American Tech Solutions, LLC v. United States

United States Court of Federal Claims·Decided May 21, 2025·No. 25-27·Published

Opinion

In the United States Court of Federal Claims AMERICAN TECH SOLUTIONS, LLC, Plaintiff,

v.

THE UNITED STATES, No. 25-27C

Defendant, Filed May 21, 2025

and

KNIGHT FEDERAL SOLUTIONS, INC., Defendant-Intervenor.

David B. Dempsey, Dempsey Law, PLLC, Vienna, VA, for plaintiff.

Collin T. Mathias, Civil Division, United States Department of Justice, Washington, DC, for defendant .

Joseph M. Goldstein, Shutts & Bowen LLP, Fort Lauderdale, FL, for defendant-intervenor.

OPINION

Explaining Dismissal of American Tech’s Complaint for Failure to Prosecute

The U.S. Army solicited offers for a contract. The Army awarded Knight Federal Solutions the contract. Another bidder, American Tech, brought a post-award bid protest in this court asking the court to void the award of the contract to Knight and award the contract to American Tech instead. Knight intervened.

After filing its complaint, American Tech moved for entry of a protective order, which the court granted. American Tech struggled to comply with the protective order, publicly filing docu- ments that contained protected material several times. The court repeatedly warned American Tech

of its violations. Then, after further violations, the court issued a show-cause order directing Amer- ican Tech to comply with the court’s rules and requiring American Tech’s counsel to show cause for why he should not be sanctioned for earlier failures to comply.

While the show-cause order was pending, American Tech failed—three times—to timely request an extension of time to file its motion for judgment on the administrative record. When it belatedly requested those extensions, American Tech did not seek the defendants’ positions, in violation of this court’s rules. American Tech’s counsel attributed his failures to file to his having to address the problems with complying with the protective order and to computer failures. The court ordered American Tech to file its motion for judgment on the administrative record by March 13, 2025, and stated that no further extensions of the deadline would be granted. American Tech did not file its motion or request an extension of time to file the motion by the deadline. Thus, the court sua sponte dismissed American Tech’s complaint without prejudice for failure to prosecute under rule 41(b) of the Rules of the Court of Federal Claims. ECF No. 44. The court stated that a “detailed opinion discussing the court’s reasoning will follow.” Id. This opinion provides the court’s reasoning for that dismissal. I. Background In August 2023, the Army issued a solicitation for information technology services. ECF No. 1-1 at 1. The following month, the Army awarded the contract to Knight based primarily on its lower proposed price for the contract. ECF No. 1-2 at 10. American Tech, an unsuccessful offeror, protested the award at the Government Accountability Office. In February 2024, GAO denied American Tech’s protest, determining that the agency’s award decision was reasonable and adequately documented. Matter of American Tech Solutions, LLC, B-422212.2, 2024 WL 1172575 (Comp. Gen. Feb. 27, 2024). Almost a year later, American Tech filed its complaint here challeng- ing the Army’s decision to award the contract to Knight. ECF No. 1 (filed January 8, 2025).

Along with its complaint, American Tech moved for entry of the court’s standard protec-

tive order for bid protest cases. ECF No. 4; see Rules of the Court of Federal Claims (RCFC), Appendix of Forms, Form 8. The court entered the protective order. ECF No. 12. The court’s rules and the protective order provide a procedure for protecting material and for redacting that protected material when filing documents on the public record. ECF No. 12; RCFC, Appendix C [¶¶4-7, 16- 20]. It is the responsibility of the parties admitted under the protective order to ensure that they follow the procedures of the order to protect confidential material. ECF No. 12 at 4 [¶15]; RCFC, Appendix C [¶16(c)]. The protective order explains the process for electronically filing documents under seal, stating that “a document containing protected information may be filed electronically under the court’s electronic case filing system using the appropriate activity listed in the ‘SEALED’ documents menu.” ECF No. 12 at 3 [¶10]. Parties that breach the protective order are directed to “promptly report the breach to the other parties and immediately take appropriate ac- tions to cure the violation and retrieve any protected information that may have been disclosed.” ECF No. 12 at 4 [¶16].

American Tech also filed a proposed redacted complaint (ECF No. 2) and moved to seal its complaint (ECF No. 3). The parties disagreed on the scope of redactions and filed competing briefs on the motion to seal. ECF Nos. 14, 15, 22, and 26. Throughout the briefing on the motion to seal the complaint, American Tech publicly filed four different documents containing protected information, in violation of the protective order. ECF Nos. 15, 17, 20, and 26. American Tech’s filings contained protected information obtained from the GAO protest, and its unsealed filings also violated GAO’s protective order. See ECF No. 22 at 2-3. Each time American Tech improp- erly filed a document, the court sua sponte sealed the document, but only after seeing it, which was after the document had been publicly available for several hours. The court issued orders

notifying American Tech of its violations twice (ECF Nos. 18, 21) and ordered American Tech to comply with the protective order going forward (ECF No. 18). The court noted that counsel could call the clerk’s office for assistance with electronically filing documents under seal. ECF No. 21. Despite the court’s orders, American Tech continued to publicly file documents that contained protected information. ECF No. 26.

Following the first four violations of the protective order, the court issued an order directing American Tech to show cause for why it should not be sanctioned for failing to protect confidential information. ECF No. 27. The court warned American Tech that future violations could result in sanctions including fees for the defendants’ time to respond to American Tech’s violations, fines, and American Tech’s counsel’s losing ECF privileges. Id. at 3-4. American Tech’s next filing once again violated the protective order. ECF Nos. 28, 29. In response, the court revoked American Tech’s counsel’s ECF privileges. ECF No. 30. That sanction imposed additional administrative burdens on the court and its staff, as the court’s staff had to receive American Tech’s filings, review them for protected material, and then file them on behalf of American Tech. But the sanction was designed to prevent future late-night public filings of protected information.

Despite the court’s repeated warnings, in its next filing, American Tech submitted its re-

dacted complaint to the court, and after reviewing the document, the court determined that the document did not comply with the protective order and filed it under seal. ECF No. 32. Following that sixth violation of the protective order, the court had a scheduled hearing on the order to show cause. ECF No. 40 at 3. The court had requested that American Tech’s counsel ensure that his client attend that hearing, but American Tech’s counsel did not relay the court’s request to his client. ECF No. 42. The court therefore rescheduled the hearing for a later date, when American Tech—both counsel and client—could attend. Id. at 3-4.

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