFVAHCS),” the San Francisco VA Medical Center (SF[-]VAMC),” and, as noted above, the “VA San Francisco Health Care System (VASFHCS).” Compare, e.g., ECF 1-3 at 1, with ECF 1-4 at 1, and ECF 17-2 at 2, and ECF 17-1 at 5. The address listed on the performance work statement for 28 Trans’ contract, however, refers only to the SFVAHCS. ECF 1-4 at 1. For clarity, the Court discusses them collectively as the “[SF-VAMC] and its associated healthcare facilities.” See ECF 17-2 at 2. 4 Uber Health is a wholly owned, healthcare-focused subsidiary of Uber Technologies, Inc.

5 In addition to Uber Health, 28 Trans’ complaint referenced the VA’s engagement of transportation

services provided by non-party Onward Health, Inc. In its response brief, 28 Trans failed to respond to the government’s representation that the VA’s relationship with Onward Health predates the contract awarded to 28 Trans. The Court raised this issue during oral argument. Because 28 Trans failed to respond to the government’s representation about the timing of the VA’s relationship with Onward Health, the Court determines 28 Trans’ bid protest arguments specific to Onward Health are waived. See SmithKline Beecham Corp. v. Apotex Corp., 439 F.3d 1312, 1319 (Fed. Cir. 2006) (citing Cross Med. Prods., Inc. v. Medtronic Sofamor Danek, Inc., 424 F.3d 1293, 1320–21 n.3 (Fed. Cir. 2005)) (explaining that “arguments not raised in the opening brief are waived”); Novosteel SA v. U.S., Bethlehem Steel Corp., 284 F.3d 1261, 1274 (Fed. Cir. 2002) (clarifying that “a party does not waive an

2 variety of federal procurement laws by de facto awarding Uber Health a series of sole source contracts outside of legal procurement avenues, and (2) in doing so, the VA breached its contract with 28 Trans by, among other things, taking rides that should have been assigned to 28 Trans and booking them with Uber Health instead. The nine-count complaint pleads: bid protest (Count I); equitable adjustment (Count II); breach of contract (Count III); breach of the implied covenant of good faith and fair dealing (Count IV); negligence and fraud (Count V); fraudulent inducement (Count VI); bad faith (Count VII); attorney’s fees (Count VIII); and out-of-scope change (Count IX). 28 Trans seeks declaratory and injunctive relief as well as over $1.1 million in damages and attorney’s fees.6

Pending before the Court is defendant’s motion to dismiss Count I of the complaint—pled as a bid protest—pursuant to Rules 12(b)(1) and 12(b)(6) of the Rules of the United States Court of Federal Claims (RCFC). The government argues the VA’s engagement of Uber Health and its use of the company’s rideshare platform are not procurements or proposed procurements within this Court’s bid protest jurisdiction and, regardless, 28 Trans lacks Article III and Tucker Act standing to challenge the VA’s collaboration with Uber Health. The Court heard oral argument on July 20, 2026. For the reasons set forth below, defendant’s partial motion to dismiss is granted.

BACKGROUND7

Title 38, United States Code, Section 111 authorizes the VA Secretary to:

pay the actual necessary expense of travel . . . , or in lieu thereof an allowance based upon mileage . . . , of any person to or from a Department facility or other place in connection with vocational rehabilitation, counseling required by the Secretary . . . , or for the purpose of examination, treatment, or care.

38 U.S.C. § 111(a). Section 111A, in turn, sanctions the direct transport of eligible veterans by the VA and third-party volunteer organizations and drivers. Id. § 111A(a)(1), (b)(1). Pursuant to these statutes, the VHA developed a series of

argument based on what appears in its pleading; a party waives arguments based on what appears in its brief”). 6 During the initial scheduling conference conducted on February 11, 2026, the Court denied 28 Trans’

motion for a preliminary injunction without prejudice. 7 In recounting the background, the Court relies on facts drawn from documents referenced in and

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