Advanced Simulation Technology Inc. v. United States

CourtUnited States Court of Federal Claims
DecidedNovember 4, 2024
Docket23-2201
StatusPublished

This text of Advanced Simulation Technology Inc. v. United States (Advanced Simulation Technology Inc. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Advanced Simulation Technology Inc. v. United States, (uscfc 2024).

Opinion

In the United States Court of Federal Claims

ADVANCED SIMULATION TECHNOLOGY INC., No. 23-2201 C Plaintiff, (Filed: November 4, 2024) v.

THE UNITED STATES,

Defendant.

Hamish Hume, Boies Schiller & Flexner LLP, Washington, DC, for plaintiff.

Brendan Jordan, Civil Division, United States Department of Justice, Washington, DC, for defend- ant.

OPINION AND ORDER Granting the Government’s Motion to Dismiss

SILFEN, Judge.

Advanced Simulation Technology, Inc. (ASTi) sells software to the military to train ser-

vicemembers on radio communication.1 The government has also developed its own training soft-

ware, called Digital Radio Management System (DRMS). ASTi alleges that the government has

violated its statutory duty under the Competition in Contracting Act to consider commercial alter-

natives by starting the process of creating DRMS-Next Generation, a new version of the DRMS

training software. Initially, ASTi protested the government’s decision to purchase parts and ser-

vices from a third party, Bowhead Professional and Technical Solutions, LLC, without first

1 This opinion was originally issued under seal to give the parties an opportunity to propose redac- tions of protected material. The parties had no proposed redactions. The court reissues this opinion publicly. 1 soliciting offers from other vendors. The government took corrective action and canceled the Bow-

head contract.

The government now moves to dismiss this case, arguing that there is no longer any pro-

curement to protest. ASTi alleges that there is still a procurement to protest because the govern-

ment is still working on developing DRMS and still needs the goods and services it had planned

to get from Bowhead. ASTi also notes that a military contractor posted jobs for DRMS technicians,

arguing that the job posting underlies a quiet government effort to continue to work on DRMS

without ever soliciting offers from the public. ASTi seeks a declaratory judgment and a permanent

injunction and, in the alternative, asks this court either to allow ASTi to amend the complaint or

to transfer the case to the District of Columbia district court, rather than granting the government’s

motion to dismiss.

At this point, after the Bowhead contract has been canceled, there has not been a suffi-

ciently concrete government procurement action that would make ASTi’s bid protest ripe. Thus,

this court grants the government’s motion and dismisses ASTi’s first amended complaint. Be-

cause amendment would be futile and transfer would be inappropriate, this court denies ASTi’s

alternative request for leave to amend or to transfer.

I. Background

The Naval Air Warfare Center Training Systems Division is a Defense Department labor-

atory that developed DRMS. ECF No. 48-1 at 2 [¶6]. Since it created DRMS more than 20 years

ago, the military has maintained and upgraded the software to meet its training needs. ECF No.

48-1 at 2 [¶6]. DRMS-Next Generation (DRMS-NG) is an iterative improvement on DRMS. ECF

No. 48-1 at 2 [¶7].

2 ASTi offers a commercial product line, Voisus, that provides a military training and simu-

lation system that, ASTi alleges, performs functions similar to DRMS-NG. ECF No. 21 at 25

[¶¶67-70]. ASTi alleges that its software is superior to the DRMS software. Id. at 4 [¶¶11-12].

In the summer of 2023, the government awarded a sole-source indefinite delivery, indefi-

nite quantity contract for DRMS hardware and software components to Bowhead. ECF No. 22-7.

The government placed two delivery orders under the Bowhead contract, primarily for hardware

components. ECF No. 22-5; ECF No. 22-9.

ASTi filed a bid protest in this court in December 2023, protesting the award of the contract

to Bowhead. ECF Nos. 1, 47. The government took corrective action and canceled the contract,

leaving in place only the two delivery orders that the government had already placed. ECF No. 26

at 6. ASTi moved to enjoin the government from accepting the goods in those delivery orders.

ECF No. 22. After a hearing, the government terminated the orders. ECF Nos. 37, 37-1. The court

then denied ASTi’s motion for a preliminary injunction as moot. ECF No. 40.

The government now moves to dismiss the remaining claims under rules 12(b)(1) and

12(b)(6) of the Rules of the Court of Federal Claims (RCFC). ECF No. 46. ASTi opposes and

requests, in the alternative, that this court grant it leave to amend the complaint or that this court

transfer the complaint to the district court for the District of Columbia. ECF No. 47 at 39.

II. Discussion

Under rule 12(b)(1), “a court must accept as true all undisputed facts asserted in the plain-

tiff’s complaint and draw all reasonable inferences in favor of the plaintiff.” Trusted Integration,

Inc. v. United States, 659 F.3d 1159, 1163 (Fed. Cir. 2011). If the court determines that it lacks

subject-matter jurisdiction, it must dismiss the action. RCFC 12(b)(1); see Steel Co. v. Citizens for

a Better Environment, 523 U.S. 83, 94 (1998). A “plaintiff bears the burden of establishing subject

3 matter jurisdiction by a preponderance of the evidence.” Estes Express Lines v. United States, 739

F.3d 689, 692 (Fed. Cir. 2014) (citation omitted). “Subject-matter jurisdiction may be challenged

at any time.” Folden v. United States, 379 F.3d 1344, 1354 (Fed. Cir. 2004); RCFC 12(h)(3) (“If

the court determines at any time that it lacks subject-matter jurisdiction, the court must dismiss the

action”).

A complaint should be dismissed under rule 12(b)(6) “when the facts asserted by the claim-

ant do not entitle him to a legal remedy.” Lindsay v. United States, 295 F.3d 1252, 1257 (Fed. Cir.

2002) (addressing earlier version of what is now RCFC 12(b)(6)). To avoid dismissal, a complaint

must “contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible

on its face.’” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (quoting Bell Atl. Corp. v. Twombly, 550

U.S. 544, 570 (2007)). In other words, rule 12(b)(6) ensures that the plaintiff has a claim for which

this court can grant appropriate relief. In reviewing a motion to dismiss under rule 12(b)(6), the

court will accept well-pleaded factual allegations as true and draw all reasonable inferences in the

claimant’s favor. Lindsay, 295 F.3d at 1257.

This court’s jurisdiction is primarily defined by the Tucker Act, which provides the court

with “jurisdiction to render judgment on 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 proposed award or the

award of a contract or any alleged violation of statute or regulation in connection with a procure-

ment or proposed procurement.” 28 U.S.C. § 1491(b). The court can grant “any relief that the court

considers proper,” including injunctive relief. Id. But monetary relief for bid protests is “limited

to bid preparation and proposed costs.” Id.

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